Affordable housing and housing affordability are always top of mind for me - and come up often in chats I have with residents. While these two terms are sometimes used interchangeably in conversation, they have distinct definitions along the housing spectrum.
The recent Affordable Housing Strategy highlighted the need to ensure we are both building diverse affordable housing options, as well as preserving market affordability - such as lower rents.
The image below shows the City of Edmonton’s Housing Spectrum:
There is a distinct difference between “affordable housing” and housing that’s considered to be “market affordable”. Market affordability is a product of economic supply and demand.
Housing is typically considered affordable if home costs (such as rent or mortgage payments, condo fees, utilities, insurance, and property taxes) make up less than 30% of a household’s before-tax income.
This means that what is considered affordable varies from household to household. Some can achieve this balance within the market (through home ownership or private rentals). The City also has many policies in place to better address the supply-side of the economic equation and keep the City’s housing affordability advantage.
Other folks may need additional support such as living in social housing to get to that 30% ratio. Ultimately, market housing alone cannot address housing affordability for the 46,115 households in core housing need in Edmonton, nor the needs of over 3000 people in our city who are experiencing homelessness. Short-term subsidized accommodation (i.e. emergency shelter spaces and transitional housing) are not considered affordable housing as they are temporary shelter options.
Affordable Housing needs to be distributed across all of Edmonton as outlined in policy with the long term target for all neighbourhoods in the city to have a minimum of 16% non-market affordable housing.
The City has strategies and policies to support the development of affordable housing across Edmonton. To help non-profit affordable housing developers increase the supply of affordable housing, the City provides grant funding, below-market land sales and expedited permitting and development processes.
Do you have ideas to share with me about how to increase the number of affordable housing options? As always, I am open to hearing feedback from residents!
