What is Affordable Housing?

Affordable housing is spending less than 30 per cent of pre-tax earnings on housing, and the ability to carry an 80 per cent mortgage on an average priced home — according to the CMHC.

The gap between the cost of owning a home and the ability of a first-time home buyer to afford one is increasing each year. Indicators of this affordability gap, according to Generation Squeeze, are:

• Average home prices would need to fall $307,000 – over half of the current value – to make it affordable
  for a typical young person to manage an 80 per cent mortgage at current interest rates.
• Or typical full-time earnings would need to increase to $109,000/year – more than double current levels. Based on the last decade, actual earnings are expected to be flat.
• It takes 15 years of full-time work for the typical young person to save a 20 per cent down payment on an average priced home – 10 more years than when today’s ageing population started out as young people.

To read the full report by Generation Squeeze, please click the button below:

RAHB is committed to ending the affordability gap by partnering with affordable housing organizations like Habitat for Humanity Hamilton and Habitat for Humanity Burlington.

To learn more about RAHB’s work with Habitat for Humanity, please click the buttons below: