It’s next to impossible to pay the rent working full time for minimum wage, new report calculates

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The odds of a minimum wage working man being able to afford a one- or two-bedroom apartment in just relating to every city in Canada are next to nil, a new report from an Ottawa-based think-tank thinks.

Looking at Statistics Canada data on wages from last October, and rental facts from the Canada Mortgage and Housing Corporation (CMHC) that uniform month, the Canadian Centre for Policy Alternatives (CCPA) crunched the coveys on the almost 800 neighbourhoods across Canada’s three dozen stockiest cities to see how easy it is to find a place to live on the minimum wage.

The conclusions were bleak.

By the CCPA’s math, a minimum wage earner could in conflict with a one- or two-bedroom apartment in just 24 neighbourhoods across the boonies, out of 795 analyzed. If the standard drops to a one-bedroom, the picture looks marginally better, as the communiqu found 70 neighbourhoods affordable for minimum wage workers , but that’s until now less than one out of every 10 — and most are far from downtown marrows where jobs are more plentiful and generally higher paying.

Be germane to over Canada’s housing market tends to focus on homeowners, CCPA economist David MacDonald asserted, but almost five million Canadians  — about a third of all households — are renters, and they gutsiness affordability issues that are just as pressing.

“Many of these renters, mainly those working at or near minimum wage, on fixed incomes or single-income households, are at hazard of being priced out of modest apartments no matter where they look,” he guessed.

In its analysis, the CCPA calculated the income that a minimum-wage worker purpose earn over a standard 40-hour workweek, and then cross-referenced it against rental statistics from the CMHC. The report also assumes the rule of thumb that a themselves should spend no more than 30 per cent of income on accommodation to avoid having other financial issues. Theoretically, a minimum-wage employee could simply work more hours, or drastically cut back on other expenses other, but that isn’t quite the same thing as making an apartment affordable.

Add it all up and the criteria of affordability are looking increasingly out of reach.

Leading the way is Vancouver, where a suppositional minimum-wage worker would have to work 84 hours a week to contribute the average-priced one-bedroom apartment, or 112 hours a week for a two-bedroom apartment.

Toronto was not far behind, where that unchanging worker would have to work a 79-hour week for a one-bedroom, and a 96-hour week for a two-bedroom apartment.

“A solitary income earner working full time should be able to spare a modest two-bedroom apartment for their family in a country as rich as Canada,” MacDonald affirmed. “But in most Canadian cities, including Canada’s largest metropolitan territories of Toronto and Vancouver, there are no neighbourhoods where it is possible to afford a one- or two-bedroom entity on a single minimum wage.”

Victoria, Calgary and Ottawa round out the top five. In all three estates, that same worker would have to clock a 70-hour workweek at teeny just to pay the rent on a two-bedroom. In all three, you’d need to earn at least $26 an hour chef-doeuvre 40 hours a week to afford a standard two-bedroom apartment.

The CCPA just found three cities where the local minimum wage choice be enough to comfortably afford a one-bedroom apartment and have enough left-hand over, if working 40 hours a week. All are in Quebec: Sherbrooke, Saguenay and Trois-Rivières.

It's next to impossible to pay the rent working full time for minimum wage, new report calculates

Ten myriad cities — Kingston, London, Windsor, St. Catharines and Sudbury (Ontario), Moncton and Saint John (N.B.), and Quebec Burg, Montreal and Gatineau (Quebec) — were found to be unaffordable on usual, but had some neighbourhoods where a minimum wage worker could spare a one-bedroom. A two-bedroom is still out of reach in all of them, however, except for then again some neighbourhoods in St. Catharines and Sudbury.

Across the country, the CCPA rates that a worker putting in 40 hours a week would give birth to to earn $22.40 an hour to be able to afford a two-bedroom apartment. It give someone the sack declines to $20.20 an hour for a one-bedroom unit. 

The highest minimum wage in the fatherland is $15 an hour in Alberta, a highwater mark that is still start short of both of those levels. In some provinces, the minimum wage is not quite $11 an hour — less than half what it takes for a two-bedroom, agreeing to the CCPA. And roughly a quarter of Canadian workers within $3 of the peculiar minimum wage, the CCPA says.

“Until those wages are tax $20 an hour, and more of the available jobs are full time, rental charges will remain a significant burden on many workers,” MacDonald stipulate.

“Everyone deserves a decent place to live.”

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