Vital Signs report sheds new light on depth of housing crisis in Waterloo region

It isn't news that many in Waterloo region struggle to pay for housing, but the latest Vital Signs report from the Kitchener-Waterloo Community Foundation sheds new light on just how serious the problem is. 

The region is growing at a significant clip, while the supply of housing has not kept pace. Home prices are on the rise, cheap apartments are few and far between, while incomes have remained flat and are even declining for some residents in the region, the report found. 

"Income in this region is barely growing faster than inflation at the same time as we are seeing this incredibly fast appreciation in home prices," said Steven Ayer, lead author of the Vital Signs report, during a virtual town hall last week. 

In 2005, home prices were three times higher than the estimated median household income in the region. By January 2021, they were about 8.6 times higher. 

"It went from being a reasonably affordable market, to having a higher home price to income ratio than San Diego or Greater London — two cities known for being extremely expensive places to live," Ayer said. 

'Next to no' vacancy for units under $1,025 a month

Meanwhile, less expensive apartments are becoming more and more rare. 

The cost of a bachelor apartment in the Kitchener-Cambridge-Waterloo CMA climbed from $489 a month in 2008 to $1,089 a month in 2018, according to data from the Canadian Mortgage and Housing Corporation cited by the report. 

That's concerning because bachelor units are typically the most affordable for people on low incomes or young people leaving home, Ayer said. 

As of October 2020, there were no rental units available for less than $625 a month and "next to no" vacancy for units between $625 and $1,024, the report found. 

Incomes stagnant

Adding to the problem is that incomes in Waterloo region have stagnated, increasing by just 1.6 per cent between the 2005 and 2015 Census. Young people — between 25 and 34 — who aren't part of a census family have actually seen their incomes decline in that same period, the report found. 

Race, immigration status, gender and disability are also factors and make it tougher to find and secure a quality, affordable place to live, the report said. 

The report suggests some actions that could make a difference, including: 

• Expanding inclusionary zoning across Waterloo region. 
• Introducing a vacancy tax for units left empty for six months or more. 
• Collaboration between government, property owners and other funders to develop "mixed" housing models, with a combination of market and affordable housing.