A report released earlier this month by the Federation of Canadian Municipalities (FCM) is sounding the alarm on the shortage of rental housing, which threatens Canada’s economic recovery.
“Renewed investment in rental housing is crucial to protect Canada’s economic recovery,” said FCM president Karen Leibovici. “It will create new construction jobs, give cash-strapped Canadians more affordable housing options, and ease pressure on the home-ownership market where mortgages account for 68 per cent of skyrocketing household debt.”
The report finds the shortage of available rental housing is worsening at the same time that more Canadians are being priced out of home ownership. Data collected from 27 urban and suburban communities show household income failing to keep up with homeownership costs, which have risen three times faster than income since 2005.
At the same time, the number of rental units has declined and the cost of renting in the communities tracked has grown by more than 20 per cent since 2000. Although one third of Canadians are renters, less than 10 per cent of new housing starts in those communities were intended for the rental market between 2001 and 2010, while existing rental units were converted to condominiums or allowed to deteriorate.
To download the report in full, click here
Related news article in the Huffington Post: