According to a January study conducted by the Collingwood-based Housing Resource Centre, the price of housing in the Southern Georgian Bay region has increased to a point where it is no longer affordable for a significant portion of residents.
The problem is due in large part to population growth and the market-driven nature of the region’s housing market. Put simply, there is a high demand for a low supply of available units. Real estate sales have been strong over the past several years, but developers are pressured to build what the market is demanding – typically moderately priced, single family homes – rather than increase the affordability of housing by constructing units of various type and cost. As a result, those units that are available – many of which are considered to be substandard in quality by the study – do not meet the “definition of housing affordability” for much of the population, especially young people, seniors, and those with low paying jobs.
According to Statscan census data collected in 2001 and 2006, the gap between income levels and home values is growing. In that time, the median household income in Clearview Township decreased 3.69 per cent. Conversely, the average value of dwellings increased 59.3 per cent and the average rental rate increased 22.6 per cent. These statistics closely mirror those seen throughout the Southern Georgian Bay region as a whole. According to Gail Michalenko, executive director of the Housing Resource Centre, 45 to 49 per cent of people in the Southern Georgian Bay region are putting more than 30 per cent – the limit in terms of affordability – of their income toward housing costs.
If nothing is done to fix the problem, the Housing Resource Centre report predicts home ownership will become more unattainable and that those who rely on affordable rental units will potentially be without housing.
“Affordable housing is one of the most fundamental requirements for good health,” states the study. “Poor housing and homelessness shatters communities.”
The study proposes that municipalities and counties introduce by-laws and tax methods that encourage developers to accommodate diverse housing needs.
Alicia Savage, deputy mayor of Clearview, said that the Township is aware of the study and expects that it will be a subject of discussion on an upcoming agenda. Already, residential zoning policies have been put in place that make adding accessory housing – such as basement apartments and duplexes – automatic.
Council is also in the process of developing a new Official Plan, and Savage said that staff are working to establish inclusionary zoning policies that require development projects to include a special component desired by the municipality, usually affordable housing.
“We can’t force developers,” said Savage, noting that most of the muscle lies with the Province, “but we can encourage them.”
“The objective for the long-term is to have healthy communities,” said Michalenko, emphasizing the importance of strategic planning. “If diverse housing is not made available, the Municipality is not meeting the needs of the community.”