BC had highest rate of unaffordable housing in Canada in 2021: statistics

BC had the highest rate of unaffordable housing in Canada in 2021: statistics

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New data released by Statistics Canada today indicates British Columbia had the highest rate of unaffordable housing in the country in 2021.

BC’s rate was 25.5%, followed by Ontario at 24.2%, largely due to the higher rates of unaffordable housing in Metro Vancouver (29.8%) and Greater Toronto (30.5%) — the two metropolitan areas with the highest rates of unaffordable housing, which have larger clusters of renters.

As can be expected, living in the downtown of a big city carried a cost premium, and it is where unaffordable housing rates were the highest. Downtown households, both renters and owners, are most likely to be spending over 30% of their income on shelter costs.

The definition of housing that is deemed technically “affordable” is housing costs that are equal to under 30% of the total before-tax income of a household, according to Canada Mortgage and Housing Corporation.

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According to Statistics Canada, the rent for a two-bedroom unit in the primary downtown of the region was 50% higher in Vancouver and 32% higher in Toronto compared to their respective regions as a whole.

Amongst Canada’s largest regions, renters in the primary downtowns had unaffordable rates of 45.2% in Toronto, 44.8% in Vancouver, and 44.2% in Montreal. Homeowners in these same downtowns also had unaffordable rates of 36.2% in Toronto, 33.4% in Vancouver, and 30.9% in Montreal.

For those in a “core housing need,” defined as living in unsuitable, inadequate, or unaffordable housing and not able to afford alternative housing in their community, Statistics Canada indicates the largest gap was in Montreal, where renters (14.6%) were over six times more likely to be in need than homeowners (2.4%). Renters were also more than twice as likely to live in need as homeowners in Toronto (28.7% renters vs. 9.6% homeowners) and Vancouver (27.2% renters vs. 10.9% homeowners).

BC saw 23.6% of households living in a condominium, making it the largest share of residents living in a condominium among the provinces. This includes 32.5% of households in Metro Vancouver — the highest amongst all Canadian census areas, followed by Kelowna at 23.4%, Abbotsford-Mission at 22.2%, and Victoria at 20.3%.

Condominium living rates in other major regions were 23.9% in Greater Toronto, 23.8% in Calgary, 20.5% in Edmonton, and 18.7% in Montreal.

Alberta saw 21.2% of its residents living in unaffordable housing, making it the third highest rate nationally for a province in 2021. Statistics Canada emphasizes Alberta was the only province to see an increase in the rate of unaffordable housing, which was attributable to owner households.

In contrast, the rates of unaffordable housing in Atlantic Canada are lower, where homeownership rates are generally higher. The Maritimes had unaffordable housing rates of 7.5% in New Brunswick, 8.8% in Prince Edward Island, 8.9% in Newfoundland and Labrador, and 9.7% in Nova Scotia.

Canadians overall are now less likely to own their home, with 66.5% owning a home in 2021 — down from the record high homeownership rate of 69% in 2011. In the years prior, homeownership grew from 63.6% in 1996 to 69.4% in 2006. This falling trend in homeownership occurred while the proportion of people living alone or with roommates increased; households such as couples with or without children are more likely to own their home.

BC recorded the third largest decline in homeownership rates, falling from 70% in 2021 to 66.8% in 2011. Ontario experienced the fourth largest drop from 71.4% to 68.4% over the same decade-long period.

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