You need to make double the minimum wage to afford rent in Calgary
A new study is shining a sad light on the housing affordability crisis in Calgary, with workers needing to make over double the minimum wage to afford rent.
The Zoocasa study revealed that Calgarians need to make at least $34.23 per hour, or $66,750 per year, to comfortably rent a one-bedroom apartment in the city, which costs an average of $1,780 per month.
Renting a two-bedroom apartment isn’t much better. The report found that the required hourly minimum wage is $41.54, or $81,000 annually. The average rent for a two-bedroom apartment is $2,160.
Zoocasa
The report used the 32% rule to calculate the required hourly wage to afford rent in Calgary. The Canadian Mortgage and Housing Corporation recommends spending no more than 32% of a person’s income on housing.
Using this rule, the report painted the bleak reality of the housing situation many renters face in the city. While it can be considered a more affordable city than its coastal counterparts like Vancouver and Toronto, housing is still unattainable for many residents in Calgary.
Workers who earn the province’s minimum wage of $15 per hour would need to spend no more than $780 on rent monthly. This is a far cry from the average rent of $1,780 for a one-bedroom apartment in Calgary.
Even couples earning minimum wage would struggle to comfortably afford a one-bedroom apartment together in the city, the report found.
According to the 32% rule, a couple earning minimum wage should spend no more than $1,560 monthly on rent. That’s over $200 less than the average cost of a one-bedroom apartment.