Low income renters spend 40% on rent - Income Security - Brief Article

Community Action, July 15, 2002

OTTAWA -- Two-thirds of Canadians households own their homes, but the number drops to 4 in 10 for the lowest 20% on the income ladder, according to Statistics Canada. Seven in 10 households in the lowest quintile were renters. Half of renters spent more than 40% of their after-tax income on housing, an item that cost 39% of after-tax income for low-income homeowners. On average, Canadian households spent about one-fifth of their after-tax income on housing. Households in the lowest quintile were also three times more likely than those at the top of the income ladder to live in unsuitable housing. Female lone-parent families had the highest rate - 23% - of living in unsuitable housing. Couples with children were 50% more likely to be in unsuitable housing than those without children.

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