If your household income is $60,000 a year, you can afford to pay $1,500 a month in rent.
Says who?
The people who define “affordable housing” — which can include government officials and developers. They often use the Canadian Mortgage and Housing Corporation’s guideline of 30 per cent of your monthly gross income. Others say affordable rents are those going at 30 per cent below market value.
So that’s the simple answer to retiree Katie McInnis’s question for episode 14 of our CBC podcast: “How is this affordability determined and who determines it?”
But, of course, there’s much more to it. P.E.I.’s vacancy rate was 1.1 per cent in 2023, tied for lowest in the country. It’s difficult to find any housing, let alone housing that’s affordable.
We asked many people in Charlottetown what they considered to be an affordable rent for a two-bedroom unit, and the majority of responses ranged from about $1,000 to $1,200. Good luck with that, says anyone who’s looked on Kijiji lately.
Cory Pater of P.E.I. Fight for Affordable Housing says 25 per cent of gross income would be a more reasonable benchmark for what is considered an affordable rent.
According to the 2021 census, the average household income on P.E.I. that year was $60,000. But not everyone making $60K is in the same financial situation. Some have student loan debt. Some have multiple kids who want to play soccer.
