POVERTY AND HOUSING AFFORDABILITY IN ALBERTAS 7 CITIES RON - PowerPoint PPT Presentation

POVERTY AND HOUSING AFFORDABILITY IN ALBERTA’S 7 CITIES RON KNEEBONE AND MARGARITA WILKINS THE SCHOOL OF PUBLIC POLICY APRIL 19, 2017 (UNDER CONSTRUCTION: PLEASE DO NOT CITE WITHOUT PERMISSION) www.policyschool.ca

OUR GOAL • To compare the cost of living for a poor person or family in each of Alberta’s 7 Cities • To propose an idea for responding to what we have found www.policyschool.ca

THE APPROACH • We use social assistance income to represent the income level of those experiencing poverty • SA income is a policy variable • SA income is less than the average after-tax earned income of the lowest quintile of income earners and so well represents the income of the very poor www.policyschool.ca

THE INCOME OF THE VERY POOR Social-Assistance Income and After-Tax Income for Lowest Quintile, 2011 Lowest Quintile Lowest Quintile Social-Assistance After-Tax Social-Assistance After-Tax Income, Couple Province Average Income, Income, Single Average Income, with Two Two or More Employable Unattached Children Persons Individuals 22,005 27,200 7,947 7,000 British Columbia 22,297 36,700 7,248 10,400 Alberta Saskatchewan 24,161 31,000 8,891 11,800 21,662 29,400 6,922 8,200 Manitoba Ontario 24,631 29,600 8,104 7,500 23,271 28,000 7,560 8,300 Quebec 20,162 26,700 6,796 9,000 New Brunswick Nova Scotia 21,919 28,300 6,954 8,300 25,892 26,400 7,152 11,400 Prince Edward Island 23,072 27,100 10,071 9,300 Newfoundland & Labrador Source: Cansim Table 2020703 and the Caledon Institute. www.policyschool.ca

THE INCOME OF THE VERY POOR Social-Assistance Income and After-Tax Income for Lowest Quintile, 2011 Lowest Quintile Lowest Quintile Social-Assistance After-Tax Social-Assistance After-Tax Income, Couple Province Average Income, Income, Single Average Income, with Two Two or More Employable Unattached Children Persons Individuals 22,005 27,200 7,947 7,000 British Columbia 22,297 36,700 7,248 10,400 Alberta Saskatchewan 24,161 31,000 8,891 11,800 21,662 29,400 6,922 8,200 Manitoba Ontario 24,631 29,600 8,104 7,500 23,271 28,000 7,560 8,300 Quebec 20,162 26,700 6,796 9,000 New Brunswick Nova Scotia 21,919 28,300 6,954 8,300 25,892 26,400 7,152 11,400 Prince Edward Island 23,072 27,100 10,071 9,300 Newfoundland & Labrador Source: Cansim Table 2020703 and the Caledon Institute. www.policyschool.ca

THE INCOME OF THE VERY POOR Social-Assistance Income and After-Tax Income for Lowest Quintile, 2011 Lowest Quintile Lowest Quintile Social-Assistance After-Tax Social-Assistance After-Tax Income, Couple Province Average Income, Income, Single Average Income, with Two Two or More Employable Unattached Children Persons Individuals 22,005 27,200 7,947 7,000 British Columbia 22,297 36,700 7,248 10,400 Alberta Saskatchewan 24,161 31,000 8,891 11,800 21,662 29,400 6,922 8,200 Manitoba Ontario 24,631 29,600 8,104 7,500 23,271 28,000 7,560 8,300 Quebec 20,162 26,700 6,796 9,000 New Brunswick Nova Scotia 21,919 28,300 6,954 8,300 25,892 26,400 7,152 11,400 Prince Edward Island 23,072 27,100 10,071 9,300 Newfoundland & Labrador Source: Cansim Table 2020703 and the Caledon Institute. www.policyschool.ca

THE ISSUE • Social assistance varies by family characteristic but the amount received is the same regardless of where the family lives in the province • But the cost of living can vary significantly by area of the province • By how much? • What is the implication? • Is there another approach? www.policyschool.ca

OUR APPROACH • We begin by calculating what percentage of social assistance income needs to be devoted to renting a low-quality rental unit • Our focus is on the price of the least expensive 20% of rental units • We align support provided for each family composition to appropriately sized rental unit • Single parent, one child in a one bedroom • Couple with two children in two bedroom • Two singles sharing two bedroom www.policyschool.ca

ALBERTA MONTHLY RENT QUINTILES BY CMA OR CA AND TYPE OF APARTMENT, 2015 2nd Quintile 3rd Quintile 4th Quintile $100-199 Dollar Range Amount of Monthly Rent X Average Monthly Rent Y Median Monthly Rent $400-499 $500-599 $600-699 $700-799 $800-899 $900-999 $1,000-1,099 $1,100-1,199 $1,200-1,299 $1,300-1,399 $1,400-1,499 Studio Apartments: Calgary X Y Edmonton X Y Grande Prarie X Y Lethbridge X Y Medicine Hat Y X Red Deer X Y One-Bedroom Apartments: Y X Calgary Y X Edmonton Grande Prarie Y X Lethbridge Y X Medicine Hat Y X Red Deer X Y Two-Bedroom Apartments: Calgary Y X Edmonton Y X Grande Prarie Y X Lethbridge Y X Medicine Hat Y X Red Deer Y X www.policyschool.ca

ALBERTA MONTHLY RENT QUINTILES BY CMA OR CA AND TYPE OF APARTMENT, 2015 2nd Quintile 3rd Quintile 4th Quintile $100-199 Dollar Range Amount of Monthly Rent X Average Monthly Rent Y Median Monthly Rent $400-499 $500-599 $600-699 $700-799 $800-899 $900-999 $1,000-1,099 $1,100-1,199 $1,200-1,299 $1,300-1,399 $1,400-1,499 Studio Apartments: Calgary X Y Edmonton X Y Grande Prarie X Y Lethbridge X Y Medicine Hat Y X Red Deer X Y One-Bedroom Apartments: Y X Calgary Y X Edmonton Grande Prarie Y X Lethbridge Y X Medicine Hat Y X Red Deer X Y Two-Bedroom Apartments: Calgary Y X Edmonton Y X Grande Prarie Y X Lethbridge Y X Medicine Hat Y X Red Deer Y X www.policyschool.ca

LONE PARENT WITH ONE CHILD RENTING A ONE-BEDROOM APARTMENT IN THE FIRST (LOWEST) QUINTILE OF RENTS 1990 1995 2000 2005 2010 2015 Calgary 46% 44% 55% 56% 60% 66% Edmonton 41% 39% 42% 51% 57% 60% Grande Prairie 48% 51% 53% 59% 49% 62% Lethbridge 45% 48% 48% 48% 51% 49% Medicine Hat 33% 37% 39% 44% 40% 42% Red Deer 42% 44% 47% 49% 49% 52% 78% 105% 125% 96% Wood Buffalo www.policyschool.ca

COUPLE WITH TWO CHILDREN RENTING A TWO-BEDROOM APARTMENT IN THE FIRST (LOWEST) QUINTILE OF RENTS 1990 1995 2000 2005 2010 2015 Calgary 38% 35% 42% 43% 50% 55% Edmonton 33% 30% 33% 39% 48% 52% Grande Prairie 36% 38% 37% 45% 40% 51% Lethbridge 34% 34% 33% 36% 42% 41% Medicine Hat 27% 27% 29% 32% 34% 35% Red Deer 32% 32% 36% 37% 41% 43% 56% 78% 103% 75% Wood Buffalo www.policyschool.ca

TWO SINGLES RENTING AND SHARING A TWO-BEDROOM APARTMENT IN THE FIRST (LOWEST) QUINTILE OF RENTS 1990 1995 2000 2005 2010 2015 Calgary 61% 61% 77% 83% 77% 88% Edmonton 52% 54% 60% 75% 74% 83% Grande Prairie 58% 67% 68% 86% 62% 81% Lethbridge 53% 59% 60% 70% 65% 65% Medicine Hat 43% 47% 53% 62% 52% 56% Red Deer 52% 57% 66% 71% 62% 69% Wood Buffalo 101% 151% 157% 119% www.policyschool.ca

BUT THERE IS MORE THAN JUST RENT • Almost all income of the very poor is dedicated to rent, food, utilities www.policyschool.ca

2016 SPATIAL PRICE INDEX (PRICES RELATIVE TO EDMONTON) 2016 All-items Food Shelter Utilities Transportation Clothing Calgary 101.4 102.5 101.8 109.0 99.6 97.8 Edmonton 100.0 100.0 100.0 100.0 100.0 100.0 Grande Prairie 103.7 103.6 99.0 140.8 109.7 92.4 Lethbridge 97.2 102.0 91.5 103.1 97.2 94.0 Medicine Hat 91.1 105.5 68.4 75.9 103.9 94.9 Red Deer 98.3 102.4 95.6 111.3 97.5 95.2 Wood Buffalo 114.5 112.3 136.5 121.9 104.2 95.7 Source: Statistics Canada, Consumer Prices Division, "2016 Alberta Spatial Price Survey, A Place-to-Place Price Comparison Survey". www.policyschool.ca

2016 SPATIAL PRICE INDEX (PRICES RELATIVE TO EDMONTON) 2016 All-items Food Shelter Utilities Transportation Clothing Calgary 101.4 102.5 101.8 109.0 99.6 97.8 Edmonton 100.0 100.0 100.0 100.0 100.0 100.0 Grande Prairie 103.7 103.6 99.0 140.8 109.7 92.4 Lethbridge 97.2 102.0 91.5 103.1 97.2 94.0 Medicine Hat 91.1 105.5 68.4 75.9 103.9 94.9 Red Deer 98.3 102.4 95.6 111.3 97.5 95.2 Wood Buffalo 114.5 112.3 136.5 121.9 104.2 95.7 Source: Statistics Canada, Consumer Prices Division, "2016 Alberta Spatial Price Survey, A Place-to-Place Price Comparison Survey". www.policyschool.ca

2016 SPATIAL PRICE INDEX (PRICES RELATIVE TO EDMONTON) 2016 All-items Food Shelter Utilities Transportation Clothing Calgary 101.4 102.5 101.8 109.0 99.6 97.8 Edmonton 100.0 100.0 100.0 100.0 100.0 100.0 Grande Prairie 103.7 103.6 99.0 140.8 109.7 92.4 Lethbridge 97.2 102.0 91.5 103.1 97.2 94.0 Medicine Hat 91.1 105.5 68.4 75.9 103.9 94.9 Red Deer 98.3 102.4 95.6 111.3 97.5 95.2 Wood Buffalo 114.5 112.3 136.5 121.9 104.2 95.7 Source: Statistics Canada, Consumer Prices Division, "2016 Alberta Spatial Price Survey, A Place-to-Place Price Comparison Survey". www.policyschool.ca

WHAT IF SOCIAL ASSISTANCE INCOME VARIED BY LOCAL COST OF LIVING? • What would social assistance income need to be for a person or family to devote the same percentage of income to rent as someone living in Medicine Hat? • We use data for 2015 • In Medicine Hat, SA income devoted to rent is • 42% for lone parent with one child in a 1 bedroom • 35% for couple with two children in a 2 bedroom • 56% for two singles sharing a 2 bedroom www.policyschool.ca