Calgary Affordable Housing Needs Assessment

Transcription

1 Office of Land Servicing & Housing Calgary Affordable Housing Needs Assessment June 2012 Authors: Claire Noble & Cheryl Selinger Onward/ By 2020, The City will enable affordable housing choices targeting new units in new and established communities.

2 AFFORDABLE HOUSING DIVISION Calgary Affordable Housing Needs Assessment June 2012 Authors: Claire Noble Residential Development Research Assistant And Cheryl Selinger Residential Development Research Assistant Additional Information: Claire Noble or Cheryl Selinger Affordable Housing Division Office of Land Servicing and Housing The City of Calgary Tel: or 2012 The City of Calgary, Office of Land Servicing and Housing, Affordable Housing Division

3 Executive Summary Affordable Housing is a priority of The City of Calgary and is recognized as an integral part of complete communities in The City s long-range vision for the future. The need for affordable housing is well-recognized and since 2001, The City of Calgary has committed the funds to build over 1,000 units of affordable housing to alleviate this need. Given the importance of affordable housing and the magnitude of The City s investment in affordable housing, this research was needed to inform the quantity, type and location of future affordable housing development by The City. This 2012 Housing Needs Assessment (HNA) report answers the question who is in need of affordable housing? and gives some indication of what types of affordable housing are deficient. In 2012, affordable housing preferences research was undertaken to better answer the questions what type of housing and what locations (where) are preferred by those in need? Together these two pieces of research will inform the setting of goals regarding the number, type and location of affordable housing units to be delivered as part of the Short-Term Development Strategy and the Corporate Affordable Housing Strategy update. These strategies will address the question of how and when affordable housing is to be delivered. This HNA may also be useful for advocacy purposes. This report is primarily for City of Calgary staff working on affordable housing, but may also be useful to anyone else interested in affordable housing need in Calgary, such as Calgary City Council, the provincial government and community-based affordable housing providers. This report is a synthesis of relevant secondary data on demographic and economic trends, the housing market, poverty and housing need. A future update is envisioned to occur in early 2014 and every five years thereafter to coincide with the release of Federal Census data. To augment the secondary data included in this report, primary data on the housing preferences of low- and middle-income Calgarians was collected in 2012 and the results will be included in the 2014 update. The need for affordable housing in Calgary is significant. According to the Canada Mortgage and Housing Corporation (CMHC), a household is 1 P a g e

4 considered to be in core housing need if it must spend greater than 30% of its gross income to secure housing that is: Adequate - in good repair, and Suitable - has enough bedrooms for the household, according to the National Occupancy Standards. For the purposes of this report, households are assumed to need affordable housing if they earn less than $44,000 per year and are currently spending more than 30% of their income on housing. In 2006, Calgary was home to 383,640 households, of which 72,195 were in need of affordable housing. Of these households in need, 33,585 were lowincome owner households and 38,610 were low-income renter households (The City of Calgary, CNS, 2008). These figures do not take into account low-income households that are currently acceptably housed, including those residing in the 11,759 units of non-market rental units presently in Calgary s housing stock (The City of Calgary, CNS and OLSH, 2012). In all, 18.8% of all Calgary households were in need of affordable housing (The City of Calgary, CNS, 2010). Many of these households were either overspending on market rental housing, or living temporarily with friends or family. While affordable housing of all types is needed, supply issues are expected for housing with two or more bedrooms, as well as accessible and adaptable housing. Row homes and dwellings with more than two bedrooms are expected to comprise much of the decline in the rental housing stock in the coming decades. As such, supply shortages in both market and non-market housing are expected for these larger units. There are also a very limited number of known accessible or adaptable units in the non-market rental supply; presumably, the market rental supply is similarly limited. Demand factors such as population trends and economy influence housing need. Housing need may be influenced by these population trends in Calgary: The number of seniors will grow rapidly as the baby boomers age; by 2036 over 15% of the population will be over 65 years old (Merrill Cooper, 2006) Calgary had a 10% increase in the number of children 0-4 years of age between 2006 and 2011 (Statistics Canada, 2012) and, over the next 2 P a g e

5 five years population growth will be driven by births rather than net migration, as it has previously been (The City of Calgary, CNS, 2011), Calgary will experience a rapidly growing young Aboriginal population (Merrill Cooper, 2006) and, Calgary will likely remain a major Canadian destination for immigrants (Merrill Cooper, 2006), and net migration is expected to remain positive at least over the next five years (The City of Calgary, CNS, 2011). These factors are significant because many immigrant and Aboriginal households are families with children, and many seniors will develop disabilities as they age. These trends are expected to contribute to the increasing demand for units with a larger number of bedrooms and accessible or adaptable units. There are traditionally high poverty rates among unattached individuals (45-59), lone-parents, recent immigrants, people with disabilities and Aboriginals (Merrill Cooper, 2006). The current information on housing need and relevant trends in Calgary points to several key subpopulations in housing need. These key subpopulations are: Unattached individuals aged 45-59, Seniors, Households with the presence of a disability, Families with children, particularly lone-parents, Recent immigrant-headed households, and Aboriginal-headed households. Clearly these sub-populations encompass a large proportion of the population. These subpopulations are not mutually exclusive and there is likely overlap between several categories. These populations are considered key because they meet one or more of the following criteria: They constitute a large portion of all households in need, They have a high rate of housing need, They are predicted to experience high population growth, and/or They are not well served by the existing and future housing supply. 3 P a g e

6 Historically, the proportion of households in need of affordable housing has remained relatively stable at approximately 18% (The City of Calgary, CNS, 2010). If this trend continues, approximately 86,832 households are projected to need affordable housing by This represents an increase of approximately 1,200 households in need each year. In contrast, historically only new units of affordable housing (rental and ownership) are created each year. A number of factors threaten to increase the proportion of households in need of affordable housing in Calgary. These factors include: A backlog of prospective first-time homebuyers who remain in the rental market because they are increasingly priced out of homeownership, Predicted declines in the market rental supply as existing supply reaches the end of its useful lifespan, Loss of rental units to condominium conversion (because the majority of units are now in the secondary rental market, and can be more readily removed for resale), and Predicted declines in the non-market rental supply as existing units reach the end of their useful life spans. Further, the current approach to homelessness in Calgary involves Housing First. With Housing First, the priority is to quickly move people experiencing homelessness into appropriate housing first, and then begin to work on the issues that contributed to their homelessness from the stability and safety of a home (Calgary Homeless Foundation, 2011). Accordingly, more than 3,000 additional homes will be required to house the homeless during the implementation of Calgary s 10 Year Plan to End Homelessness (Calgary Homeless Foundation, 2012). In sum, given the current rate of growth in housing need and affordable housing development, the affordable housing shortfall is expected to grow by at least 1,000 units per year from the existing 72,195 shortfall. The greatest shortages are expected to occur in the accessible, adaptable and larger bedroom unit types. 4 P a g e

7 Executive Summary Introduction Affordable Housing in Calgary Purpose of this Report Methodology and Study Area Current Housing Need Definition of Housing Need and Affordable Housing Total Current Affordable Housing Need Renters in Housing Need Renters in Housing Need with Adequacy and Suitability Challenges Non-Market Housing Wait Lists as an Indication of Housing Need Homeowners in Housing Need Affordability Challenges of Specific Populations Aboriginals Newcomers Temporary Foreign Workers Persons with Disabilities Seniors Lone-Parents Future Housing Need Estimate of Growth of Housing Need Factors that will affect Growth in Housing Need General Population and Economic Factors Poverty Factors Housing Supply Factors Homelessness Strategy Factors Summary of Factors Affecting Growth of Housing Need Conclusion Next Steps List of Tables List of Figures References P a g e

8 The City of Calgary provides this information in good faith. However, The City of Calgary makes no representation, warranty or condition, statutory express or implied, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability for any loss arising from any use or reliance on this report. 6 P a g e

9 1.0 Introduction 1.1 Affordable Housing in Calgary The City of Calgary is committed to creating complete communities as part of its Council-approved Municipal Development Plan. Affordable housing is recognized as an integral part of this commitment in a number of The City s plans. The availability of housing options for all citizens is a key success measure. The City of Calgary s approved business plan and budget emphasizes the importance of affordable housing as part of Priority Area 1: ensuring every Calgarian lives in a safe community and has the opportunity to succeed (The City of Calgary, 2012). Since 2001, The City of Calgary has committed the funds to build over 1,000 units of affordable housing to address affordable housing need. 1.2 Purpose of this Report The purpose of this research is to inform future affordable housing development by The City of Calgary. A secondary purpose of this research is to provide other affordable housing providers in Calgary with a detailed portrait of the current and projected need for affordable housing in the city. This 2012 Housing Needs Assessment (HNA) report answers the question who is in need of affordable housing? and gives some indication of what types of affordable housing are deficient. In 2012, affordable housing preferences research was undertaken to better answer the questions what type of housing and what locations (where) are preferred by those in need? Together these two pieces of research will inform the setting of goals regarding the number, type and location of affordable housing units to be delivered as part of the Short-Term Development Strategy and the Corporate Affordable Housing Strategy update. These strategies will address the question of how and when affordable housing is to be delivered. This HNA may also be useful for advocacy purposes. 7 P a g e

10 This report identifies key subpopulations in need of affordable housing and the quantity of affordable housing that is required to meet this need from The first section of this report provides the purpose and method used to undertake the research. The second section presents detailed information about the current affordable housing need. The third section predicts affordable housing need from , and discusses various factors that will affect the quantity and type of affordable housing needed. A final section provides a conclusion and next steps. An update is planned every five years, to coincide with the federal census cycle. 1.3 Methodology and Study Area This housing needs assessment focuses on the following factors, which influence housing affordability and the need for affordable housing: Population growth Migration trends Demographic trends Labour market trends Real estate market trends Rental market trends Poverty This initial affordable housing needs assessment makes use of secondary data sources and is a compilation of research, data and findings from other City of Calgary departments and outside organizations. The three appendices attached to this report support the findings herein. 8 P a g e

11 The inclusion of primary data is planned for the 2014 update of this report. In 2012, The Affordable Housing Section conducted primary research through a survey and a series of focus groups with low- and middle-income Calgarians, focusing on their location, form, and design preferences. Special consideration was given to any unique needs and preferences of six specific subpopulations: unattached individuals aged 45-59, seniors, households with the presence of a disability, families with children (including lone-parent families), Aboriginals, and recent immigrants. The results of this housing preferences research will be applied to the Calgary context to identify sites desirable for affordable housing development. The study area in this report is Calgary, Alberta, Canada, as defined by the city limit boundary (see Figure 1). Some reference to the Calgary Economic Region and the Calgary Census Metropolitan Area (CMA) is made where data specific to the city was unavailable. Figure 1: The City of Calgary, city limit boundaries 9 P a g e

12 2.0 Current Housing Need 2.1 Definition of Housing Need and Affordable Housing Statistics Canada and Canada Mortgage and Housing Company (CMHC) consider housing affordable if a household spends 30% or less of their gross income on shelter. For housing to be acceptable, it must not only be affordable, but also adequate (in good repair) and suitable (have enough bedrooms for the household size, according to the National Occupancy Standards). A household is in core housing need if its housing falls below at least one of the adequacy, affordability or suitability standards and it would have to spend 30% or more of its gross income to find housing that meets all three standards (Canada Mortgage and Housing Corporation). It is important to recognize that households in core housing need are not necessarily homeless. In many cases they are currently overspending on market accommodations or temporarily living with friends or family. Households may overspend on housing for a variety of reasons, regardless of income or tenure. A higher income household may overspend by choice, to live in a luxury home or a highly-desirable location, whereas a lower income household is more likely to overspend out of necessity, because acceptable market housing is not available in their price-range. The majority of households overspending on shelter have incomes within the lower ranges. This is especially true of households overspending on rental, the more affordable tenure (see Figure 2). 10 P a g e

13 Number of Households 2006 Calgary Renter and Owner Households - Total and Overspending on Housing 35,000 30,000 25,000 20,000 15,000 10,000 5, ,270 Owners Owners Overspending Renters Renters Overspending Gross Annual Household Income Figure 2: 2006 Calgary renter and owner households total and overspending on Housing (Statistics Canada, 2006) The Calgary City Council approved definition of affordable housing is housing that adequately suits the needs of low- and moderate-income households at costs below those generally found in the Calgary market. It may take a number of forms that exist along a continuum including various rental options through to entry-level home ownership (see Figure 3). Affordable housing is targeted to households with 65 percent or less of the median household income in Calgary (The City of Calgary, 2002). Based on 2006 data, this means that housing initiatives in Calgary are targeted to households with a gross income of less than $44,000 per year that are spending 30% or more of that income on housing (The City of Calgary, CNS, 2012). 11 P a g e

14 Figure 3 Housing Continuum This definition provides high-level direction for the creation of affordable housing and enables research on housing need based on federal census data. In practice, core need income thresholds are used to evaluate a household s eligibility for City of Calgary affordable housing. Core needs income thresholds vary by bedroom number required and by municipality, and are published annually by The Government of Alberta. The 2012 core need income thresholds for Calgary can be seen in Table 1. Bachelor 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5+ Bedroom $30,000 $37,500 $46,000 $53,000 $57,500 $60,500 Table Core Need Income Thresholds for Calgary (Alberta Municipal Affairs, 2012) 2.2 Total Current Affordable Housing Need There are approximately 116,000 households with an income of $44,000 or less per year in Calgary. These households currently reside throughout the housing continuum and, in some cases, in homelessness. Many have their housing needs met through existing market rental and ownership opportunities, as well as current non-market rental and ownership supply. As identified by the 2006 Federal census, 72,195 low-income households do not have their housing needs met; 38,610 renter households and 33,585 owner households are in need of affordable housing (see Figure 5). Due to population growth, this number has likely risen since the 2006 census was conducted. Furthermore, there are 3,190 additional people who are currently homeless and in need of affordable housing, many of whom were not captured by the federal census (Calgary Homeless Foundation, 2012). 12 P a g e

15 Households or Homeless Individuals Distribution of Low-Income Households (<$44,000) and Housing Need ,190 9,086 38,610 11,759 22,850 33, need met in need Figure 4 Distribution of low-income (<$44,000) households and housing need Sources: Homeless - based on individuals in the 2012 Homeless Count (Calgary Homeless Foundation, 2012), Market rental based on rental households reported by the 2006 Federal Census (Statistics Canada, 2006) minus estimated number of households in non-market rental, Non-market rental - based on full occupancy of the non-market rental supply as reported in the 2011 Non-Market Housing Survey (The City of Calgary, CNS and OLSH, 2012), Market ownership based on owner households reported in the 2006 Federal Census (Statistics Canada, 2006) Non-market ownership - assuming full occupancy of all non-market homeownership units (Appendix Calgary Housing Supply) The 72,195 low-income households in need of affordable housing constituted 18.8% of all 383,640 Calgary households in 2006 (The City of Calgary, CNS, 2010). Over time, as Calgary s population has grown, the proportion of households in need of affordable housing has remained relatively constant. On average, 18.1% of all households were in housing need between 1991 and 2006 (The City of Calgary, CNS, 2010). 2.3 Renters in Housing Need As of 2006, there were 38,610 target income renter households overspending on shelter (37% of all renter households in Calgary). The majority (20,985) of these were single-person households; however, large numbers of lone-parent, couple, roommate, and two-parent households are also represented (Table 2). 13 P a g e

16 Table 2: Target-income (<$44,000) renter households that are spending 30% or more of gross income on shelter, as a percentage of all renter households in Calgary Type of Renter Household All Renter Households in Calgary Target Income Renter Households that are Overspending on Shelter Number Number Percent Individual Households 56,560 24, % Single person 42,685 20, % households Two or more 13,875 3, % unrelated individuals sharing a households Family Households 46,515 13, % Two-person 16,460 4, % families no children Two-parent 14,675 3, % families with children Lone-parent 10,215 4, % families with children Any type of family 5, % household that has unrelated persons sharing the household Multi-Family Households % Households in which two or more families occupy the same private dwelling Totals 104,040 38, % (The City of Calgary, CNS, 2008) The Calgary renter households overspending on shelter are located throughout the city, with concentrations in the inner-city as well as several established communities (see Figure 4). 14 P a g e

17 Index of Volume (INV) Tenants Spending 30% or More of Income on Rent Calgary, 2006 INV River Major park No data Created by Social Policy and Planning, 2009 Source: Statistics Canada, 2006 Census custom tabulations Figure 5: Index of volume tenants spending 30% or more of income on rent, Calgary, 2006 (The City of Calgary CNS, 2010) 15 P a g e

18 2.3.1 Renters in Housing Need with Adequacy and Suitability Challenges Adequate housing is defined as dwellings with all basic plumbing facilities that need only regular maintenance or at most minor repairs (Canada Mortgage and Housing Corporation, 2011). In the federal census, Statistics Canada asks householders to indicate if their dwelling is in need of regular maintenance, minor repairs, or major repairs. As of 2006, of the 38,610 target-income renter households in Calgary that are in housing need, less than 10% of these or approximately 3,400 households were also living in inadequate housing that needs major repairs (The City of Calgary, CNS, 2008). Suitable housing is defined as dwellings that have enough bedrooms for the size and make-up of the resident households. In some cases, although rent may be affordable, accommodations in that rent range may be unsuitable due to overcrowding. For example, a family of four with a household income of $44,000 may be able to afford a bachelor apartment in Calgary, but that apartment is unsuitable for them because the family would be overcrowded in a bachelor suite. Overcrowding is determined in relation to the National Occupancy Standards, which state that there can be no more than two persons per bedroom, parents are eligible for a bedroom separate from their children, household members aged 18 or older are eligible for a separate bedroom unless married or cohabitating as spouses, and dependants aged five or older of the opposite sexes do not share a bedroom (The City of Calgary, CNS, 2009). As of 2006, overcrowding did not appear to be a significant issue for Calgary households overall (The City of Calgary, CNS, 2009). 16 P a g e

19 Key Findings - Affordability, Adequacy and Suitability Challenges: As of 2006, there were 38,610 target income renter households overspending on shelter. The majority (20,985) of these were single-person households; however, large numbers of lone-parent, couple, roommate, and two-parent households were also represented. These households currently live throughout the city, with concentrations in the centre city and several established communities. Of these households, less than 10% or approximately 3,400 households are also living in inadequate housing that needs major repairs. As of 2006, overcrowding (housing suitability) did not appear to be a significant issue for Calgary households. Overall, affordability appears to be a much greater problem than adequacy or suitability Non-Market Housing Wait Lists as an Indication of Housing Need The 2011 Survey of Non-Market Rental Housing in Calgary reported that in total, 25 agencies (81%) maintain 52 waiting lists. 4,351 households were seeking access to non-market housing, as of August 15, 2011 (The City of Calgary, CNS and OLSH, 2012). Of these, 619 households were on a waiting list for a provider other than Calgary Housing Company (The City of Calgary, CNS and OLSH, 2012). It is important to note that there may be some degree of overlap, with some households likely appearing on multiple wait lists. Calgary Housing Company s (CHC) wait list is an indicator of demand for affordable housing; it contains a portion of the 38,610 Calgary households in need of affordable rental housing. As shown below, the number of applicants has more than doubled since Table 3: Calgary Housing Company wait list (in April of each year) * *As of November (Calgary Housing Company, 2010) (Wilkins, 2011) An analysis of the CHC waitlist was conducted in June 2010 and updated in November The greatest numbers of households on the waitlist need one- and two-bedroom units. However, taking into consideration the fact that larger units accommodate more people, it is estimated that the greatest number of people are 17 P a g e

20 waiting for two-and three-bedroom units. For example, while 22% of the households on the waitlist need more than two bedrooms, approximately 41% of the people on the waitlist need more than two bedrooms. Table 4: Calgary Housing Company waitlist demand by bedroom size, actual % of households and estimated # of people (November 2011) Number of Bedrooms Units (based on April 2011 waitlist) % households Estimated # of people (based on National Occupancy Standards*) % people One-bedroom % % Two-bedroom % % Three-bedroom % % Four-bedroom 229 6% % Five+ bedroom 38 1% 280 3% Households: (Wilkins, 2011) People: assumed a constant proportion of lone-parents across 2-5+ bedroom types, and that each child s bedroom contains 1.5 children (same sex children under 18 years are assumed to share a bedroom). As of April 2012, The Accessible Housing Society Housing Registry had 44 applicants who have applied to Calgary Housing Company for affordable and accessible housing. The majority of these households require Level 1 accessible housing, which is for those with canes or walkers who can t climb stairs and who may require grab bars in their units (see Table 4). 18 P a g e

21 Table 5: Accessible Housing Society Housing Registry applicants who have applied to Calgary Housing Company for affordable and accessible housing, April 30, 2012 Level of Need Description Number of Applicants % of Applicants 1 For those with canes or walkers, 31 70% who can t climb stairs and may need grab bars in their units 2 Between level 1 and % 3 For those in wheelchairs or 9 20% scooters. Unit is fully accessible, with wheel-in showers, lower counter tops, and wider doors. Total 44 (Theresa Shields, 2012). Most (87%) of homeless households on the Calgary Housing Company waitlist require one-bedroom units (see Table 5). Table 6: Waitlist demand by bedroom size, for homeless (June 2010) Number of Bedrooms % One-bedroom 87% Two-bedroom 10% Three+ bedroom 3% (homeless households make up 22% of all households on the wait list) (Calgary Housing Company, 2010) Many (43%) of the recent immigrants on the Calgary Housing Company waitlist require two-bedroom units (see Table 6). Table 7: Waitlist demand by bedroom size, for recent immigrants (June 2010) Number of Bedrooms % One-bedroom 29% Two-bedroom 43% Three-bedroom 18% Four-bedroom 8% Five+ bedroom 2% (recent immigrants make up 30% of all households on the wait list) (Calgary Housing Company, 2010) The waitlist analysis also examined where households on the waitlist prefer to live, based on the locations of existing CHC buildings. The result is a fairly equal desire to live in all quadrants of the city. When analyzed further, by community, there are 19 P a g e

22 Number of Households six preferred communities: Bridgeland, Falconridge, Kensington, Killarney, Rundle, and Whitehorn. (Calgary Housing Company, 2010). Table 8: Waitlist demand by geographic sector (June 2010) Quadrant: % Northeast 27% Northwest 25% Southeast 24% Southwest 24% (Calgary Housing Company, 2010) The most common household types on the waitlist are lone-parent families (36%), singles (34%), and two-parent families (21%). A small proportion of the waitlist is comprised of seniors (3%) and couples without children (4%) (see Figure 6) Waitlist Demand by Household Type (CHC Waiting List, November 2011) Year Single Single Senior Couple Couple Senior Lone-Parent Two-Parent Family with Children Figure 6: Calgary Housing Company waitlist demand by household type, November P a g e

23 Key Findings - Waitlist for Non-Market Housing: The 2011 Survey of Non- Market Rental Housing in Calgary reported that in total, 25 agencies (81% of all agencies surveyed) maintain 52 waiting lists. In August 2011, 4,351 households were waiting for non-market housing. On the Calgary Housing Company wait list, the greatest demand by number of households was for 1- and 2-bedroom units, whereas the greatest demand by number of people was for 2- and 3-bedroom units. Homeless households make up 22% of the waitlist and 87% of homeless households require 1-bedroom units. Recent immigrants make up 30% of the waitlist and 43% of recent immigrant households require 2-bedroom units. Overall, the top preferred communities (where Calgary Housing Company has existing housing) are Bridgeland, Falconridge, Kensington, Killarney, Rundle and Whitehorn. Common household types on the waitlist are: lone-parents (36%), singles (34%) and two-parent families (21%). 21 P a g e

24 2.4 Homeowners in Housing Need By The City of Calgary s measure of housing need there are 33,585 owner households in need of affordable housing because they earn less than $44,000 and they spend 30% or more of gross household income on shelter. There are many more owner households in Calgary than renter households (279,600 owner households compared to 104,040 renter households) and this figure represents only 12% of all owner households (The City of Calgary, CNS, 2008). About half of overspending owner households are single-person households (15,755). However, large numbers of couple, two-parent, and lone-parent households are also represented (The City of Calgary, CNS, 2008). Table 9: Target-income (<$44,000) owner households that are spending 30% or more of gross income on shelter, as a percentage of all renter households in Calgary Type of Owner Household All Owner Households in Calgary Target Income Owner Households that are Overspending on Shelter Number Number Percent Individual Households 67,205 17, % Single person 56,345 15, % households Two or more 10,860 1, % unrelated individuals sharing a households Family Households 205,610 15, % Two-person 71,685 4, % families no children Two-parent 100,305 6, % families with children Lone-parent 19,705 4, % families with children Any type of family 13, % household that has unrelated persons sharing the household Multi-Family Households 6, % Households in which two or more families occupy the same private dwelling Totals 279,600 33, % (The City of Calgary, CNS, 2008) 22 P a g e

25 Key Findings - Homeowners in Need: As of 2006, there were 33,585 lowincome owner households overspending. About half of overspending owner households (15,755) are single-person households although large numbers of two-parent, couple and lone-parent households are also represented. 2.5 Affordability Challenges of Specific Populations This section will examine the affordability challenges of specific populations. Some of these populations compose a large portion of the population in need, while others have a high prevalence of housing need. According to the most current census data, the current population in need of affordable housing includes large numbers of individual households, households with the presence of a disability, families with children, and households headed by a senior (see Figure 7). Households with the presence of a disability, headed by a lone-parent or by a recent immigrant or Aboriginal household maintainer are also of interest because they have a high prevalence of housing need. It is important to note that these are not mutually exclusive categories. For example, many seniors also have disabilities. 23 P a g e

26 Number of Households 30,000 Number of Households in Need of Affordable Housing 25,000 24,955 20,000 15,000 14,135 10,000 8,490 6,900 5,000 2,800 2,555 0 Indivdiual households Presence of a disability in the household Families (1 & 2 parent) Primary Household Maintainer 65+ Type of Household Recent immigrant Primary Household Maintainer Aboriginal Primary Household Maintainer Renters in need Owners in need Figure 7: Number of households in need of affordable housing, various subpopulations (Statistics Canada, 2006) Aboriginals In a 2009 study, significantly more Aboriginals were concerned about not having safe housing conditions and not having enough money for housing than non- Aboriginal persons (The United Way and The City of Calgary, 2011). In 2006, 27 percent of Calgary households with an Aboriginal primary household maintainer (PHM) were in need of affordable housing compared to 18% of all Calgary households. In the 2008 Count of Homeless Persons, Aboriginal persons accounted for 15% of homeless persons in Calgary. This is significant because Aboriginal persons only account for 3% of Calgary s population (The City of Calgary, 2008). As of 2006, there were 3,525 Aboriginal Primary Household Maintainer households in need of affordable housing in Calgary, 2,555 of which were renter and 970 of which were owner households (The City of Calgary, CNS, 2008). 24 P a g e

27 Table 10: All target income (<$44,000) households with an Aboriginal PHM that are spending 30% or more on shelter as a percent of all households in Calgary with an APHM. Type of Household with an Aboriginal PHM All Aboriginal PHM Households in Calgary # # of Renter Households All Target Income Households with an Aboriginal PHM that are Overspending on Shelter # of Owner Households Total # (rent & own) % of Aboriginal PHM Households in need Individual 4,300 1, , % Households: Single person households 3,185 1, , % Two or more unrelated individuals sharing a households 1, % Family Households 8,485 1, , % Two-person families 2, % no children Two-parent families 3, % with children Lone-parent 1, % families with children Any type of family 1, % household that has unrelated persons sharing the household Multi-Family % Households Households in which two or more census families occupy the same private dwelling % Totals 13,060 2, , % (The City of Calgary, CNS, 2008) Of the Aboriginal PHM households in need of affordable housing, approximately half currently live in 2-bedroom units (see Figure 8). 25 P a g e

28 Number of Households Number of Households with an Aboriginal Primary Household Maintainer Earning less than $44,000 and are Overspending on Shelter 1, Bachelor units 1 Bedroom units 2 Bedroom units 3 Bedroom units Unit in which they currently reside 4 Bedroom units Owners Renters Figure 8: Number of target income households (<$44,000) with an Aboriginal primary household maintainer that are spending 30% or more of their gross income on shelter, and number of bedrooms in their current residence (Statistics Canada, 2006) Housing adequacy is a much smaller problem than housing affordability among Aboriginal PHM households. 3.6% of all Aboriginal headed households were in need of affordable and adequate housing compared to 1.4% of all Calgary households. Research indicates that overcrowding is not a significant issue for Calgary Aboriginal PHM households (The City of Calgary, CNS, 2010). 26 P a g e

29 2.5.2 Newcomers As of 2006, a total of 242,745 immigrants live Calgary. Over 23 % of these are recent immigrants, meaning that they arrived in Canada within the last five years. Recent immigrants are twice as likely to experience housing affordability challenges as Canadian-born renters. Barriers to affordable housing include discrimination, low-income, family size, and language difficulties and community knowledge (The City of Calgary, CNS, 2011). In a 2009 study, recent immigrants were more likely to report being concerned about not having safe housing conditions and not having enough money for housing than non-recent immigrants (The United Way and The City of Calgary, 2011). Recent immigrants have historically had a difficult time securing meaningful employment, and have faced language barriers and limited housing availability (The City of Calgary, CNS, 2011). As of 2006, there were 2,800 renter and 2,055 owner households with a recent immigrant primary household maintainer (PHM) in need of affordable housing. The majority of these were family households, most of which were two-parent families with children (The City of Calgary CNS, 2009). 27 P a g e

30 Table 11: All target income (<$44,000) households with a recent immigrant primary household (RIPHM) maintainer that are spending 30% or more of their gross income on shelter as a percentage of all households in Calgary with a RIPHM Type of Household with an RIPHM All RIPHM Househo lds in Calgary Number All Target Income Households with an RIPHM that are Overspending on Shelter No. Renter Househol ds No. Owner Household s Total No. (rent & own) Perce nt Individual Households: 2, % Single person households 1, % Two or more unrelated individuals % sharing a households Family Households 12,355 2,035 1,715 3, % Two-person families no children 2, % Two-parent families with children 8,340 1,190 1,265 2, % Lone-parent families with children % Any type of family household that has unrelated persons sharing the household Multi-Family Households % % Households in which two or more families (with or without additional unrelated persons) occupy the same private dwelling Totals 15,255 2,800 2,055 4, % (The City of Calgary CNS, 2009) The majority of renter households with a recent immigrant PHM currently reside in 1- or 2-bedroom units, whereas the majority of owners currently reside in 3- or 4- bedroom units (see Figure 9). 28 P a g e

31 Number of Households Number of Households with a Recent Immigrant Primary Household Maintainer that earn less than $44,000 and are Overspending on Shelter 6,000 5,000 4,000 3,000 2,000 1,000 Renters Owners 0 Bachelor units 1 Bedroom units 2 Bedroom units 3 Bedroom units Unit in which they currently reside 4 Bedroom units Figure 9: Number of target income households with a recent immigrant primary household maintainer that are overspending on shelter, and number of bedrooms in current residence (Statistics Canada, 2006) Of all the recent immigrant headed households in Calgary, 2.0% are experiencing affordability and adequacy challenges (The City of Calgary CNS, 2008) compared to 1.4% of all Calgary households. Households with a recent immigrant PHM that face affordability challenges experience more crowding than the general population. The crowding index for all recent immigrant headed households is The crowding index for all recent immigrant renter households is 1.09 (The City of Calgary CNS, 2009). Any value greater than 1.0 represents overcrowding. In a 2009 survey of 289 newcomers, most respondents resided with spouses (60%) and children (58%). Only 4% lived with parents, 3% with siblings and 2% with inlaws. House sharing was very common in the sample: 44% of respondents reported sharing housing with non-family members. Most often, they reported sharing the kitchen, living room, bathroom and dining room (Calgary Homeless Foundation, University of Calgary, United Way, and The City of Calgary, 2008). Respondents reported experiencing difficulties finding or sustaining housing as a result of: a low income (33%), no job (21%), language barriers (24%), age of children (20%), lack of references (18%), lack of identification documents (17%), family size (16%), ethnicity/race (13%) and lack of credit history (13%) (Calgary 29 P a g e

32 Homeless Foundation, University of Calgary, United Way, and The City of Calgary, 2008) Temporary Foreign Workers 18, 478 temporary foreign workers (TFWs) were present in Calgary as of December 1, In 2010, 8,193 TFWs entered Calgary. TFWs face unique challenges regarding housing. Under the law, employers must provide adequate housing for TFWs. Sub-standard housing arrangements, often at excessive rents owed to the employer, are among the many difficulties and abuses reported by TFWs (Alberta Federation of Labour, 2009). Although TFWs face housing challenges, they are not eligible for The City s affordable housing because of their residency status (The City of Calgary) Persons with Disabilities In a 2009 survey, Calgarians with disabilities were four times as likely to use subsidized housing during the previous year as respondents without a disability (The United Way and The City of Calgary, 2011). Statistics Canada defines disabilities as difficulties with daily activities and the reduction in the amount or kind of activities due to physical or mental or other health problems that have lasted or are expected to last six month or more. In 2006, there were 157,615 individuals in Calgary who had disabilities, accounting for 16.1% of the population (The City of Calgary CNS, 2010) (The City of Calgary, Social Policy and Planning, 2010). Of the 31,345 renter households in Calgary with the presence of a disability in the households (PDIH), 45.1% earn less than $44,000 and are currently spending 30% or more of their gross income on housing. This amounts to 14,135 households, the majority of which are single-person households. (The City of Calgary, CNS, 2008) As Calgary s population ages, the number of persons with disabilities is expected to rise (The City of Calgary, CNS, 2011). 30 P a g e

33 Table 12: Households with the presence of a disability that earn less than $44,000 and are spending 30% or more of their gross income on shelter, as a percentage of all presence of disability renter households in Calgary Type of Renter Household All PDIH Renter Households in Calgary Target Income PDIH Renter Households that are Overspending on Shelter # # % of all PDIH Renter Households Individual Households 16,060 9, % Single person 13,275 8, % households Two or more unrelated 2,785 1, % individuals sharing a households Family Households 14,785 4, % Two-person families 4,775 1, % no children Two-parent families 4,240 1, % with children Lone-parent families 3,715 1, % with children Any type of family household that has unrelated persons sharing the household 2, % Multi-Family Households % Households in which tow or more families (with or without additional unrelated persons) occupy the same private dwelling Totals 31,345 14, % (The City of Calgary, CNS, 2008) The majority of renter households with the presence of a disability in the household currently reside in a 1- or 2-bedroom unit, whereas the majority of owners currently reside in a 2- or 3-bedroom unit (see Figure 10). 31 P a g e

34 Number of Households Number Households with the Presence of a Disability in the Household that earn less than $44,000 and are Overspending on Shelter 6,000 5,000 4,000 3,000 2,000 1,000 0 Bachelor units 1 Bedroom units 2 Bedroom units 3 Bedroom units Unit in which they currently reside 4 Bedroom units Renters Owners Figure 10: Number of target households with the presence of a disability in the household that are spending 30% or more of their gross income on shelter and number of bedrooms in current residence (Statistics Canada, 2006) Of all households with the presence of a disability, 2.2% are in need of both affordable and adequate housing, as compared to 1.4% of all Calgary households (The City of Calgary, CNS, 2008). Among households with the presence of a disability, overcrowding does not appear to be an issue (The City of Calgary, CNS, 2009). Accessible housing is designed so that all necessities in the home such as kitchens, bathrooms and bedrooms are readily accessible and usable by people of all ages and mobility levels including persons with disabilities. Adaptable housing is designed for use by the general public and has features that can be easily modified or adapted to the special needs of those with disabilities at a later date (e.g. removable cupboards in a kitchen or bathroom to create knee space for wheelchair access if necessary). Universal design refers to designs that are inherently accessible to people both with and without disabilities. Households with the presence of a disability may require housing that is accessible, adaptable, or universal depending on their needs and household composition Seniors In 2009, Calgary s seniors were much less likely to report being concerned about not having enough money for housing than middle-aged and young adult respondents (The United Way and The City of Calgary, 2011). As more people enter their senior years without adequate retirement income and/or savings for retirement and demand for affordable and accessible housing rises, seniors may come to feel more pressure related to housing cost. 32 P a g e

35 Generally, seniors prefer to age in place, meaning they want to stay in their home or community as they age. To do this, they need affordable and accessible transportation and housing, as well as access to amenities, support services, and information. Rising utility costs, property taxes and transportation costs make it difficult for some seniors to stay in their homes (The City of Calgary, CNS, 2011). In 2006, 14.9% (6,940) of seniors in Calgary spent 30% or more of their gross household income on shelter costs (The City of Calgary, CNS, 2009). In Calgary there are 6,900 senior headed renter households and 5,470 senior headed owner households in need of affordable housing (The City of Calgary, CNS, 2009). Of senior-headed households in need of affordable housing, 77% are one-person households and 22% are couple households Lone-Parents In 2006, 29,915 Calgary households were headed by a lone-parent (The City of Calgary, CNS, 2008). Lone-parent households typically face greater financial strains than other households due to the high costs associated with childcare, need for larger and more expensive housing, and limited number of household earners. In Calgary, 44.8% of lone-parent renters and 21.2% of lone-parent owners, or a total of 8,745 lone-parent households earn less than $44,000 and are overspending on shelter (The City of Calgary, CNS, 2008). Of the renter lone-parent households in need of affordable housing, 495 or 4.8% are also in need of adequate housing (The City of Calgary, CNS, 2008). Key Findings -Housing Affordability Challenges of Specific Populations: Of the 38,610 Calgary renter households in need of affordable housing, 14,135 or 36.6% are households with the presence of a disability, 6,900 or 17.9% are seniors, 4,575 or 11.8% are lone-parent households, 7.3% or 2,800 have a recent immigrant primary household maintainer and 2,555 or 6.6% have an Aboriginal primary household maintainer. These subpopulations are considered key because they either compose a large portion of the population in need of affordable housing or have a high rate of housing need. 33 P a g e

36 3.0 Future Housing Need 3.1 Estimate of Growth of Housing Need From , the percentage of households in need of affordable housing has remained relatively steady at an average of 18.1% (The City of Calgary, CNS, 2010). Taking population projections from the Calgary & Region Economic Outlook into consideration, if Calgarians maintain an average household size of 2.5 people, and the proportion of Calgary households in need of affordable housing remains constant at approximately 18%, the number of households in need of affordable housing will continue to grow to 82,296 in 2014, 84,528 in 2016 and 86,832 in This represents an increase of approximately 1,200 households in need annually. In 2006, 53% of households in need of affordable housing were renters. Assuming that this proportion holds steady, the number of households in need of affordable rental housing will be 43,617 in 2014, 44,800 in 2016, and 46,021 in The predicted rate of increase is roughly 650 renter and 550 owner households per year (see Table 13 and Figure 11) (actual) 2012 (forecast) 2014 (forecast) 2016 (forecast) 2018 (forecast) Table 13: Forecast housing need for 2012, 2014, 2016 and 2018 Total Population (individuals) Average Households size Total Population (households) Number of households in need of affordable housing Number of renter households in need of affordable housing Number of owner households in need of affordable housing ,867 72,195 38,610 33,585 1,110, ,000 79,920 42,358 37,562 1,143, ,200 82,296 43,617 38,679 1,174, ,600 84,528 44,800 39,728 1,206, ,400 86,832 46,021 40,811 Population forecasts (The City of Calgary, CNS, 2011) 2006 Actual Number of Households in Need (The City of Calgary, CNS, 2008) 34 P a g e