Money: Minimum-wage workers can’t afford rent in most of Canada, study shows - PressFrom - Canada
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MoneyMinimum-wage workers can’t afford rent in most of Canada, study shows

10:26  18 july  2019
10:26  18 july  2019 Source:   thestar.com

In the unequal world of work, Canada's a bit more egalitarian

In the unequal world of work, Canada's a bit more egalitarian Many countries are seeing wages become increasingly unequal, with the middle class losing ground, but Canada bucks that trend, according to the International Labour Organization. The U.S. and U.K. are seeing wages become increasingly unequal, with the middle class losing ground, but Canada bucks that trend, according to the ILO. The UN agency found the top 10 per cent of Canadian wage earners make about 24 per cent of total wages, a number almost unchanged from 2004 to 2017, the period measured. That's lower than most of the world, including Britain with 32 per cent going to top earners and the U.S. with 33 per cent.

Learn more . You're viewing YouTube in Russian. You can change this preference below. A new report reveals that there is not a single American state where a minimum wage worker can afford ABOUT THE JIMMY DORE SHOW : The Jimmy Dore Show is a hilarious and irreverent take on news

A minimum - wage worker can ’ t afford a 2-bedroom apartment anywhere in the U.S. It gets worse in many metropolitan areas. San Francisco, Marin and San Mateo counties top the list of most expensive jurisdictions, where one would need to make .02 an hour to afford a modest two-bedroom

Minimum-wage workers can’t afford rent in most of Canada, study shows© Rene Johnston Erik Eastmure is a Toronto cook struggling with housing affordability — an epidemic among lower-wage workers in Canada but particularly pronounced in the GTA.

Erik Eastmure, 24, loves his job as a cook in an up-and-coming Riverdale eatery. He is less enamoured with spending half his monthly take-home pay, about $1,000, on rent and utilities for a house he shares with two roommates.

Eastmure earns $16 an hour plus tips — a decent wage in the food service industry, he says. But it isn’t enough in Toronto to buy him the privacy he craves and, after rent, groceries and other essentials, there isn’t a lot left to enjoy the city, buy clothes or even visit to the dentist.

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A person working a full-time minimum - wage job will find it virtually impossible to rent an affordable home Americans earning minimum wage do not need a study to know how difficult things are. The most expensive counties and metropolitan areas in the US are indeed maritime, or thereabouts

Many minimum - wage workers can ' t even afford a modest one-bedroom apartment, according to the National Low Income Housing Coalition's annual report. A minimum - wage worker needs 2.5 full-time jobs to afford a one-bedroom apartment in most of the US.

“There are things I want to buy,” he says. “My laptop just broke; I don’t know how I’m going to afford a new laptop.”

He’s among the quarter of Canadians who earn within $3 of their provincial minimum wage. In Ontario, that’s $14 an hour.

A new report by the Canadian Centre for Policy Alternatives (CCPA) shows the breadth of the country’s rental crisis for full-time (40 hours a week) minimum-wage earners. This crisis, the study’s author says, stems largely from a dearth of new purpose-built rentals since the early 1990s, when the federal government stopped providing tax credits to build them.

The study found that a one-bedroom apartment would be affordable to full-time minimum-wage workers in only 70 of 795 Canadian neighbourhoods. A two-bedroom rental would be unaffordable in all but 24 of those neighbourhoods; that’s 3 per cent. With the exception of St. Catharines and Sudbury, all the affordable neighbourhoods were located in smaller Quebec cities.

These are the only 2 Ontario neighbourhoods where rent is affordable on minimum wage

These are the only 2 Ontario neighbourhoods where rent is affordable on minimum wage The entirety of the GTA is priced out.

Many minimum - wage workers can ' t even afford a modest one-bedroom apartment, according to the National Low Let's look at the math: If a worker holds two full-time minimum wage jobs, they'd be earning .50 an hour total — still under the .90 needed to afford rent and have 70% of your

If you make minimum wage , you can ’ t afford to rent a two-bedroom apartment in any state in the union. That’s the harsh but honest truth in a report issued last week by the The NLIHC report states that a worker must earn at least .30 per hour to afford a fair-market rent two-bedroom apartment.

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In Toronto, it’s worse. Workers need to earn about $34 an hour on average to afford a two-bedroom apartment — the kind of space the CCPA says provides modest accommodation for different types of households.

The study, Unaccommodating: Housing Rental Wage in Canada, is based on October 2018 rents and wages and defines affordable as no more than 30 per cent of before-tax income spent on housing. It uses an average rent of $1,440 for a one-bedroom unit in the Toronto area and $1,750 for a two-bedroom apartment, based on rates for condos and purpose-built rentals. Those averages include both occupied and unoccupied units, so a new renter would likely face substantially higher costs.

Rent in Ottawa out of reach for low-income earners, report finds

Rent in Ottawa out of reach for low-income earners, report finds For workers earning minimum wage, Ottawa is one of the least affordable places in Canada to rent an apartment, according to a new report. The report, published Thursday by the Centre for Canadian Policy Alternatives (CCPA), calculates the rental wage — the hourly wage needed to rent an average two-bedroom apartment without spending more than 30 per cent of a tenant's earnings — in communities over 10,000 people. In Ottawa, where the average rent for a two-bedroom unit is $1,301, an employee earning Ontario's $14 per hour minimum wage would have to work 75 hours per week to afford the rent.

Studies have shown that paying workers higher wages actually boosts productivity, lessens turnover and galvanizes the economy. Tell Us What You Think. Do you think higher wages would help boost the economy? We want to hear from you! Leave a comment or join the discussion on Twitter.

can a full-time minimum wage worker afford a one-bedroom rental home at fair market rent ." (We previously cleared up the definition of "fair market rent " in a fact-check of a Facebook graphic.) The underlying study she referenced doesn’t say that a minimum wage worker can ’ t afford any

CCPA researcher David Macdonald calls the 30 per cent measure a Canadian standard that accounts for other life expenses, “including taxes and everything else you’ve got to buy — diapers, transit and so forth.”

The Ottawa research group focused on two-bedroom units, which comprise about half of all apartments in Canada. In Toronto, one- and two-bedroom apartments each comprise 42 per cent of the total units. Studios and three-bedrooms make up the rest.

“A sole income earner working full time should be able to afford a modest two-bedroom apartment for their family in a country as rich as Canada,” says the report. “But in most Canadian cities, including Canada’s largest metropolitan areas of Toronto and Vancouver, there are no neighbourhoods where it is possible to afford a one- or two-bedroom unit on a single minimum wage.”

Among the study’s most alarming findings:

  • In 31 of 36 Canadian metropolitan areas, there are no neighbourhoods where two-bedroom apartments are affordable to minimum-wage earners. Only 13 had affordable one-bedroom units.
  • A minimum-wage earner would have to work 96 hours a week to afford a two-bedroom apartment in Toronto — more than two full-time jobs. In Vancouver, they would need to work 112 hours a week.
  • Toronto had the second-highest wage requirement for a two-bedroom apartment. A tenant would need to earn $33.70 an hour in order to keep rent within 30 per cent of their earnings. Vancouver was slightly worse, requiring a $35.43 an hour wage, followed by Victoria, Calgary and Ottawa.
  • On average, a Canadian worker needs to earn $20.20 an hour to afford a one-bedroom apartment. That is well above the highest provincial minimum wage, which is $15 an hour in Alberta.

While none of Toronto’s 117 neighbourhoods is affordable for a minimum-wage earner, a fifth of Montreal’s 97 neighbourhoods have one-bedroom units within reach of those workers. There were, however, no affordable two-bedroom units there either. Workers earning $15 an hour — $3 above the 2018 minimum wage in Montreal — could afford to rent a two-bedroom apartment in about half the city’s neighbourhoods.

$22/hr is average wage needed to afford a two-bedroom apartment in Canada: report

$22/hr is average wage needed to afford a two-bedroom apartment in Canada: report “But it's much more in big cities like Vancouver and Toronto.” The report calculates rental wages by breaking down the hourly wage that full-time minimum wage workers would need to earn in order to afford rent for an average one- or two-bedroom apartment without spending more than 30 per cent of their earnings. Your browser does not support this video require(["binding"], function (binding) { binding("wcVideoPlayer", "#video_player_61373e07-890d-4f3a-99d1-50406c342440").

Washington state has the highest minimum wage in the nation at .32. Can the state's low- wage workers can meet their basic needs without assistance? Economics correspondent Paul Solman explores the quality of life for a baggage handler at the Seattle-Tacoma Airport and an employee of

Harvard study : Millions of Americans can ' t afford to pay for housing. The percentage of American full-time minimum - wage workers who can afford to rent a one-bedroom apartment in any U.S. state without being what the government calls "burdened" is so vanishingly small — less than one percent

Montreal has a greater concentration of purpose-built rentals than Toronto, Macdonald explained.

“There are two (Montreal) neighbourhoods with 40,000 units each of rental housing. The best you can do in Toronto is 10,000 units per neighbourhood,” he said.

The three Toronto-area neighbourhoods with the most rentals, including condos, are Downsview, Mount Pleasant West and Mississauga Centre. But none of them is especially affordable, requiring a $28- to $43-per-hour wage — or at least 80 hours a week of work at minimum wage — for a two-bedroom unit.

The study found the most affordable Toronto-area neighbourhoods in Scarborough would require a tenant to earn between $23 and $25 an hour, and they don’t have a lot of apartments.

Renters like Eastmure can barely dream of home ownership. Even staying in the city seems unsustainable, he said.

“I’ve always just considered myself lucky enough to have an apartment. I know there are people a lot worse than me,” said Eastmure.

But, he said, “With the cost of living in the city, I just don’t think I can be here long term.”

Macdonald hopes the study raises the profile of the third of Canadians who rent ahead of the fall federal election.

“It’s not purely about trying to get millennials into houses,” he said.

Boosting the supply of rentals requires public policy, he argued. Left on its own, the market will build small condos for investors.

Fewer housing options have Torontonians moving less, report says

Fewer housing options have Torontonians moving less, report says Canadians are moving less than they did a decade ago with the Toronto area experiencing the most dramatic decline in mobility, according to a new study that shows a 6.3 per cent drop in changes of address between 2006 and 2016. The finding, based on Census data, shows Calgary and Vancouver experienced a 5.7 per cent and a 3.8 per cent reduction in moves, respectively, followed by Ottawa, Montreal and Edmonton. Although tenants are typically more mobile than homeowners, and are also moving less often, owners rather than renters showed the greatest change in moving habits, according to a “rudimentary” study by the Ryerson University Centre for Urban Research and Land Development

Under the Canadian Constitution, the responsibility for enacting and enforcing labour laws, including the minimum wage , rests with the ten provinces as well as the three territories which have been

The minimum wage in Hawaii rose to .10 an hour this year. It gets worse in many metropolitan areas. San Francisco, Marin and San Mateo counties top the list of most expensive jurisdictions, where one would need to That means even those making above minimum wage struggle to afford rent .

“That’s not good for people trying to live and work in Toronto but it is good for investors, whether they’re Canadian or whether they’re foreign,” said Macdonald.

The combined effect of provincial and federal programs is starting to renew the supply of affordable rental and purpose-built rental homes, he said.

“We’ve reached a new high-water mark since 1993 with just over 15,000 new affordable housing units (a year),” said Macdonald, adding that it is still fewer than the 20,000 units a year of affordable housing that was built in the 1970s and 1980s.

“Since the (Conservative Brian) Mulroney government in the early 1990s basically cut the entire Canada Mortgage and Housing Corp. affordable-housing budget, it’s never really recovered,” he said.

The CCPA study is the latest to assess the Toronto region’s housing affordability challenges. A recently published Toronto Star analysis showed that the typical median-income family cannot afford to own a median-priced single-family home in any of 140 city neighbourhoods. It found that even the least expensive real estate in Mount Dennis requires a household income of more than $100,000 to qualify for a $616,500 home.

An analysis by the Toronto Region Board of Trade last month showed that even paramedics and construction workers earning middle-income wages in the $80,000 to $90,000 range were struggling to afford a home.

The Advocacy Centre for Tenants Ontario reported last year that 46.9 per cent of Toronto tenants pay more than 30 per cent of their income on rent.

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--A National Low Income Housing Coalition study shows that no one working a full-time job at minimum wage in the US can afford a two-bedroom apartment in

A state-by-state report shows workers cannot afford rent in any state with a 40-hour workweek. Affordability is defined by spending 30% of income on Perhaps more surprising is that the inability to afford rent is not limited to big cities with high housing costs. A full-time minimum - wage earner can ' t

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With files from Emily Mathieu

Tess Kalinowski is a Toronto-based reporter covering real estate. Follow her on Twitter: @tesskalinowski

My Staff Get More Than Minimum Wage, And Guess What? My Business Is Thriving..
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