Report: Nearly one in five Calgarians can’t afford housing

Key Takeaways:

• The report, published every five years, shows roughly 84,600 households earning less than 65% of Calgary’s median income spend more than 30% on housing costs.
• The data is based on conditions in 2021 and the city suspects the issue has gotten worse.
• An annual income of $84,000 is needed to adequately afford average market rent in 2023. That number has increased from $67,000 in 2022.

The Whole Story:

The city of Calgary’s latest Housing Needs Assessment report shows nearly one in five Calgary households can’t afford their housing and the issue is likely getting worse. 

The Housing Needs Assessment report uses quantitative data from the Federal Census, the city of Calgary Corporate Economics and Canada Housing and Mortgage Corporation.

Published every five years, the information in the assessment informs the city’s affordable housing policies. It also helps the city plan its work with housing providers who build new developments and with other orders of government who fund them.

The latest report shows at least 84,600 or almost one in five Calgary households didn’t have enough money to pay for housing in 2021. The city noted that based on current housing conditions, it is expected that the numbers in 2023 are almost certainly even higher.

“Calgary is experiencing a housing crisis. The latest data published in the Housing Needs Assessment shows us that an increasing number of Calgarians are struggling with housing affordability,” said Tim Ward, manager of housing solutions. “The findings in the assessment also highlight that the housing crisis is affecting a wide range of Calgarians including those looking to buy or rent a home, and those that are in greatest need of affordable housing supports.”

Based on recent market housing data, the median cost to buy a detached home has increased in price by 37% in the last three years. For Calgarians looking to buy their first detached home in 2023, an annual household income of $156,000 is required to adequately afford it, meaning they would not be spending more than 30% of their income before tax on housing.

To adequately afford the median purchase cost of an apartment in 2023, an annual household income of $70,800 is needed for that new home-buyer. For those looking to rent, an annual income of $84,000 is needed to adequately afford average market rent in 2023. That number has increased from $67,000 in 2022.

Based on Calgary’s forecasted population growth and historical rate of housing need, the number of households in need of affordable housing is expected to reach close to 100,000 by 2026.

Calgary presents the findings of their report:

The city is currently developing a housing strategy that names specific actions to address the issue.

The strategy includes five sought outcomes:

• Increase housing supply
• Support affordable housing providers
• Support The city’s housing subsidiaries
• Ensure housing choices meet the needs of equity-deserving populations
• Meet the affordable housing needs of Indigenous people living in Calgary

It incorporates the 33 actions from the Housing and Affordability Task Force, a handful of additional new actions and 38 previously council-approved actions for work that’s underway. The strategy will be reviewed by members of council at the Community Development Committee meeting on Sept. 14.