It’s no surprise that due to the rising cost of rent that Statistics Canada reports that nearly a quarter of Canadians spend more than 30% of their income on housing which is the guideline to affordability. This really taps in to a family’s ability to save since rental costs are increasing but income is not.
The government used to mandate construction of affordable homes but less so in recent decades. Lack of affordable housing is forcing families to live in buildings that may be unsafe, often battling infestation of bugs and rodents. The Canada Mortgage and Housing Corp. says average rents rose by 2.7 per cent last year to $947 per month across the country.
Moving to find cheaper accommodations is not so simple. There is a lack of affordable housing everywhere. This Infogram shows the hardest cities in Canada to find an apartment. As people stay put, lower vacancy rates have driven up the cost of apartments available for reasonable rent.
Although you have no say in rising rental costs, there are things that can control and that is your budget.
Tips To Deal With The Rising Cost Of Rent
Keep Your Credit Strong: Without a strong credit rating you may be limiting your housing options. Our members at MyMoneyCoach have some useful tips on maintaining a healthy credit bureau. You can also obtain a free copy of your credit bureau report here.
Set Aside Savings: Moving to more affordable housing can be expensive. Consider all the costs of relocating and not just the cost of housing. Consider the transportation expenses. Even if you use a “do it yourself” rental truck, you still need to factor in gas and mileage. Don’t forget to budget for feeding your helpful friends, boxes and packing materials. Starter costs can add up quickly as well. You may need to put down a hefty deposits and arrange to have utilities and other services activated which also come with fees.
Steer Clear of Debt: The seven-year car payment you choose to take on now while your rent is manageable could become unmanageable should you need to move in two years. Avoid “Buy Now, Pay Later” plans and only purchase what you can afford and what you need. Our member at Credit Canada has identified 5 categories that cause Canadian Debt. Click here to see if you agree.
If you need some assistance in calculating your take home pay, or creating a budget, give one our accredited counsellors a call for free advice. Our members provide unbiased, not-for-profit credit counselling that puts your interests first. In working with a member, you can be sure you have made the best choice for trusted not-for-profit credit counselling services.