Homelessness in Waterloo Region

Too Few Affordable Homes

By Deborah Schlichter
November 12, 2001

We have a housing crisis right here in Waterloo Region. Many people seem to think only large cities like Toronto experience housing problems and homelessness but this isn't true.

Housing is a commodity affected by supply and demand. In theory, if there is a need or demand for a commodity, there is a market for meeting that demand. However, affordable housing is different. There are long waiting lists of those who need and want affordable housing, but there is very little to offer in supply.

A definition of affordable housing is where tenants do not pay more the 30% of gross income on rent. Currently, there are more than 3,900 households on a waiting list for rent-geared-to-income units in social housing or not-for-profit housing in Waterloo Region.

This is compounded by recent policy changes allowing landlords to raise the rent of vacant units to what the market can bear. While this helps landlords to better cover their costs, it in effect reduces turnover of units as tenant are afraid to leave their present accommodations for higher priced units elsewhere. In Waterloo Region, the average rent has increased more than the rate of inflation since this policy came into effect. At the same time, for many low-income people, household income has not increased. Minimum wage has not increased in Ontario since 1995. If you are on a fixed income like social assistance, the rates were decreased in 1995 and have not been increased since. For example, a single person on social assistance receives $325 per month for shelter. The monthly market rent for a one-bedroom unit is over $500.

Waterloo Region has the third lowest apartment vacancy rate in Canada (0.7%). We also have two universities and a community college that attract many students to this area. With a tight rental market, and with rent costs eating up more and more of one's income, there are increasing numbers of individuals and families that are finding themselves homeless and having to use temporary shelters.

The estimate of homelessness in Waterloo Region is about 1500 to 2000 persons per year. Our emergency shelters are at over capacity and the Out of the Cold Program, which was meant to be a temporary solution for homelessness over the winter season, is needing to find additional space to meet their growing demands. As a response to these increasing needs, we provide band-aid solutions such as more emergency shelters, heat banks, rent banks, and emergency food hampers.

What about the supply side of the equation? In 2000, while 583 new rental apartments were started, there was a decrease of 296 existing apartment rental units due to demolition or conversion to private ownership and condominiums. This small overall increase in rental units does not begin to meet the demand for affordable housing, since most of the new units built are not affordable housing units. Part of the reason for the low supply is that builders are not able to cover their expenses creating low cost housing. Another reason is that both the federal and provincial governments pulled out of providing a "housing program" that gave incentives and funding to create not-for-profit housing.

So, we have high demand for, and low supply of, affordable housing. How do we create an environment that will increase the supply to meet the demand? Fortunately, in Waterloo Region, there are concerned citizens, community agencies and government representatives who are trying to solve this complex puzzle. There have been community forums and discussions about homelessness and affordable housing, and there is now a community plan that will give some direction about where to spend our time and energy on these issues.

Local municipalities have identified housing as a key issue in their visioning processes and are exploring potential incentives that they can give to builders of affordable housing. The Region of Waterloo is also working hard to provide both planning incentives and funding to encourage the building of affordable units of housing.

Unfortunately, the numbers of units that will be built under these opportunities will remain fairly small. The Region's Affordable Housing Partnership funding will only create 1000 new units of affordable housing by 2005. While this is a tremendous achievement, especially since we are only one of a few areas doing this across Ontario, this program will still not be able to meet the current and growing demand for affordable housing.

The only way that we will be able to have enough supply to meet demand is for the senior levels of government to get back into the housing business.

Shelter is considered a basic need, along with food and clothing. When your basic needs are in jeopardy, it is difficult to concentrate on other functions such as seeking and maintaining employment. Housing should be considered along with other important government budget priorities of education, health and security.

The crisis will only continue to grow if we do not change our current government housing policies.

Working Group member Deborah Schlichter is the executive director at House of Friendship. She is involved in many local housing and homelessness groups, and sits on the Ontario Non-Profit Housing Association board of directors.

This article was originally published in The Record. Republished with permission of the author.