Both homeowners and renters are stuck in an unaffordable market

This United Insights post is adapted from the Social Research and Planning Council’s new report, Our Stories of the Housing Crisis: Findings from the Cost of Housing Survey.

From January to April 2024, the Social Research and Planning Council’s Cost of Housing survey heard from 716 Perth-Huron residents who reported being affected by rising housing costs. Respondents were asked open-ended questions about how they were affected, how they adapted and what they wanted to share with leaders. Responses represented parents and workers especially, including workers from all major regional sectors.

Our report is structured around the most common themes across the dataset. The first part of the report focuses on themes directly related to housing itself. First, we’ll cover the experiences described by individuals in different housing situations — both homeowners and renters. Then, we’ll review how respondents described changing their housing behaviours in response to rising costs.

Homeowners Hurt by High Prices and Rates

Most Perth-Huron households own their homes, and homeowners make up around half of our sample. While homeowners are typically wealthier than renters, this has not shielded them from rapid increases in house prices and interest rates.

“Insane” Prices and Increases

31% of respondents said they were affected by increasing or unaffordable mortgage payments. This included some who bought into the market at higher rates and prices, like the Perth South respondent who wrote, “The price I bought my house at is insane. My mortgage is easily double what it would have been not that long ago.” Most of these respondents (25% of the total sample) reported mortgage payments on their current house shooting up with interest rate hikes. These increases were often dramatic—in some cases four figures:

“Our mortgage payments will increase $1,000 a month! How do I just magically come up with a spare $1,000 each month?” – Stratford

Payments Went Up

Increases like this can easily stretch a household budget to the breaking point, as described by this Perth East respondent: “It’s harder to afford ANYTHING in life when rates go from 2.5% to over 7% in just a few years. That means a $1,200 increase in our monthly payments. While we make significantly more than average, even we are struggling.” Mortgage regulations are meant to ensure households aren’t overwhelmed by debt, but rate hikes work against that, as in the case of the Huron East resident who wrote, “Stupid floating mortgage. Payments went up, just to cover the interest. Last year, we only paid $85 off the principle and over $20,000 in interest.”

Impacts on homeowners aren’t limited to mortgage payments, as this North Huron quote shows: “Between mortgage and property tax, our monthly housing cost is over $2,500. We live in a very modest old home … nothing fancy at all.” 10% of respondents highlighted high or increasing taxes as a financial challenge, questioning annual increases and the fairness of local rates compared to other areas.

We Had to Sell Our Home

For some respondents, payment increases were enough to make them reconsider homeownership altogether, although few good alternatives exist. “My mortgage is due for renewal. With interest rates so high, I may not be able to afford it,” wrote a Goderich resident. “I looked to rent an apartment, but that’s more than my mortgage.” Sometimes, rate hikes led to displacement, as in this comment from South Huron: “We had to sell our home of over a decade because we would not be able to renew our mortgage at the new interest rates. We moved to a new town and are short-term renting.”

How Will They Ever Save for the Future?

Unaffordable mortgages and a lack of options left residents uncertain about their future and worried about their kids. “When my mortgage comes due in the next year or so, my income will be at its lowest point in a very long time,” said one North Perth resident. “My children could contribute, but how will they ever save for their own future?”

Renters Struggle with High Rents and Bad Options

Since more households are unable to afford ownership, demand for rentals has increased. This is one factor driving rental shortages and steep rent increases. 21% of all respondents highlighted the sheer unaffordability of the rental market. “About 45% of my income goes towards rent. It was difficult finding a place to rent, as there is nearly nothing available in the area,” a North Huron resident reported.

Extremely Unaffordable

14% of respondents indicated their current rent was unaffordable. Housing is considered affordable1 if it amounts to 30% or less of total household income. Many respondents described paying far more. “I would love to settle here with my small family, but our rent has become extremely unaffordable,” said a St. Marys resident. “We are living paycheque to paycheque and not putting a cent in savings.” A Howick respondent wrote, “The cost of housing is pretty much a whole paycheque. I have to really be careful with spending.”

There’s Nothing Cheaper Out There

Given the unaffordability of available units, many renters chose to stay in their current unit, even if that unit didn’t meet their needs. From South Huron: “I have to live in a two-bedroom apartment that is so overpriced. I need a three-bedroom but can’t afford what I have. Living month to month is scary and there’s nothing cheaper out there.” From North Perth: “My partner, our child and I live in a small one-bedroom apartment, and we can’t afford to move. We couldn’t even afford the same apartment at market value.” From Goderich: “The cost of rent is a huge barrier to living somewhere that meets your needs. I live in a small apartment and I can’t move, let alone move to a better space, as even same-size apartments are more than double my rent.”

Forced to Move

In this context, many moves were not voluntarily. “I was forced to move,” wrote one Huron East resident. “I went from paying $675 to $1,300 for rent in Brussels.” 12% of respondents mentioned rent increases, and the rent increases from moving are some of the most shocking:

“I need to move soon and will pay double the rent for another place of the same quality.” – Bluewater

Paying More for Less

The rise in market rents has been so extreme that moving often leads to both a leap in rent and a drop in unit quality. “We were forced out of a bigger, cheaper rental, as the landlord was harassing us for more money. We ended up in a smaller rental at triple the cost,” said a West Perth respondent. One Central Huron respondent highlighted the unfairness of a housing market with few truly affordable options: “I had to live with my parents for five years and now I’m struggling to make ends meet in a ‘cheap’ apartment.”

Stressful, Humiliating, and Sad

Whether renters are stuck or displaced, renting in such a market is difficult and distressing. This comment from a Stratford local highlighted the suffering involved: “I was faced with finding housing at double my previous rent, leaving little to live on. Life went upside down fast. I got help from friends but will have to move again. After working hard all my life, finding myself with limited options is stressful, humiliating, and very sad.”

When Housing Costs Rise, People are Stuck or Displaced

Respondents said that rising housing costs prevented them from getting or keeping the housing they wanted or needed. “We are unable to move (rents are too high for our income) and we still can’t buy. So we’re stuck where we are,” said a Stratford resident. 37% of our sample described their mobility being constrained like this.

We Can’t Afford Better Housing

11% of respondents were not only stuck but stuck in housing that was inappropriate for them in some way. When choices are few, households may settle for a unit that is too small, in poor condition, or both, as in the case of this North Perth respondent: “We can’t afford better housing. We have gone six months without a stove, there is mould in our bathroom, and my boy’s room has water damage.”

Way Underhoused

6% reported their housing was the wrong size. For some, that meant slightly less space than is comfortable, and for some it meant dramatic overcrowding: “The rising rental amounts make me unable to find or afford a two-bedroom apartment for my daughter and me,” said a Bluewater resident. “We have a one-bedroom. She has the bedroom, so she has private, personal space. I fall asleep on the couch.” Some situations are extreme, as this St. Marys respondent described: “I am currently way underhoused. I have a boy and a girl sleeping in the same room as me and a teenager sleeping on the couch. A proper place is about $1,500 out of my reach per month, if not more.” On the other hand, a few respondents report being “overhoused,” particularly seniors who cannot afford to downsize.

We Just Put Up With It

A few respondents (2%) stayed in their unit despite conflicts with neighbours, landlords or partners. “I want to move out with my kids, away from my abusive partner, but the housing cost and everything else is way too much to afford,” said a South Huron resident. “So we just put up with it.” In cases like this, unaffordable housing can create a barrier to separation and even compromise physical safety.

For many respondents, the unaffordable market prevented them from accessing whole categories of housing. 13% of respondents saw themselves as shut out of home ownership, and 8% reported being shut out of the rental market.

“Any money previously saved for a down payment is no longer sufficient, and we are priced out of even a starter home.” – Goderich

I Would Rather Own, But Houses Have Doubled

Rapid increases in house prices moved the goal posts, even for those like this Central Huron respondent: “Rent’s going up. As a working almost-senior, I would rather own a home. I have enough for a significant down payment, but houses have basically doubled.”

I Had to Move Away

While one in three respondents reported reduced mobility, 16% of respondents reported having to move when they didn’t want to. Some respondents moved to save money, some as a result of an eviction (6%). Some have been separated from their family, community and social networks, like this Perth East resident: “I had to move two hours away from my neighborhood. I feel isolated and depressed.” 6% of our sample reported being displaced or expecting to be displaced in this way.

People Live Together to Save Housing Costs

14% of respondents reported living with others to manage housing costs. “I was unable to secure new housing after having to leave a rental and now I live with family,” said a respondent from North Huron.

Forced to Move in with Parents

7% of respondents mentioned adult children living with their parents, while 3% of respondents reported sharing with other family members. Many respondents stressed this was not for lack of effort: “As a single mother, I was forced to move in with my dad. I couldn’t afford the cost of rent plus utilities and other bills even though I worked a full-time job making $25 an hour,” said one Bluewater resident. Single individuals often reported needing this kind of support, along with locals on fixed incomes due to disability or age. 

There might be upsides to intergenerational living. However, while some respondents expressed thankfulness for this option, none were enthusiastic. Instead, cohabitation was described as a regrettable last resort and a sign of how bad things are:

“I’m living with my parents when that is that last thing any of us wishes for. I won’t ever be able to buy a house in this economy unless someone dies and gives me the money.” – St. Marys

Afraid to Go Out and Enjoy Life

Respondents described losing their independence: “I have a steady job, I make good money for my age, but I can’t afford a house. I am still living with my parents, and I am afraid to go out and enjoy my life because I need to save,” said a Perth East resident. Parents felt this too, like this Stratford respondent: “We have kids that can’t get out on their own because of the rising costs of housing and rent. The plans we made years ago for when the kids moved out have gone into the trash.” Respondents described tolerating conflict: “I’m unable to secure my own home, so I’m living with family members I wouldn’t normally live with. People with children are staying in unhealthy living situations due to housing cost, causing unnecessary stress,” said a Howick resident.

A Friend Heard of Our Plight

Another 3% of respondents reported sharing housing with a friend or renting out a room in their house. “We were facing homelessness as the date of our required move was looming, when a friend heard of our plight and let us move in with her,” said a West Perth resident. In an unaffordable market, these lifelines may not be as temporary as they should be: “That was over a year ago, and we have still been unable to find a place that I can afford.”

It’s Unfair that Our Children Can’t Move On

Respondents shared a belief that independent living ought to be economically viable for adult children and single individuals. As this Huron East respondent put it, “My adult child, who has a full-time job, but still has thousands in school loans, had to move home because he cannot find any place to rent within his means. It is unfair that our adult children cannot move on with their lives.”

Future posts will cover other adaptations respondents made to afford housing, how respondents explained the crisis, and what they want to change, plus our recommendation to increase the community housing stock. Read the full report now: Our Stories of the Housing Crisis: Findings from the Cost of Housing Survey.

1. 30% has been used as the affordability benchmark in Canada since the 1980s. Co-operative Housing Federation of BC. (2021). Rents and incomes in Canada: A brief review of the 30% affordability threshold. https://www.chf.bc.ca/wp-content/uploads/2021/07/Rents-and-Incomes-in-Canada-the-30-threshold.pdf

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