Monday, June 25, 2007

Expectations for affordable housing

What do you think of when you hear the word affordable housing? Do you think of homeless shelters or government subsidized housing? Affordable housing can mean different things to different people depending on your point of view (and your income). One must be careful with the use of the term affordable housing because it can be associated with negative social connotations.

What is the common definition of affordability? The Canada Mortgage and Housing Corporation's (CMHC) common definition is: "The cost of adequate shelter should not exceed 30% of household income. Housing which costs less than this is considered affordable. However, consumers, housing providers and advocacy organizations tend to use a broader definition of affordability." This can apply to rent or ownership projects.

Do people with mortgages in Salmon Arm actually meet this benchmark for affordability in either their mortgage payments/property taxes or rents?

What type of affordable housing do people expect to live in? For a first time home buyer just entering the market, do people expect to live in a 1,500 sq ft single family dwelling, a 1,000 sq ft dwelling, a small townhouse, a two bedroom apartment type home, etc? Please feel free to discuss what type of housing in today's market a first time home buyer should expect to live.