Alberta minimum wage needs to be nearly $25/hour in some cities to afford rent
The cost of living is tight for some, and a new report has flagged that the Alberta minimum wage needs to be nearly $25 in some cities just to afford rent.
According to a new report from the Canadian Centre for Policy Alternatives (CCPA), a huge amount of neighbourhoods in key Alberta cities have very little to no affordable one- and two-bedroom rental units for full-time minimum-wage workers.
The study looked at the gap between minimum wage and what it costs to rent an apartment in Canada, calculating a “rental wage” needed to work a standard 40-hour week and spend no more than 30% of one’s income on rent.
CCPA found that the rental wage is higher than the minimum wage across Canada. And higher minimum wages don’t translate into better living conditions “because landlords capture a larger share of those wages through high rents.”
The rental wage is considerably higher than the minimum wage in every single province. Even in the three provinces with the highest minimum wage in Canada — BC, Ontario, and Alberta — there’s a shortfall in what minimum-wage workers earn and the rent they have to pay, on average.
CCPA
Where it’s the worst for Canadians is no surprise — Vancouver and Toronto are the least money-friendly cities to be in, even two full-time minimum-wage workers cannot afford a one-bedroom unit without spending more than 30% of their combined income on housing.
Alberta’s minimum wage was the third highest and it was still 43% below the one-bedroom rental wage.
Alberta’s minimum wage is at $15; however, to afford a one-bedroom place it should be at $21.41, while a two-bedroom should be at $25.37.
When the numbers are broken down by some cities highlighted in the report, it’s pretty bleak.
Calgary and the surrounding area
In Calgary, a one-bedroom rental wage clocks in at $24.65, while a two-bedroom rental wage spikes up to $29.51.
Data is only given for a two-bedroom in Airdrie and Cochrane, with Airdrie coming in at $26.96 an hour and Cochrane at $22.40 an hour.
Edmonton and the surrounding area
In Edmonton, a one-bedroom rental wage clocks in at $20.89, while a two-bedroom rental wage spikes up to $25.61.
Data is only given for a two-bedroom in Sherwood Park, Leduc, St. Albert, Stony Plain, Fort Saskatchewan, and Spruce Grove.
Sherwood Park comes in at $28.67 an hour, Leduc on the lower end at $23.42 an hour, St. Albert at $26.56, Stony Plain at $26.46 an hour, Fort Saskatchewan at $22.58 an hour and Spruce Grove at $24.54 an hour.
Lethbridge
In Lethbridge, a one-bedroom rental wage clocks in at $19.62, while a two-bedroom rental wage spikes up to $21.75.
What do you think should be done to help ease affordability in Alberta?
With files from Sarah Anderson
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