A new report has found that housing is unaffordable for minimum wage workers in Lethbridge, as well as most of Canada. (Photo: Lethbridge News Now)

By David Opinko

Rent in Lethbridge unaffordable for minimum wage workers: report

Jul 19, 2023 | 9:09 AM

LETHBRIDGE, AB – A new report states that rent is unaffordable for minimum wage earners almost everywhere in the country.

The Canadian Centre for Policy Alternatives (CCPA) has released its report titled, Rental wages in Canada 2022.

It seeks to determine how much money a person would need to earn in order for a housing rental to be considered affordable.

In determining what the “rental wage” is for a given community, the CCPA uses the traditional wisdom that a full-time worker should not have to spend more than 30 percent of their pre-tax income on a housing rental.

In 34 out of 37 census metropolitan areas (CMA) across the country, the report states that the minimum wage is lower than the rental wage for a one-bedroom unit. For two-bedroom units, that goes up to 35 out of 37 CMAs.

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The one-bedroom rental wage for Lethbridge was $19.62 per hour in 2022, or $21.75 for two bedrooms.

In the National Rent Report for June 2023 from Rentals.ca and Urbanation, the average monthly cost of rent for a one-bedroom unit in Lethbridge $1,176, while homes with two bedrooms went for $1,377. Those amounts are up by 10.1 per cent and 12.6 per cent respectively from the same time in 2022.

Among the three cities in Alberta that were analyzed for the rental wages report, Calgary had the highest rental wages at $24.65 per hour for one bedroom and $29.51 for two bedrooms.

Renters in Edmonton would have to earn $20.89 per hour to make a one-bedroom unit affordable or $25.61 for two.

With a minimum wage of $15 per hour in Alberta, the provincial averages were $21.42 for one bedroom and $25.27 for two bedrooms.

At the very top of the national list was Vancouver. A person would have to earn $32.36 per hour for a one-bedroom unit to be considered affordable or $42.60 for two bedrooms. The minimum wage in B.C. is $15.65 per hour.

Saguenay, Quebec is one of only three cities in Canada where the minimum wage is higher than the rental wage. The rental wages there are $10.44 per hour and $13.69 per hour, while the minimum wage is $14.25.

The full Rental wages in Canada 2022 report is available on the CCPA website.

READ MORE: Lethbridge News Now

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