Correlation Between Rent Increases and Percentage of People Spending 30 Per Cent or More on Monthly Rent

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This map is based on the percentages of median shelter cost increases in Ottawa. The darker colours represent higher rent increases, while the lighter colours represent lower rent increases. You can click on the different areas to see graphs that better represent the rent increases, and use the search function to search for certain neighbourhoods in the Ottawa area.

Some areas are blank, which is either because there is no data for them, or they are areas without inhabitants.

Median shelter cost rose more than 15 per cent in Ottawa between 2011 and 2016, according to an analysis of the latest Canada census data. According to the same data, the number of Canadians spending more than 30 per cent of their income on shelter cost has also increased.

For renter households, shelter costs include, where applicable, the rent and the costs of electricity, heat, water and other municipal services.

The Canada Mortgage and Housing Corporation considers housing affordable if the shelter costs are less than 30 per cent of household income.

The median differs from the average, and is just the middle value in a set of numbers. In this case, the median is the middle percentage between the highest and lowest numbers in rent increases in Ottawa.

These trends were most common in two types of areas in Ottawa: areas closest to the downtown area, and growing suburbs on the outskirts of the city. Suburban areas like Barrhaven and Orleans as well as more urban areas like the Capital region and Westboro reported the highest per cent increases, with most of the downtown areas reporting slight increases as well.

According to Anne-Marie Shaker, a senior market analyst at the Canada Mortgage and Housing Corporation, when choosing a place to rent, there are a variety of factors to consider: “people choose different accommodations depending on their preferences for things such as area, prices, commute to work, family size etc. and their preferences for rental versus homeownership.”

For Cassandra Maier, a French student at Carleton University, she made the decision to move downtown because it meant a shorter commute time from her job as a tour guide at the Canadian Mint, from her parents’ house in Orleans. She moved to Lees Avenue, close to Nicholas Street in downtown Ottawa. In this area, about 49 per cent of renters spent more than 30 per cent of their income on shelter costs.

The median rent in the Lees area is about $1200. Cassandra says that she paid $800 per month in her shared apartment. Although Maier made more than minimum wage in her job as a guide for the Canadian Mint, she was still spending the majority of her paycheques on shelter costs. “I was spending about 40 per cent of my income just on rent,” Maier confessed. “It was a little crazy.”

Cassandra Maier, a Carleton University student, rented an apartment on Lees Avenue, but the high rent prices forced her to leave at the beginning of the summer. Photo provided by Cassandra.

According to a document distributed by the Advocacy Centre for Tenants Ontario, Ontario renters have a much lower median income level, $36,000 annually, less than half that of homeowner households, who have a median income level of $81,000 annually. In the same document, renter households are also more likely to spend more than 30 per cent of their income on housing costs. In Ottawa, renter households make up about 34 per cent of all homes, according to Statistics Canada data.

High rent costs can be due to location and demand. As Shaker explains that “prices could be rising in some areas because demand is outpacing supply in that particular area.”

So what does the future climate look like for Ottawa renters?

In 2016, Ontario landlords were allowed to raise their rents by 2 per cent, while in 2017, there is a slight decrease, with them being allowed to raise their rent by 1.5 per cent. The average rent increase between 2011 and 2017 was 1.7 per cent, making the 2017 number slightly below the average price raise. The amount to increase the rent by each year is calculated using the Ontario Consumer price index, which measures costs of food, energy, clothing, transportation and other items to determine how much of an increase is appropriate.

Despite the average increase in rent raises, would Cassandra still recommend her apartment to a friend? Yes, but with one condition. “I would recommend it for someone who had or was making enough money!” Cassandra declared. “It just got too expensive after a while.”

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