Saturday, June 07, 2008

Where we live and what we pay for it.


Housing was the topic of two stories in the local papers over the last few days, as both publications examined sets of figures from Statistics Canada and the Canada Home Mortgage Corporation.

The Daily News had a wire copy story on how Housing is grabbing less of the local income these days, with the average household in Prince Rupert spending 17.4 per cent of its income on housing and shelter down from the 2001 numbers where 18 per cent of our income was allocated to household shelter requirements.

The Northern View examined the rental market in the city, with the unusual trend of a high vacancy rate finding rental increases the norm across the city, an interesting development that runs counter to the usual practice of lower rents when vacancy rates are high.

When you combine the two reports, it seems clear that if you own a home and have paid off your mortgage life for the most part is fairly cost effective.

While if you’re paying rents in town these days, finding a place probably won’t be a problem, but you may find the sticker shock of your rental choices driving you off to the real estate listings to go purchase your own little corner of Podunk. That is, providing you can find a reasonably priced bit of shelter that isn’t about to tumble into heap before your very eyes, or lay waste to your financial standing while you're looking.

Housing grabbing less local income
The Daily News
Thursday, June 5, 2008
Pages three and five

Ottawa- Canadians are forking out more for groceries and gas these days, but here’s some good news for the family budget: a new analysis of census data suggests people in Prince Rupert are spending a smaller portion of their paycheques on housing than they were at the beginning of the decade.

The median cost of housing in Prince Rupert was $7,756 a year – or $646 a month – in 2006, Statistics Canada reported Wednesday in a new report on shelter costs across the country.

That means the average household in Prince Rupert spent 17.4 per cent of its income on housing and shelter costs in 2006. The previous census data from 2001 indicated households in Prince Rupert spent 18 per cent of their income on housing coasts.

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 Prince Rupert generally spend proportionately more of their income on housing costs than home owners who are still carrying a mortgage.

The average renter had to devote $6,598 annually to housing.

That’s equal to about or 22.2 per cent of household income to housing costs.

Home owners in Prince Rupert with a mortgage had spent a median of $12,869 annually or 18 per cent of their income on housing. For those homeowners without mortgages, the proportion was much less – 8.4 per cent for an annual cost of $5,006.

A total of 61.7 per cent of households in Prince Rupert are home owners. That’s an increase from five years earlier, when it was 58.9 per cent. Those without mortgages represent 22/7 per cent of households in the community.

Across Canada, the median shelter cost for home owners in 2006 was $10,056 annually and for renters it was $8,057. Across British Columbia, home owners spent $10,521 and renters paid $9,026.

The average Canadian household spent 18.1 per cent of its annual income on housing- meaning people in Prince Rupert 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.

Rupert vacancy rate in the double digits
By Shaun Thomas
The Northern View
June 05, 2008

The apartment vacancy rate in Prince Rupert at the end of April went down by more than one per cent compared to last April’s numbers, but the city still has the second highest vacancy rate in the province behind only Kitimat, which experience a more than 20 per cent reduction in its vacancy rate.

According to numbers released by the Canadian Mortgage and Housing Corporation, apartment vacancy in Prince Rupert sits at 14.3 per cent, down from 15.4 last year. However, the vacancy rate in both one and two bedroom apartments went up.

Prince Rupert is one of only two communities in the province with a double-digit vacancy rate. In comparison, Kitimat’s vacancy rate fell from 44.4 per cent to 23.2 per cent, with one-bedroom apartment vacancies falling from 46.2 per cent to 8.2 per cent, and Terrace’s vacancy rate sits at 3.1 per cent. British Columbia’s overall vacancy rate fell from 1.2 per cent to 1.1 per cent among larger municipalities.

And while the vacancy rate in the city remains high, the average rental price for an apartment in Prince Rupert noticeably increased in the past 12 months. The average rent for an apartment in the city is $590, up from $533 last year. That number puts Prince Rupert as the highest average rent among northwest communities. Rent for a two-bedroom apartment went up almost $100, from $572 to $665, while a one-bedroom apartment went from $487 to $542.

The $57 difference over the last year is also quite different from our Northwest neighbours, with the average rent of an apartment in Kitimat going up by just one dollar to sit at $471, and the average rent in Terrace increase by $16 to sit at $538. However, the average rent is well below the $833 average of the province.

Not surprisingly, Vancouver had the highest average rent at $904.

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