Canada Housing Market

A recent report from Food Banks Canada reveals that poverty in Canada may be more extensive than previously thought. The organization estimates that 25% of Canadians could fall under this category due to their inability to afford two or more essential household items. This revelation significantly exceeds the four million people reported by Statistics Canada as living in poverty, suggesting that nearly 10 million Canadians are struggling with basic needs.

The report introduces the Material Deprivation Index (MDI), a metric used in Europe to measure poverty levels. This index differentiates between individuals who cannot afford certain goods or services and those who do not have these items by choice. According to Eurostat, the statistical office of the European Union, this distinction provides a clearer understanding of material deprivation.

Richard Matern, Director of Research at Food Banks Canada, underscores the importance of continuing efforts to reduce poverty. He notes that many more people are feeling the impacts of poverty than traditional income measures reveal.

The report highlights several critical statistics:

• Clothing: 10% of Canadians cannot afford necessary clothing.
• Dental Care: 18% cannot afford dental care.

By evaluating 11 essential items, the report suggests that 25% of Canadians likely live in poverty because they cannot afford two or more of these essentials. This methodology indicates that about 10 million people in Canada face significant material deprivation​ (WOWA)​​

The report also considers other indicators such as food insecurity, economic distress, self-reported income adequacy, and actual income levels. Combining these factors provides a more comprehensive view of the poverty landscape in Canada. Matern explains that examining these indicators together shows that multiple deprivations often coincide, highlighting the complexity of poverty.

The Canadian housing market, especially in Toronto, plays a crucial role in this scenario. High housing costs, both for renters and homeowners, add to financial stress. Statistics Canada’s Market Basket Measure defines poverty based on the inability to afford a basic standard of living, including housing, food, and other essentials. However, factors like assets, debt, rental costs, disabilities, and transitions to higher rent housing can significantly affect a household’s standard of living​ (WOWA)​.

Sarah Stern, Executive Director of the Maple Leaf Centre for Food Security, suggests that using the MDI alongside existing income-based measures could help government programs better target food insecurity and poverty. This approach could provide deeper insights and enhance outreach efforts.

The report identifies single-parent families and individuals aged 18 to 30 as the most vulnerable groups, with 44.5% and 30%, respectively, living in poverty. Additionally, 42% of renters cannot afford two or more household essentials, indicating a poverty-level standard of living.

Overall, the findings indicate that poverty in Canada is more multifaceted than income-based measures alone suggest. Addressing these challenges requires a comprehensive approach that considers both income levels and material deprivation

Source: FBC_2024PovertyInCanada_ENG_v6.pdf (fbcblobstorage.blob.core.windows.net)