New index shows state of housing costs for renters in the South of Fraser

Ensuring that everyone can afford a place to live is one of the biggest challenges that our region has ever faced. Whether looking to own a home, rent at market rates, or get into some form of subsidized housing, most people are feeling the pressure.

The Canadian Rental Housing Index is put together by the BC Non-Profit Housing Association. It looks at rent affordability throughout Canada. The index was recently updated with the latest census data, and includes information at the municipal, regional, provincial, and federal levels. What does the index say about South of Fraser communities?

Langley City has some of the lowest household incomes in Metro Vancouver. The following chart shows the average and median gross incomes for renter households in 2016.

Average & Median Incomes in 2016: The average and median gross incomes of renter households. Select chart to enlarge.

The next chart shows the average monthly rent and utility costs in 2016.

Average Monthly Rent and Utilities in 2016: Includes heat, hot water, and electricity. Select chart to enlarge.

Langley City had some of the lowest housing costs in the South of Fraser, but because we also have the lowest household income levels, close to half of Langley City renter households are spending more than 30% of their income on housing. This means that these households are overspending on housing. Between 2016 and this year, the cost of housing has increased, so I would expect that the number of renter households that are overspending on housing costs is now larger.

Overspending in 2016: Households spending more than 30% of their before-tax income on rent and utilities are generally considered to be living in unaffordable situations. Select chart to enlarge.

Transportation is a critical component when it comes to affordability. In communities where driving is the only option, transportation costs can equal a third of housing costs. While in community where walking, cycling, and public transit are viable options, transportation costs can equal about a quarter of housing costs.

Transportation costs are not presented in this index. In the future, it would be good to see transportation costs also included.

The provincial government has recently put measures in place to address creating more affordable transportation and housing options. It will be interesting to see what impacts these policies will have over the next several years.