You are using an older browser version. Please use a supported version for the best MSN experience.

Study says rents in most cities are unaffordable for lower-income earners

A new analysis suggests a minimum-wage worker could afford to rent in just a few neighbourhoods in Canada. The report defines "affordable" rent as 30 per cent or less of a renter's pre-tax income. Someone earning minimum wage would only be able to afford a one-bedroom rental in nine per cent of 795 neighbourhoods in Canadian cities included in the study. The figure drops to three per cent of neighbourhoods when looking at the affordability of two-bedroom units. The federal government has promised a rent-supplement program that includes programs to build more rental housing. The government is hoping a boost in supply will drive down costs. Negotiations with provinces are also winding along on the design of a new rent supplement for low-income tenants that will average about $2,500 a year. The new portable housing benefit is to roll out next year, which will be tied to a person rather than a unit. Spending is set at $4 billion and will require tough decisions about who gets it, how much they can receive, and when it gets taken away. Roughly one-third of households, or 4.7 million, are renters and they are often low-income earners, or young adults, or newcomers to Canada.
image beaconimage beaconimage beacon