Apartment crunch seen hard on single parents
Housing City's poor will facing tough choices, official says
SANDRA DAVIS
Telegraph-Journal
SAINT JOHN - Apartments are already scarce in the Saint John area and, with the market getting tighter, Narinder Singh worries that the poor are going to have to start making some tough choices.
Noel Chenier/Telegraph-Journal
Narinder Singh, general manager of Saint John Non-Profit Housing Inc., says the fact there are only so many city apartments has always been an issue. But the problem is getting worse.
"When people are paying higher rents, they're not paying for other things that they need," he said. Singh is general manager of Saint John Non-Profit Housing Inc.
When you look at the number of people living in poverty who may be on social assistance, and take a look at what the average single parent makes on welfare, they shouldn't be paying more than about $330 a month on rent - that's if you follow the rule of thumb that says no more than 30 per cent of income should be spent on accommodations, he said.
"That's the demographic that's going to have the most difficulty in finding a suitable and affordable place to live."
The rental vacancy rate in the Saint John Census Metropolitan Area (CMA) dropped to 4.3 per cent by April 2008, down from six per cent in 1992 and 5.2 per cent in 2007. The provincial average in April 2008 was 5.3 per cent.
On the other hand, housing starts in the Saint John CMA totalled 687 in 2007, up from 501 in 2005 and 278 in 1998.
These statistics and many others are contained in the Greater Saint John Community Foundation's annual Vital Signs report, which tracks quality of life in 10 key areas, including the gap between rich and poor, health, housing, and the environment - providing insight into the community's strengths, challenges and opportunities.
The influx of people coming into the city to work on energy projects is compounding the problems arising from scarcity of apartments, Singh said.
"When a landlord has to choose between renting a unit that they might have been able to rent before at $550 but they can rent at $700, obviously they're going to rent it at $700. There are a great many people in Saint John who can't afford to pay those rents."
As a result, the leftover apartments aren't the most desirable, he said. "They have to compromise even more for the quality of housing they're getting for the price they're paying.
"There are only so many units to go around. It's always been an issue. It's just getting worse."
What is encouraging, he said, is that new apartments are being built so people going into those won't be competing for other accommodations that are driving up rental costs.
"At least now, with the economic growth and the stimulus that's happening, we're seeing a lot of new multiple units being constructed," he said.
"Those units are coming at the top of the market and it's helping to make Saint John's housing stock much more diversified.
"Over the longer term, if we can keep going in that direction, it might alleviate the problem, but only if you do that as well as incorporate more affordable housing as you go forward in creating market units."
Nevertheless, affordable housing is only part of the solution.
"We have to work towards having our citizens be able to afford market housing and get them on the track where they're trained and employable," he said.
"When you combine that with providing affordable housing and with all the other stuff that's going on, we should be moving in the right direction."