Housing costs in Montreal eating more of family paycheque: analysis
Last Updated: Wednesday, June 4, 2008 | 11:16 AM ET
The Canadian Press
With Canadians forking out more for groceries and gasoline, a new analysis of census data suggests another budget strain for Montrealers: they're spending a bigger portion of their paycheques on housing than they were at the beginning of the decade.
The median cost of housing in the Montreal region was $8,208 a year – or $683 a month – in 2006, Statistics Canada reported Wednesday in a new report on shelter costs across the country.
That means the average household in Montreal region spent 18.6 per cent of its income on housing and shelter costs in 2006. The previous census data from 2001 indicated households in the Montreal region spent 18.1 per cent of their income on housing costs.
Statistics Canada defines shelter costs for homeowners as mortgage payments, property taxes, condo fees and utilities. For renters, the costs include rental payments and utilities.
Looking at income-to-shelter-cost ratio is one way of measuring what the government agency calls the "affordability" of housing, including the differences between those who rent and those who have bought a home or condo.
Renters in the Montreal region generally spend proportionately more of their income on housing costs than homeowners who are still carrying a mortgage.
The average renter had to devote $7,360 annually — or 23.8 per cent of household income — to housing costs.
Homeowners in the Montreal region with a mortgage had spent a median of $13,969 annually or 18.9 per cent of their income on housing. For those without mortgages, the proportion was much less – 8.5 per cent for an annual cost of $5,198.
A total of 53.3 per cent of households in the Montreal region are homeowners. That's an increase from five years earlier, when it was 50.3 per cent. Those without mortgages represent 20.3 per cent of households in the community.
Across Canada, the median shelter cost for homeowners in 2006 was $10,056 annually and for renters it was $8,057. Across Quebec, homeowners spent $8,619 and renters paid $6,788.
The average Canadian household spent 18.1 per cent of its annual income on housing — meaning people in the Montreal region have proportionately the same housing costs as the rest of the country.
The analysis released Wednesday by Statistics Canada is based on census data collected more than two years ago. The next census will be taken in 2011.
The census data on housing costs is for what's known as the census metropolitan area of Montreal, which represents the city's core boundary as well as outlying suburban areas.
