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HomeMy WebLinkAboutDSD-20-006 - Affordable Housing Strategy Phase 2 - Housing Needs AssessmentDate:January 24, 2020 To: Council and Corporate Leadership Team From: Justin Readman, General Manager, Development Services cc: Jeff Bunn, Deputy City Clerk Subject:DSD-20-006Affordable Housing Strategy Phase 2: Housing Needs Assessment Regarding Item #7 from the Community & Infrastructure Services Committee recommendation, we ask Council to approve the following revised recommendation: “THAT Council receive report DSD-20-006 (Affordable Housing Strategy Phase2: Housing Needs Assessment, AS AMENDED, and direct staff to proceed to Phase 3: Issues and Options using the Needs Assessment as part of the basis for stakeholder engagement.” Updated information has recently been received from CMHC, KW Realty Board and our year endthat necessitates revisions to the Housing Needs Assessment. Staff have made the changes and posted a revised Needs Assessment.Hard copies will be made available to members of Council.Changes (in bold) include: 1.RevisedKey Finding/Conclusion2–Housing in recent years has become increasingly unaffordable for an increasingly larger share of Kitchener’s population. Incomes are not keeping pace with rising costs of rental and ownership housing. Inflation increased by 18%, average rents have increased by 41%and average housing prices increased by 104% during the period 2009to 2019.Most of the increase in rents and housing prices occurred from2016 to2019. 2.RevisedKey Finding/Conclusion6–Existing rental units in the primary market are not meeting demand. Average rental vacancy rates are 2.2%, despite the additionof 400 new rental units in 2019.Market rental housing is becoming too expensive for an increasing number of people. Based on the number of rental households in core need paying more than 30% of income on housing costs,more than 9,300 new affordable rental housing units are needed for people with householdincomes under $63,000in Kitchener. (A new chart is includedto provide further details on rental housing affordability) 3.RevisedFigure 67: Average Re-sale Price of Houses and Income Required to Own – Updated to include information as of year end. The report previously noted information as at the end of Oct 2019. At 2019 year end,average housing prices had increased between $6,000 to $10,000 depending on housing form from the end of October to the end of December.The higher incomes required to afford the increased prices have been included in the revised figure. 4.RevisedFigure 73: Number of Housing Starts–The 2019 year end total of housing starts is 3,500 units.(The report previously noted 1,500 units as at theend of October 2019) 5.Edits and page renumberinghave been made. REPORT TO: Committee DATE OF MEETING:January 13, 20 SUBMITTED BY:Justin Readman,GeneralManager,Development Services 519-741-2200 ext. 7646 PREPARED BY:Karen Cooper,Manager,Strategic and Business Planning, 519-741-2200 ext.7817 Brandon Sloan, Manager,LongRange&Policy Planning, 519-741-2200 ext.7648 WARD (S) INVOLVED:All DATE OF REPORT:December 23,2019 REPORT NO.:DSD-20-006 SUBJECT:Affordable Housing StrategyPhase 2:Housing Needs Assessment RECOMMENDATION: THAT Council receive Report DSD-20-006 (Affordable Housing Strategy Phase 2: Housing Needs Assessment),and direct staff to proceed to Phase 3: Issues and Options using the Needs Assessment as part of the basis for stakeholder engagement. PURPOSE: This report presentsthe Housing Needs Assessment prepared by staff with contributionsfrom the Affordable Housing Strategy Advisory Committee.The Housing Needs Assessment is included as Appendix Bto this report. The Housing Needs Assessment provides: A common Identification of housing needs and gaps in the existing and projected housing supply Information to addressprovincial requirements in assessing the feasibility of inclusionary policies and zoning to provideaffordable housing indevelopment applications Information to support the development of an Affordable Housing Strategy for the city. BACKGROUND: Over the last several years, the housing situation in Kitchener has significantly changed. The community andCouncil have raised concernsoverthe wide range of housing needs in our community and are seeking direction on local government actions the City can undertake to help address theconcerns. Between 2015 and 2017,the City of Kitchener considered municipal planning and financial tools to support affordable housing and establishedan ongoing programthat provides fee waiver incentives to non-profit housing providers creating affordable housing. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 7 - 1 On June 24, 2019 Council approved the 2019-2022 Strategic Plan,including the Caring Community Goal which focuses in part onhelping to make housing affordable and the strategic action to create an Affordable Housing Strategyby 2020. It is important to Council that the Strategy be developed in collaboration with the Region of Waterloo, the community and the development industry. Council also received on June 24, 2019 a 5 phase Work Plan to complete the strategy, included as Appendix A to this report. Councillors Chapman, Michaud, Schnider and Singh were appointed as Council representatives to the Advisory Committeeproviding advice to staff on developing the Strategy.Funding was provided in the 2019 and 2020 budgets to support the Strategy development. The Strategy is a 2020 Business Plan project. REPORT: Phase 1 ofthe Work Planto develop the Strategy is complete. It included: Developing the project work plan, Draftingthe Advisory Committee Terms of Reference, Draftingan Engagement Plan, RecruitingAdvisory Committee members, Co-Chairs Karen Coviello and Justin Readman hosting the first meeting of the Advisory Committee to review the draft terms of reference and the draft engagement plan. The Housing Needs Assessment attached to this report as Appendix Bcomprises the Phase 2 deliverable of the Work Plan. It included: Collecting, compilingand analyzingvarious aspects of data related to: o Context: activities, o People:Housing demand:Population and household projections,Socio-economic and demographic variables income, household composition, etcetera o Housing Supply:age, condition, form, location o Development Activity:status of meeting growth projections, applications o Homelessness:shelters, supportive and transitional housing, poverty o Gaps:data and information not available, and gaps in housing or services Providing information to help assess the feasibility ofInclusionary Zoning in Kitchener. Figure 1illustrates how the Housing Needs Assessment informsthe Affordable Housing Strategy. Figure 1 -Housing Assessment as Input to Affordable Housing Strategy 7 - 2 Figure 2-Housing Continuum The housing continuumrepresents the range of housing options availableto people. At one end of the continuum there are people in crisis without housing, in shelters, living with housing insecurity, or with housing in a poor state of repair. Further along are people living in transitional and supportive housing or community housing where housing costs are subsidized. In the middle are affordable rental and ownership housingoptions that people with moderate incomes can afford. Until recently most households in Kitchener had a wide range of housing options they could afford,but this is no longer the case. Now, nearly 80% of ownership housing units are only affordable for the 35% of Kitchener households that have high incomes. Undertaking a Housing Assessment helps us understand the forces on the housing continuum that make it more, or less, suitable for people and more, or less, affordable for people. Kitchener is a dynamic city experiencing recent growth and development which is expected to continue in the future. The city attractsa wide diversity of people eager to live and work in the community. The city is changing with taller buildings and a trend to smaller household sizes. Over a 25-year period, Kitchener is expected to grow by approximately 80,000 people, which is equivalent to about 35,000 new households.This growth brings both benefits and challenges. The challenge addressed in the Housing Assessment is the impact on housing affordability for existing and future residents. Key Findings 1.The current housing delivery and support systemis not functioning effectively. Housing needs are not being met and the existing silo approach by levels of government, non-profits, institutions and the private sector is not as effective as needed. 2.Housing in recent years has become increasingly unaffordable for an increasingly . Incomes are not keeping pace with rising costs of rental and ownership housing. Inflation increased by 18%, average rents increased by 35 % and average housing prices increased by 88% from 2008 to 2018. Most of the increase in rents and housing prices occurred between 2016 and 2018. 3.Poverty and Core Housing Need is increasing in the City of Kitchener.Food Bank use is increasing. The most significant increase has been by single people which has nearly 7 - 3 doubled since 2014, from 25% to 49%.The number and percentage of people in Core Housing Need is increasing. In 2016, 12,125 households in Kitchener were in core housing need; making up 13.5% of all households and up from 11.9% of all households in 2011. Most (94.8%) of the households in core housing need were a result of the housing affordability standard, spending more than 30% of household income on housing. 4.Visible homelessness is increasing. People experiencing homelessness are diverse. Youth are a growing part of the homeless population.People experiencing homelessness with addiction and mental health challenges are a growing part of the homeless population. Their challenges are also increasingly more complex, requiring higher levels of support to find and sustain housing and to access treatment. Existing shelter space is not adequately funded, does not meet best practice standards, does not meet diverse needs and not enough shelter space is provided in Kitchener to meet needs. Existing transitional and supportive housing does not meet existing needs in terms of amount of housing or nature of support. Due to the transient nature of people who are homeless, it is challenging to estimate the amount of housing needed, however survey data and shelter use indicate between 250 to 750 supportive housing units are needed to meet existing demand. 5.Existing community housing in Kitchener is not meeting existing demand. There are approximately 4,500 units of existing community housing in Kitchener, representing approximately half of the regional supply. The turnover in community housing accommodation units across the region is 300 units per year. Waiting list information is not readily available in a form that can be analyzed to inform Kitchener specific needs,3,750 households on the waiting list for community housing have requested to live in Kitchener this means over 3,000 new units of community housing are needed in Kitchener, in addition to the existing supply 6.Existing rental units in the primary housing market are not meeting demand.Market rental housing is becoming too expensive for an increasing number of people. Based on the number of rental households in core need,the amount of new affordable rental housing needed for people with low to moderate incomes is over 8,000 rental units. 7.Attaining affordable housing is especially challenging for: Homeless especially for people with mental health and addiction challenges Students and youth Recent immigrants Indigenous people Single parents People earning the minimum wage 7 - 4 People with disabilities with low to moderate incomes Seniors, especially those in rental housing or requiring care. The population aged 65 years and older increased by 35% from 2006 to 2016 and is expected to almost double (increase by 94%) by 2041. 8.Housing data specific to the City of Kitchener has been challenging to collect. Additional work is needed to assess housing for: Homeless Seniors Immigrants Students Future population 9.Renovictions, where tenants are displaced from their homes to allow major renovations or redevelopment to proceed, are not tracked or monitored for Kitchener. Renovictionsremove affordable housing and generally result in much higher rents being charged post-renovation or redevelopment. 10.Housing held for investment is not tracked or monitored for Kitchener. Commodification of housing, where housing is held on speculation, for investment, or used to generate income instead of as a place to live is increasing through Airbnbs, rental condos, or other untracked rental housing types. 11.Kitchener has an experienced non-profit housing sector. The sector is overworked and underresourced. Non-profit housing and service providers have plans and ideas that would be effective in addressing housing challenges. 12.The private sector is interested in developing affordable housing and improving the development review process and planning context to allow more housing to be built. 13.More collaboration is needed between the City and the Region to identify and address housing challenges in Kitchener. Next Steps Everyone living or working in Kitchener is affected by the housing situation. The Needs Assessment is aresource document.Throughout the project further work isrequired on filling the data gaps and detailed affordability analysis. An important component of developing the Strategy is consultation on the Housing Needs Assessment gap analysisand on assessing opportunities and options to address the gaps as illustrated in Figure 1. Consultationforms the focus of Phase 3 of the Work Planand will include people with lived experience. 7 - 5 The Affordable Housing Strategy Advisory Committee will be meeting over the next few months to developproblem/opportunity statementsand discusshousing issues and optionresponses. A Council Strategy session planned for February 24,2020 willprovide Council with opportunitiesto provide further input onissues and options.APhase 3 Issues and Optionsreport will be completed inSpring 2020 toestablish directives for preparingStrategy goals and actions by the end of 2020. STRATEGIC PLAN: 2019-2022 Strategic Plan Caring Communitytheme. Strategic Plan helping to make housing affordable. Strategic Plan Action: Create an Affordable Housing Strategyfor Kitchener by 2020 in collaboration with Waterloo Region, community groups and the development industry. FINANCIAL IMPLICATIONS: The project is within the approved budget. COMMUNITY ENGAGEMENT: engagement strategy with some COLLABORATE for some of the data components. A draft of the Housing Needs Assessment was circulated to the project Advisory Committee for their review and input. Having diverse representation on the committee provides an opportunity to consult with a range of interests on this topic. Development of theAffordable Housing Strategywill have significant engagement components. An engagement plan is being developed with the Advisory Committee, along with engaging with the committee themselves as community collaborators. It is expected that in 2020, a number of tactics toINFORM, CONSULT, COLLABORATE and EMPOWER will be used. INFORM -This report has beennda in advance of the committee/councilmeeting. PREVIOUS CONSIDERATION OF THIS MATTER: DSD-19-134Affordable Housing Strategy Work Program Overview CAO-19-010City of Kitchener 2019-2022 Strategic Plan CSD-17-034Development Incentives for Affordable Housing Implementation CSD-17-018Development Incentives for Affordable Housing Phase 2 CSD-15-085Development Incentives for Affordable Housing Discussion Paper ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services Attachments: Appendix A:Affordable Housing Strategy Work Program Overview Appendix B:Housing Needs Assessment(Can be accessed at: www.kitchener.ca/affordablehousingunder Phase 2) 7 - 6 Appendix A Affordable Housing Strategy Work Program Outline 7 - 7 7 - 8 Housing is one of our most fundamental needs. Its impact goes well beyond a basic requirement for shelter. Our homes shape nearly every aspect of our lives: Health and wellbeing, Educational achievement, Success in the workplace, Security of our retirement, and Dignity in old age The more sustainable and more vibrant communities. It enables public services to be more efficient and effective, and businesses to be more diverse and prosperous. It helps heal social divisions and make cities stronger. 7 - 9 Acknowledgements The City of Kitchener Housing Needs Assessment was prepared by a staff working group consisting of: Lauren Chlumsky, Economic Development Division Karen Cooper, Office of the CAO Sarah Coutu, Planning Division Tim Donegani, Planning Division Preet Kohli, Planning Division Brandon Sloan, Planning Division Nancy Steinfield, Technology Innovation and Services We would like to thank the City of Kitchener Affordable Housing Strategy Advisory Committee for their review and input to this document along with the review and strategy support of Justin Readman and Kathryn Dever. The Affordable Housing Strategy Advisory Committee members are: Council Public Non-Profit Industry Debbie Chapman Kathy Hamilton Lori Trumper Alex Sumner Christine Michaud Linda Terry Lynn McCaulay Mike Maxwell Dave Schnider Martin Asling Karen Coviello George Bikas Paul Singh Margaret Ellis-Young Dan Driedger Stephen Litt LHIN Karen Taylor-Harrison Aleksandra Petrovic Graonic Tracey Appleton Rhonda Wideman Regan Brusse Jessica Bondy Region Al Mills Joe Mancini Academic Ryan Pettipierre Alan Praught Brian Doucet Janice Bock The Housing Needs Assessment is a compilation and synthesis of a significant amount of data that would not be possible without the provision, availability and support of the following: Statistics Canada, Canada Mortgage and Housing Corporation, Region of Waterloo, City of Kitchener, Wellbeing Waterloo Region, Kitchener Waterloo Association of Realtors, Municipal Property Assessment Corporation, City of Kitchener, The Working Centre and others. The direction to pursue this assessment of the housing situation in Kitchener came from the community, Council and staff. With the leadership of Kitchener City Council, this Housing Needs Assessment provides the foundation for developing an Affordable Housing Strategy as part of implementing 2019-2022 Strategic Plan. 7 - 10 Table of Contents EXECUTIVE SUMMARY ..........................................................................................................................8 Key Findings ..................................................................................................................................... 9 1.0 Introduction .............................................................................................................................12 1.1 Background .............................................................................................................................. 12 1.2 Kitchener Affordable Housing Strategy ................................................................................... 14 1.3 Housing Assessment Purpose .................................................................................................. 15 1.4 Housing Assessment Methodology ......................................................................................... 16 1.4.1 Study Area.....................................................................................................................16 1.4.2 Data Sources..................................................................................................................17 1.4.3 Data Methods, Limitations, Assumptions and Gaps.......................................................18 1.4.4 Future Updating of Data................................................................................................19 2.0 Kitchener Context ....................................................................................................................20 2.1 Location ................................................................................................................................... 20 2.2 Economy .................................................................................................................................. 21 3.0 Roles, Responsibilities and Policy Context ..............................................................................23 3.1 Federal Housing Policy Context ............................................................................................... 23 3.2 Provincial Policy Context ......................................................................................................... 26 3.2.1 Housing Services Act, 2011............................................................................................26 3.2.2 Community Housing Renewal Strategy..........................................................................26 3.2.3 Provincial Policy Statement (PPS)..................................................................................26 3.2.4 A Place to Grow: Growth Plan for the Greater Golden Horseshoe (Growth Plan)...........27 3.3 Regional Role and Policy Context ............................................................................................ 27 3.3.1 Regional Corporate Strategic Plan..................................................................................27 3.3.2 Regional Official Plan.....................................................................................................28 3.3.3 Region as Service Manager............................................................................................28 3.3.4 Region as Housing Provider...........................................................................................29 3.3.5 Waterloo Region Housing Master Plan..........................................................................30 3.3.6 Regional 10-Year Housing and Homelessness Plan (2014-2024) and 2019 update.........31 3.3.7 Regional Affordable Housing Strategy............................................................................31 3.3.8 Regional Housing Programs and Incentives....................................................................32 3.4 City of Kitchener Affordable Housing Land Use Planning Policies........................................ 33 3.4.1 Official Plan...................................................................................................................33 i 7 - 11 3.4.2 Zoning...........................................................................................................................34 3.4.3 City of Kitchener Affordable Housing Incentives - Current.............................................35 3.4.4 Municipal Tools.............................................................................................................36 3.5 Non-Profit Sector ..................................................................................................................... 37 4.0 Housing Demand ..........................................................................................................................41 4.1 Population Trends and Projections ......................................................................................... 41 4.1.1 Population Age..............................................................................................................45 4.1.2 Immigration and Ethnic Origin.......................................................................................46 4.2 Household Trends and Projections .......................................................................................... 47 4.2.1 Household Growth and Size...........................................................................................47 4.2.2 Household Tenure.........................................................................................................47 4.2.3 Age of Primary Household Maintainer...........................................................................50 4.2.4 Household Type.............................................................................................................51 4.3 Household Income ................................................................................................................... 52 4.3.1 Median Household Incomes..........................................................................................52 4.3.2 Household Income Deciles.............................................................................................54 4.3.3 Prevalence of Low Income.............................................................................................56 4.3.4 Government Assistance.................................................................................................58 4.3.5 Food Bank Use...............................................................................................................59 4.3.6 Financial Security...........................................................................................................61 4.4 Economic Indicators ........................................................................................................... 62 4.4.1 Labour Force..................................................................................................................62 4.4.2 Industry.........................................................................................................................63 4.4.3 Investor Confidence.......................................................................................................66 5.0 Housing Supply ........................................................................................................................67 5.1 Existing Housing Supply ........................................................................................................... 67 5.1.1 Housing Supply by Mix of Dwelling Types and Tenure....................................................67 5.1.2 Housing Supply by Market.............................................................................................68 5.1.3 Rental Supply.................................................................................................................69 5.1.4 Non-Market Housing.....................................................................................................73 5.1.5 Concurrent Disorder Supportive Housing.......................................................................80 5.1.6 Housing Geared to Students..........................................................................................81 5.1.7 Housing Geared to Seniors............................................................................................81 5.2 Age and Condition of Housing Stock ....................................................................................... 84 5.3 Housing Costs ........................................................................................................................... 86 ii 7 - 12 5.3.1 Homeownership............................................................................................................87 5.3.2 Primary Market Rental...................................................................................................88 5.3.3 Secondary Rental Condominium Apartments..............................................................89 6.0 Housing Development Activity ................................................................................................90 6.1 Housing Starts and Completions ............................................................................................. 91 6.2 Development Process .............................................................................................................. 96 6.3 Housing Outlook ...................................................................................................................... 97 6.3.1 Potential Land Supply / Future Capacity for Development.............................................97 6.3.2 Potential Supply / Capacity Compared to Forecasted Growth........................................98 6.3.3 Current Development Applications and Proposals........................................................99 6.4 Development Costs ................................................................................................................ 101 6.4.1 City of Kitchener Affordable Housing Incentives..........................................................102 7.0 Homelessness, Supportive and Transitional Housing .......................................................... 103 7.1 Shelter Supply ........................................................................................................................ 103 7.2 Homelessness Prevention: Current Initiatives ...................................................................... 105 7.3 Homelessness in Kitchener 2019 Survey ............................................................................ 107 7.4 Transitional Housing .............................................................................................................. 114 7.5 Supportive Housing ................................................................................................................ 114 7.6 Housing for Post Incarcerated and Post Hospitalization ....................................................... 114 8.0 Housing Affordability Analysis .............................................................................................. 115 8.1 Home Ownership Affordability .............................................................................................. 116 8.1.1 Affordable Home Ownership Provincial Policy Statement Threshold...........................116 8.1.2 All Household Income Deciles Adjusted for 2019.........................................................118 8.1.3 Median Household Income of Various Household Types and Sizes..............................120 8.2 Rental Housing Affordability ............................................................................................. 121 8.2.1 Affordable Rent Provincial Policy Statement Threshold...............................................121 8.2.2 Renter Household Income Deciles Adjusted for 2018..................................................121 8.2.3 Average Asking Rent of Vacant Primary Rental Unit.....................................................122 8.3 Households in Core Housing Need ........................................................................................ 123 8.3.1 Core Housing Need by Household Income Deciles.......................................................125 8.4 Proportion of Income Spent on Housing ............................................................................... 126 8.4.1 Income Spent on Housing by Household Income Deciles.............................................127 9.0 HOUSING GAPS ..................................................................................................................... 128 iii 7 - 13 10.0 CONCLUSIONS ...................................................................................................................... 131 APPENDICIES .........................................................................................................................................1 Appendix 1a: Affordable Housing Definition (Provincial Policy Statement, 2014) ......................... 2 Appendix 1b: Glossary of Key Terms ............................................................................................... 3 Appendix 2: Provincial Inclusionary Housing Information Requirements ....................................... 8 Appendix 3: City of Kitchener Official Plan Policies References ...................................................... 9 Appendix 4: Detailed Tables .......................................................................................................... 18 Appendix 5: References ................................................................................................................. 25 List of Figures Figure 1: Housing Continuum .............................................................................................................. 8 Figure 2: Kitchener Households in Core Housing Need ...................................................................... 9 Figure 3: Overall Affordable Housing Strategy Work Program ......................................................... 14 Figure 4: Estimating Housing Need ................................................................................................... 15 Figure 5: Housing Needs Assessment Components .......................................................................... 16 Figure 6: Manufacturing Sector in Kitchener .................................................................................... 22 Figure 7: Typical Municipal Tools ...................................................................................................... 36 Figure 8: Population Distribution in Waterloo Region (2016) .......................................................... 41 Figure 9: Kitchener Population and Households in 2011 and 2016 and Projected to 2041 ............. 41 Figure 10: Population Growth Levels, 2006 to 2018 ......................................................................... 42 Figure 11: Inter and Intra-provincial Migrants, Kitchener-Waterloo-Cambridge CMA, 2016-2017 . 43 Figure 12: Net Interprovincial, Intra-provincial Migrants and Non-Permanent Residents, 25 to 34 Years Old, Kitchener-Waterloo-Cambridge CMA, 2006 to 2018 ....................................................... 44 Figure 13: Population Growth, Kitchener: 2006 to 2041 .................................................................. 44 Figure 14: Age Distribution (#), 2006 to 2041 ................................................................................... 45 Figure 15: Age Proportion (%), 2006 to 2041 .................................................................................... 46 ................................................................. 46 Figure 17: Household Size, 2001 to 2016 .......................................................................................... 47 Figure 18: Household Tenure: Kitchener, Waterloo Region and Ontario (2016) ............................. 48 Figure 19: Household Size by Tenure, 2016 ...................................................................................... 48 Figure 20: Primary Household Maintainer by Age Group, 2016 ....................................................... 50 Figure 21: Age of Primary Household Maintainer by Housing Tenure, 2016 ................................... 51 Figure 22: Households by Household Type and Tenure ................................................................... 52 Figure 23: Median Household Income by Tenure ............................................................................. 52 Figure 24: Kitchener Households vs Waterloo Region Household Income Deciles, 2015 ................ 54 Figure 25: Household Tenure by Household Income Deciles, 2015 ................................................. 55 Figure 26: Household Types in Low Income, 2015 ............................................................................ 55 iv 7 - 14 Figure 27: Households with Low Income Based on Low-Income Cut-Offs After Tax, 2016.............. 56 Figure 28: Residents Receiving Government Assistance, 2017 ........................................................ 58 Figure 29: Ontario Works Monthly Allowance based on Household Size ........................................ 58 Figure 30: Ontario Disability Support Program Monthly Allowance based on Household Size ....... 59 Figure 31: Communities in Ontario with the highest food bank usage, 2018 .................................. 59 Figure 32: Age of Recipients of Food Assistance in Waterloo Region, 2018 .................................... 60 Figure 33: Household Composition of Recipients of Food Assistance in Waterloo Region, 2018 .... 60 Figure 34: Source of Income of Emergency Food Hamper Recipients in Waterloo Region, 2018 ... 61 Figure 35: Financial Insecurity, Comparing Kitchener with Regional averages (2017-2018) ........... 62 Figure 36: Employment Rates in Kitchener-Cambridge-Waterloo CMA ........................................... 63 Figure 37: Comparison of Kitchener, Waterloo Region and Ontario Labour Force 2002-20016 ..... 63 Figure 38: Employment by Major Industry Sectors: Kitchener-Cambridge-Waterloo CMA ............. 64 Figure 39: Percentage of Employment by Industry: Kitchener-Cambridge-Waterloo CMA ............. 64 Figure 40: 5 Year Change in Employment By Industry: Kitchener-Cambridge-Waterloo CMA ........ 65 Figure 41: Median Employment Income by Industry: Kitchener-Cambridge-Waterloo CMA .......... 65 Figure 42: Construction Values in Downtown Neighbourhoods....................................................... 66 Figure 43: Construction Values in Kitchener ..................................................................................... 66 Figure 44: Dwelling Types .................................................................................................................. 67 Figure 45: Dwelling Types by Tenure ................................................................................................ 68 Figure 46: Households by Market ..................................................................................................... 68 Figure 47: Primary Market Rental Supply by Type and Size, 2018.................................................... 69 Figure 48: Primary Rental Supply by Size Compared to Renter Household by Size.......................... 70 Figure 49: Vacancy Rate of Primary Rental Units 1990 to 2018 .................................................... 71 Figure 50: Vacancy Rate by Apartment Unit Size, 2018 .................................................................... 71 Figure 51: Estimated Change in Primary Rental and Secondary Rental Supply ................................ 72 Figure 52: Existing Non-Market Housing Units by Type and Size ..................................................... 73 of Existing Community Housing in the Region .................................... 73 Figure 54: Community Housing Waiting List Applications for Kitchener by Household Type .......... 75 Figure 55: Households on Waitlist vs Households Housed Region of Waterloo .............................. 75 Figure 56: Community Housing Waitlist Applications and Households Housed 2008-2018 for Region of Waterloo ....................................................................................................................................... 76 Figure 57: Average Wait Times for Community Housing, Waterloo Region 2011-2017 .................. 76 Figure 58: List of Other Non-Profit Providers in Kitchener ............................................................... 78 Figure 59: Existing Affordable Housing for Indigenous People ......................................................... 79 Figure 60: List of Seniors Affordable RGI Housing............................................................................. 80 Figure 61: Seniors' Proportion (%) of Standard Spaces by Rent Range, Kitchener - Cambridge - Waterloo CMA, 2019 ......................................................................................................................... 83 Figure 62: Housing Stock by Construction Period ............................................................................. 84 v 7 - 15 Figure 63: Overall Condition of Housing Stock in 2016 ..................................................................... 84 Figure 64: Condition of Housing Stock by Construction Period ........................................................ 86 Figure 65: Change in Average Rent and Average House Price vs Inflation from 2008 to 2018 ........ 86 Figure 66: Percentage Change in Average Re-Sale House Price Year to Year in Kitchener .............. 87 Figure 67: Average Re-Sale Price of Houses and Income Required to Own, 2019 ........................... 87 Figure 68: Percentage Change in Average Market Rent Year to Year in Kitchener .......................... 88 Figure 69: Primary Market Rent Costs, 2018 .................................................................................... 88 Figure 70: Rent Prices for Occupied Units and Vacant Units 2014 to 2018 ................................... 89 Figure 71: Rents in the Primary and Secondary Rental (Condo) Market in 2018 ............................. 89 Figure 72: New Housing Under Construction .................................................................................... 90 Figure 73: Number of Housing Starts by Dwelling Type, 2000 to October 2019 .............................. 91 Figure 74: Percentage of Housing Starts by Dwelling Type, 2000 to October 2019 ........................ 92 Figure 75: Housing Starts and Completions, 2000 to October 2019 ................................................ 93 Figure 76: Number of Residential Units Created by Type ................................................................. 94 Figure 77: Number of Housing Starts by Intended Tenure, 2000 to October 2019.......................... 95 Figure 78: Percentage of Housing Starts by Intended Tenure, 2000 to October 2019 .................... 95 Figure 79: Potential Capacity and Supply of Land for Development ................................................ 97 Figure 80: Existing Housing Supply and Estimated Capacity vs Forecast .......................................... 99 Figure 81: General Proforma Cost Categories for Land Development ........................................... 101 Figure 82: Applications for Development Incentives in Kitchener.................................................. 102 Figure 83: Shelters in Kitchener (2019) ........................................................................................... 103 Figure 84: Housing and Homelessness Statistics, Region of Waterloo: 2015-2018 ....................... 105 Figure 85: Summary of Indicators Related to Housing Loss Prevention ......................................... 106 Figure 86: Summary of Indicators Related to Supports for People Experiencing Homelessness ... 107 Figure 87: Survey Respondents ....................................................................................................... 109 Figure 88: Housing Status of Respondents ..................................................................................... 109 Figure 89: Supportive Housing Providers in Kitchener ................................................................... 114 Figure 90: Provincial Policy Statement Definitions ......................................................................... 115 Figure 91: House Sales from 2018: Price, Number and Type of Dwelling ...................................... 116 Figure 92: House Sales: Above and Below Affordable Threshold by Type of Dwelling .................. 116 Figure 93: Absorbed New Construction Units by Price and Structure Type, 2018 ......................... 117 Figure 94: Average Resale House Prices Compared to Affordable House Prices based on Household Income Deciles and Dwelling Type (2019) ...................................................................................... 118 Figure 95: Housing Supply by Household Income Deciles .............................................................. 119 Figure 96: Housing Supply by Dwelling Type by Household Income Deciles .................................. 119 Figure 97: Median Household Income of Various Household Types and Sizes vs Income Required to Own Average Priced Dwelling by Type ............................................................................................ 120 Figure 98: Primary Rental Units above and below Affordable Rent Threshold, 2018 .................... 121 vi 7 - 16 Figure 99: Average Market Rents in the Primary Rental Market Compared to Affordable Rents based on Rental Household Income Deciles (2018) .................................................................................. 122 Figure 100: Average Asking Rent of Vacant Primary Rental Unit vs What Households Can Afford, 2018 ................................................................................................................................................. 123 Figure 101: Households in Core Housing Need by Tenure.............................................................. 124 Figure 102: Households in Core Housing Need by Tenure and Household Type ........................... 124 Figure 103: Households with Low Incomes in Core Need, 2016 ..................................................... 126 Figure 104: Households with Moderate Incomes in Core Need, 2016 ........................................... 126 Figure 105: Households Spending 30%+ of Income on Housing by Tenure and Household Type . 127 Figure 106: Proportion of Income Spent on Housing by Tenure and Household Type .................. 127 Figure 107: Rental Housing Gap ...................................................................................................... 130 vii 7 - 17 EXECUTIVE SUMMARY The City of Kitchener is preparing a Housing Needs Assessment to help inform the creation of an Affordable Housing Strategy and as part of the background study required for assessing the feasibility of inclusionary zoning. The Housing Needs Assessment reviews current and emerging housing needs against the existing and projected housing supply in Kitchener. Gaps between the forms of housing needed and what exists or is planned are identified, along with key trends and their implications. With this information, a strategy can be prepared to address the gaps. This is the first time in several decades that Kitchener is undertaking a comprehensive study of affordability across the housing continuum - from homelessness to community housing to affordable and market rental and ownership housing as illustrated in Figure 1. This approach recognizes that affordable housing is critical to t-term prosperity, as attracting and retaining residents of all ages requires housing options that serve all income levels and household types. The Needs Assessment will provide the basis for the Affordable Housing Strategy to help Kitchener maximize the use of senior government programs and private sector incentives to increase the supply of affordable housing. Figure 1: Housing Continuum Source: CMHC Kitchener is a dynamic city experiencing recent growth and development which is expected to continue in the future. Over a 25-year period, Kitchener is expected to grow by approximately 80,000 people, which is equivalent to about 35,000 new households (Region of Waterloo, 2017). The city is attracting a wide diversity of people eager to live and work in the community. The city is changing with taller buildings and a trend to smaller household sizes. This growth brings both benefits and challenges. The challenge addressed in this report is the impact on housing affordability for existing and future residents. All levels of government, the private sector and the non-profit sector have roles to play in addressing housing need in a community. Within our area, the Region of Waterloo performs the following significant roles in relation to affordable housing: 1.Provides policy and strategic direction, including target setting for affordable housing; 2.Designated by the Province as the Service Manager for housing and homelessness; 3.Provides housing and support programs; and 4.Is the largest community housing provider in the region. 8 7 - 18 Part of the reason for undertaking this assessment and developing a strategy was to explore what local roles the City of Kitchener should play that are complementary to the responsibilities and work of the Region, the non-profit sector and the private sector to help ensure affordable housing is provided in the city that meets the needs of existing and future residents. Key Findings The need for affordable housing impacts many Kitchener residents, whether they are homeless, a first time home buyer, a student looking for affordable rent, a single parent needing to find adequate housing, a senior citizen on a fixed income, a recent immigrant looking for affordable accommodation, a person no longer able to work due to a disability or unforeseen circumstance, or simply those with modest incomes. The results of the assessment demonstrate there are gaps between what housing is needed and what is available or planned. Key findings include: 1.The current housing delivery and support system is not functioning effectively. Housing needs are not being met and the existing silo approach by levels of government, non-profits, institutions and the private sector is not as effective as needed. 2.Housing in recent years has become increasingly unaffordable for an increasingly larger sh. I Incomes are not keeping pace with rising costs of rental and ownership housing. Inflation increased by 18%, average rents increased by 35 % and average housing prices increased by 88% from 2008 to 2018. Most of the increase in rents and housing prices occurred between 2016 and 2018. 3.Poverty and Core Housing Need is increasing in the City of Kitchener. Food Bank use is increasing. The most significant increase has been by single people which has nearly doubled since 2014, from 25% to 49%. The number and percentage of people in Core Housing Need is increasing. CMHC defines a household as being in Core Housing Need if its housing costs more than 30% of the household income to pay the median rent, and/or the housing requires major repairs and/or if there is overcrowding in the housing. Figure 2: Kitchener Households in Core Housing Need Source: Statistics Canada, Census Profile City of Kitchener Housing Needs Assessment (2020) 9 7 - 19 4.Visible homelessness is increasing. People experiencing homelessness are diverse. Youth are a growing part of the homeless population. People experiencing homelessness with addiction and mental health challenges are a growing part of the homeless population. Their challenges are also increasingly more complex, requiring higher levels of support to find and sustain housing and to access treatment. Existing shelter space is not adequately funded, does not meet best practice standards, does not meet diverse needs and not enough shelter space is provided in Kitchener to meet needs. Existing transitional and supportive housing does not meet existing needs in terms of amount of housing or nature of support. Due to the transient nature of people who are homeless, it is challenging to estimate the amount of housing needed, however survey data and shelter use indicate between 250 to 750 supportive housing units are needed to meet existing demand. 5.Existing community housing in Kitchener is not meeting existing demand. There are approximately 4,500 units of existing community housing in Kitchener, representing approximately half of the regional supply. The turnover in community housing accommodation units across the region is 300 units per year. 3,750 households on the waiting list for community housing have requested to live in Kitchener this means over 3,000 new units of community housing are needed in Kitchener, in addition to the existing supply Waiting list information is not readily available in a form that can be analyzed to inform Kitchener specific needs. 6.Existing rental units in the primary housing market are not meeting demand. Market rental housing is becoming too expensive for an increasing number of people. Based on the number of rental households in core need, the amount of new affordable rental housing needed for people with low to moderate incomes is over 8,000 rental units. 7.Attaining affordable housing is especially challenging for: Homeless especially for people with mental health and addiction challenges Students and youth Recent immigrants Indigenous people Single parents People earning the minimum wage People with disabilities with low to moderate incomes City of Kitchener Housing Needs Assessment (2020) 10 7 - 20 Seniors, especially those in rental housing or requiring care. The population aged 65 years and older increased by 35% from 2006 to 2016 and is expected to almost double (increase by 94%) by 2041. 8.Housing data specific to the City of Kitchener has been challenging to collect. Additional work is needed to assess housing for: Homeless Seniors Immigrants Students Future population 9.Renovictions, where tenants are displaced from their homes to allow major renovations or redevelopment to proceed, are not tracked or monitored for Kitchener. Renovictions remove affordable housing and generally result in much higher rents being charged post renovation or redevelopment. 10.Housing held for investment is not tracked or monitored for Kitchener. Commodification of housing, where housing is held on speculation, for investment, or used to generate income instead of as a place to live is increasing through Airbnbs, rental condos, or other untracked rental housing types. 11.Kitchener has an experienced non-profit housing sector. The sector is overworked and underresourced. Non-profit housing and service providers have plans and ideas that would be effective in addressing housing challenges. 12.The private sector is interested in developing affordable housing and improving the development review process and planning context to allow more housing to be built. 13.More collaboration is needed between the City and the Region to identify and address housing challenges in Kitchener. City of Kitchener Housing Needs Assessment (2020) 11 7 - 21 1.0Introduction The median home price within the Kitchener market area has increased over 50% over the last four years and the average apartment rent has increased approximately 20%, both of which are above the of rate inflation (CMHC, 2018d, 2019). These housing cost increases coincide with a significant amount of new development in Kitchener. The success of new and expanding businesses are attracting employees who increase the demand for housing in Kitchener. More pressures on housing supply are driving prices up, and all forms of housing are becoming unattainable for many. Existing residents ar housing market has changed. 1.1 Background Up until the 1990s, the City of Kitchener had responsibility for assessing housing within the municipality and provided plans and strategies for the provision of housing, including affordable housing. During the 1990s, the housing portfolio was consolidated and responsibilities were transferred to the Region of Waterloo, who established a housing services program. From 2015-2017, the City of Kitchener conducted research into what tools are available at the local level to further support and incentivise affordable housing development. This included a number of background reports and discussion papers and culminated in the establishment of an initial incentive program via new Council policies. The reports and background information complement and are further expanded by this assessment. In the 2018 City-led Environics Survey, residents self-identified affordable housing as one of the top issues results, staff and Council all reaffirmed the importance of taking action, including at the local issues. As part of the 2019-2022 Strategic Plan, Council approved the following goal and strategic action: Goal: spaces and programs, better engaging, serving and supporting our diverse populations and helping to make housing affordable. Strategic Action: Create an Affordable Housing Strategy for Kitchener by 2020 in collaboration with the Region of Waterloo, community groups and the development industry. City of Kitchener Housing Needs Assessment (2020) 12 7 - 22 City of Kitchener Housing Needs Assessment (2020) 13 7 - 23 1.2 Kitchener Affordable Housing Strategy A healthy and sustainable city is one in which every resident has access to affordable and appropriate housing. The City of Kitchener is preparing an Affordable Housing Strategy to provide the basis for municipal actions to help ensure an adequate supply of housing to meet the full range of incomes and needs in Kitchener. In June 2019, Council approved the five phased work program to undertake the Affordable Housing Strategy as indicated in Figure 3. Figure 3: Overall Affordable Housing Strategy Work Program City of Kitchener Housing Needs Assessment (2020) 14 7 - 24 1.3 Housing Assessment Purpose The purpose of this housing needs assessment is to document and review the housing situation in Kitchener and gain a common understanding of the need and demand for housing and the limitations of the existing and projected supply of housing along the housing continuum. This assessment will form the background and rationale for developing an affordable housing strategy to address housing challenges in the community. This assessment has also been prepared to help satisfy, in part, the requirements of Ontario Regulation 232/18 enacted under the Ontario Planning Act to enable municipalities to implement inclusionary zoning for affordable housing. The regulation requires that prior to adopting inclusionary zoning policies; municipalities develop an assessment report that supports the development of official plan policies and the financial viability related to inclusionary housing. Appendix 2 contains additional detail on the regulatory requirements. A separate study on inclusionary housing is being undertaken as a companion to this assessment. Figure 4 summarizes the process of analysis used to estimate housing need in this report and that will be used to help inform preparation of the Affordable Housing Strategy. Figure 4: Estimating Housing Need City of Kitchener Housing Needs Assessment (2020) 15 7 - 25 1.4 Housing Assessment Methodology The methodology employed in completing this Housing Assessment was informed by the Guide and Data Template for Preparing Housing Needs and Assessment(Ontario Municipal Social Services Association, 2013), the Housing Need and Demand Study Template(BC Housing, 2010) and the Growth Plan requirements. Error! Reference source not found., shows how t he housing needs assessment is comprised of four components, each guided by an analysis question. Figure 5: Housing Needs Assessment Components The Housing Needs Assessment presents most data through graphs and infographics to highlight key findings. Appendix 4 contains the detailed data tables for reference. 1.4.1 Study Area Kitchener is a local municipality in the Region of Waterloo and has the largest population amongst the area municipalities. The primary study area for the housing needs assessment is the City of Kitchener as part of the Region of Waterloo as shown in the following Map 1. City of Kitchener Housing Needs Assessment (2020) 16 7 - 26 The assessment therefore, also looks at the housing situation in the Region as a whole where it provides context for the analysis undertaken for the City of Kitchener. Map 1: Housing Assessment Study Area 1.4.2 Data Sources This Needs Assessment uses data from the most current, reliable and relevant sources available. Sources of data and information include Statistics Canada Census Profiles, and custom tabulation data for 2001, 2006, 2011 and 2016 from the Census as well as the National Household Survey (2011). Other sources include data and information from Canada Mortgage and Housing Corporation (CMHC), Kitchener Waterloo Association of Realtors (KWAR), Municipal Property Assessment Corporation (MPAC), the Region of Waterloo, City of Kitchener and the Working Centre. Source citations are provided for data and information throughout the report. City of Kitchener Housing Needs Assessment (2020) 17 7 - 27 1.4.3 Data Methods, Limitations, Assumptions and Gaps Data has predominantly been presented for the Kitchener Census Subdivision (CSD) which aligns with the boundary for the City of Kitchener. In some instances, data was only available for the Kitchener-Cambridge-Waterloo CMA (Census Metropolitan Area) or the Region of Waterloo. The figures and tables cite where data represents the Kitchener-Cambridge-Waterloo CMA or the Region of Waterloo. Where Kitchener is stated alone, the data is for the Kitchener CSD (City of Kitchener). Household counts reported in this assessment are the universe of households with incomes greater than zero in non-farm, non-reserve private dwellings. There may be some discrepancy in household and population counts due to rounding and the use of data from the mandatory portion of the Census and data from the 25% sample. Also, data in figures and tables may not add up to 100% or to the total number of households or population in all instances due to the suppression of data by Statistics Canada and CMHC. Household Incomes The 2016 Census information is dated so estimates for 2018 and 2019 household incomes have been based on the rate of change in the Canadian consumer price index (CPI) from 2015 to allow a comparison to 2018 rent prices and 2019 house purchase prices. When calculating the household income that would be required for an affordable house purchase, it is assumed that no more than 30% of the household income would spent on housing costs, a 5% down payment, 25 years of amortization, property tax of 0.125% of purchase cost of house per month; 4% mortgage insurance and 5.27% mortgage rate (average Bank of Canada 5-year conventional mortgage rate for 2018). When calculating the household income that would be required for an affordable rent, it is assumed that no more than 30% of monthly household income would be spent on rent payment. Growth Capacity Calculations pertaining to capacity for growth and potential for additional dwelling units and residents are based on the assumptions in the Kitchener Growth Management Background Study: Current Baseline Report. Market Value Municipal Property Assessment Corporation (MPAC) house assessment values and Assessment to Sale Price Ratios (ASRs) has been used in determining the current supply of ownership housing affordable for each household income decile based on market value. The Assessment to Sale Price Ratio is calculated by MPAC by dividing the assessed value of a property by the sale price. The average Assessment to Sale Price Ratio (ASR) of all house resales in Kitchener from 2016 to September 2019 is 0.75. This average ASR has been used to estimate the market value of all ownership housing in Kitchener based on MPAC house assessment values. City of Kitchener Housing Needs Assessment (2020) 18 7 - 28 Household Deciles Income distribution metrics are used to measure the distribution of income in a population. The households and are termed deciles. Household income deciles are presented in the assessment report by showing the upper range of each income decile except for the tenth household income decile as this information has been suppressed for confidentiality purposes. The tenth income decile represents all household incomes which are one dollar or more than the upper range of the ninth income decile. Jenks Natural Breaks Optimization The Jenks natural breaks optimization method has been utilized when mapping to determine the numeric class ranges to show data spatially. With this method, classes are based on natural groupings inherent in the data. Class breaks are identified that best group similar values and that maximize the differences between classes. 1.4.4 Future Updating of Data The Region is responsible for allocating population and housing projections for local municipalities. The population and household projections contained in this assessment are based on the Through 2020, the Region of Waterloo will be conducting a Regional Official Plan review process that will involve updating population and employment projections and allocations, land supply, housing and other targets. At the time of preparing this report, rental information has been based on information contained in the CMHC Rental Market Survey for 2018. In is anticipated that information for 2019 will be available in 2020. Throughout this report are references to the need to obtain additional information or to complete more analysis. A recalibration of some of the data in this assessment may be required in the future, along with updates based on additional information that becomes available. City of Kitchener Housing Needs Assessment (2020) 19 7 - 29 2.0Kitchener Context 2.1 Location Kitchener is one of seven municipalities within the Region of Waterloo. Kitchener is located approximately 100 km (62 mi) west of Toronto in Southwestern Ontario, in the Saint Lawrence Lowlands, as illustrated in the following Map 2. Kitchener has the largest population within the Grand River watershed, and within the Haldimand Tract. The geographic area of the city includes 136.86 square kilometres. Map 2: Location Map City of Kitchener Housing Needs Assessment (2020) 20 7 - 30 2.2 Economy th Kitchener has its economic roots as a manufacturing center. In the post-war decades of the 20 century, suburban sprawl led to the decentralization of the downtown. Modern manufacturing facilities in close proximity to major highways were favoured over aging urban industrial buildings. This pattern of growth prevailed until the effect of globalization and a rising Canadian dollar took its toll on the manufacturing base. In the year 2000, 31.1% of our labour force worked in manufacturing, and by 2011 that dropped to 18.2% (Government of Canada, 2014). With a downtown and manufacturing sector in decline, a change was needed. Kitchener adapted and acted upon new opportunities, and maintained one of the best employment rates in the country as it continued to grow. In 2003, the City of Kitchener began rallying its community around two bold ideas revitalizing the downtown and building out a new knowledge-based economy, focused initially on technology and life sciences. A $110 million economic development investment fund (EDIF) was created to focus on catalytic, urban focused capital projects over 10 years. Early initiatives included the University of Waterloo School of Pharmacy, Wilfrid Laurier Faculty of Social Work, Communitech Hub Startup Incubator, the reconstruction of King Street to a flexible, people-friendly streetscape design (awarded an International Community Places Award in 2010), and the Kitchener Public Library addition. What started with key partnerships and investments, has grown to become a true community- built success story. The community is now the second fastest growing metropolitan area in Canada (Government of Canada, 2018)and is undergoing a significant development boom with 14 residential towers under construction in the core and $8.3 billion in total construction since the inception of EDIF. Over 2,700 new residential units will be built downtown over the next few years more than doubling the downtown core population (Kitchener, 2019). The cost of land downtown has grown from $1 million to $6.7 million per acre in the past 10 years. Manufacturing remains a significant contributor to the local economy at 17.8% of total employment (Government of Canada, 2014) having adapted to integrate advanced technology, artificial intelligence, automation, and machine learning through innovation. The community has seen significant strength in finance and insurance, information technology and digital media, and growth of emerging industries like health technology and creative industries. Such strong local economic success, industry diversification and international recognition and investment, has also contributed to the rising cost of housing. This community is also experiencing challenges with issues such as income stagnation, homelessness, mental health, substance abuse, climate emergencies and an increasing cost of living. success, they drive new product creation, new processes, and new experiences from pursuing creative ideas, and harnessing new skills and insights. This capacity to imagine and create is made possible when basic human needs are fulfilled, like having a safe, secure and affordable place to call home. In order to attract the best talent to drive innovation, Kitchener wants to City of Kitchener Housing Needs Assessment (2020) 21 7 - 31 remain a competitive city including having suitable, affordable housing across the economic spectrum and a focus on social innovation. Ki in 2020, informing key investments and actions that would move the community forward and lead to multigenerational, transformative change. how to lever and make use of these assets to implement strategic plan goals, including affordable housing. The changing housing market and increased housing costs are consistently among the top concerns the community has expressed regarding the challenges it continues to face. Given the that city strategic initiatives align and work to ensure we build a city for everyone, where no one is left behind. Figure 6 Manufacturing Sector in Kitchener City of Kitchener Housing Needs Assessment (2020) 22 7 - 32 3.0Roles, Responsibilities and Policy Context Countries have unique housing systems a means to build enough housing, a housing allocation system, and maintenance of the housing stock. Government plays the central role in creating, sustaining and changing this system. It establishes and enforces the system through legislation defining everything from banking and mortgage lending practices to tax and regulatory measures affecting building, professional practices (e.g., real estate transactions), subsidy programs, and incentives. (Hulchanski, 2003) This section of the report summarizes the role each level of government serves in the housing system. In Canada, it is the federal and municipal levels of government that have played the larger roles in shaping how Canadians are housed. The federal government shaped how by the mid-twentieth century, municipal governments have played the major role in shaping the form and density of residential developments that Canadians live in. Housing is a complex system where every level of government has a role to play. This section of the report also provides a summary of the profit sector role and input from the Kitchener non-profit housing and service providers. In understanding the dynamics of a better understanding of why and how some groups of people benefit more than others is needed images of public housing, government subsidies for low-income households, and programs homeless, however housing policy has also supported the historical prevalence of ownership housing provided by the private market. The private market provides 95% of Canadian households with their housing. Approximately 65% of all households own their own home and half of these owners have paid off their mortgage. About 33% of all renters at any time are passing through the rental market on their way to becoming homeowner. Only 5% -market community housing (public housing, non-profit housing and non-profit co-operatives), the smallest social housing sector of any Western nation except for the United States (Hulchanski, 2003) The Canadian context - existing housing stock includes approximately 4.8% as non-market community housing. 3.1 Federal Housing Policy Context Over a 60+ year period, the Canada Mortgage and Housing Corporation (CMHC) focused public funds primarily on the ownership sector, on making an amortized mortgage market work and helping ensure there was enough serviced residential land available. (Hulchanski, 2003) Most first time homebuyers are able to obtain a mortgage due to the federal Mortgage Insurance Fund (MIF), introduced in 1954 to encourage banks to enter the risky mortgage City of Kitchener Housing Needs Assessment (2020) 23 7 - 33 lending market. Managing the MIF remains today as one of the major functions of CMHC. Since the early 1970s, a steady stream of federal home ownership assistance programs have been 1 necessary to help moderately increase at just under two-thirds (Hulchanski, 2003). Federal homeownership assistance programs included: the Assisted Home Ownership Program, the Canadian Homeownership Stimulation Plan, the Registered Homeownership Savings Plan, and the Mortgage Rate Protection Program, and the First Home Loan Insurance Program (Government of Canada & CMHC, 2019). Owner occupied houses are exempt from capital gains tax. The Department of Finance estimates that this federal subsidy cost $1.5 billion annually, about the same as the annual subsidy bill for all federally subsidized social housing units ever built (Canada, Department of Finance, 2000) (Hulchanski, 2003). Historically, the Federal Government has played a significant role in housing. In 1995, however, the Federal government withdrew from directly developing and managing subsidized non- market housing. Beginning in 2003, the Federal government became re-involved by introducing the Canada-Ontario Affordable Housing Program with Provincial partnership to provide a funding program of development grants/loans. National Housing Strategy (NHS) In November 2017, the National Housing Strategy (NHS) was released. The NHS is a 10-year plan intended to create more affordable homes through public, private and non-profit partnerships. The National Housing Strategy provides potential financing options to assist with future development initiatives. Objectives include: Create New Housing Supply Provide Resources for Community Housing Providers Modernize Existing Housing Promote Innovation and Research According to the Government of Canada website and documentation, the NHS is a $55+ billion, 10-year plan has the goal to ensure Canadians across the country have access to housing that meets their needs and is affordable. NHS priority areas for action include: Housing for those in greatest need - the vulnerable populations. 1 From 60% in 1971 to 68% in 2016 (Statistics Canada) City of Kitchener Housing Needs Assessment (2020) 24 7 - 34 Social housing sustainability Indigenous housing Northern housing Sustainable housing and communities A balanced supply of housing The NHS set ambitious targets to ensure that federal investments and new programming deliver results. This includes: cutting chronic homelessness by 50% removing 530,000 families from housing need renovating and modernizing 300,000 homes building 125,000 new homes The NHS prioritizes the most vulnerable Canadians, including: women and children fleeing domestic violence seniors Indigenous peoples homeless people people with disabilities those dealing with mental health and addiction issues veterans young adults racialized groups newcomers Following the release of the NHS, multi-lateral agreements were signed in April 2018 by the Federal, Provincial and Regional governments to secure the commitments and move ahead with implementation. In May of 2018, the Federal government announced the National Housing Co- investment Fund (NHCF), which provides funding through low-cost loans and capital contributions for the maintenance and construction of affordable housing units in communities across Canada. This fund has been designed to support partnerships between governments, non-profits and the private sector to respond to a broad range of housing needs. A bi-lateral agreement between the Federal and Ontario government was signed, providing an opportunity April 2019. CMHC has been mandated to administer the different funding programs for the NHS. City of Kitchener Housing Needs Assessment (2020) 25 7 - 35 3.2 Provincial Policy Context The Province has the role of housing system steward, and sets the housing policy framework through the Housing Services Act (2011), and other associated legislation such as Bill 108: More Homes, More Choice Act, the Community Housing Renewal Strategy and the Growth Plan for the Greater Golden Horseshoe. The descriptions below are general outlines provided through the Ontario Ministry of Municipal Affairs and Housing. (MMAH, 2019) 3.2.1 Housing Services Act, 2011 The Housing Services Act (2011) is a key piece of legislation governing most aspects of affordable housing in the Province. Its purpose is to allow for community-based planning and provision of housing and homelessness services with provincial oversight and policy direction. It gives Service Managers some degree of flexibility while maintaining RGI requirements, and other aspects of community housing and homelessness programs and mandates subsidy calculations for community housing. 3.2.2 Community Housing Renewal Strategy The Community Housing Renewal Strategy is a multi- community housing system through repair, new construction, supports and improved system efficiency. The Strategy is focused on affordable housing for low and moderate-income households and community-based housing provided by the non-profit, co-operative and municipal housing sectors. It is also intended to build a better community housing system through the implementation of new funding programs, improving waitlists, simplifying rent geared-to-income rules and creation of additional incentives for community housing providers. The overall goal of this Strategy is to increase the supply of affordable and adequate housing, improve access to affordable housing and support individual needs to achieve housing stability, as well as ensure an efficient community housing system with long-term sustainability. 3.2.3 Provincial Policy Statement (PPS) The Provincial Policy Statement (PPS) is a land use vision for how the Province of Ontario manages land and resources over the long-term, with the overall goal of achieving liveable and resilient communities. The PPS provides policy direction on matters of provincial interest, setting the foundation for development and use of land. The PPS includes policies related to housing, and requires municipalities to provide for an appropriate range and mix of housing types and set affordable housing targets that will accommodate the projected population of current and future residents with low and moderate incomes. proposed in 2019 to the Provincial Policy Statement affecting housing supply include: Encourage the development of an increased mix and supply of housing Reduce barriers and costs for development and provide greater predictability City of Kitchener Housing Needs Assessment (2020) 26 7 - 36 3.2.4 A Place to Grow: Growth Plan for the Greater Golden Horseshoe (Growth Plan) communities by better managing growth, is intended to promote economic growth, increase housing supply, create more jobs and build communities that make life easier, healthier and more affordable for people of all ages. The Growth Plan provides direction to plan for a range and mix of housing options that can accommodate households of different sizes and incomes in locations that provide transportation options and access t directions designed to make better use of land, and in particular the density and intensification targets, necessitate a shift in how housing is planned. It requires moving away from traditional concepts that certain structure types are more appropriate for certain household sizes. 3.3 Regional Role and Policy Context The Region of Waterloo is guided by Federal policies and bound by Provincial legislation in creating and implementing specific policies, programs or initiatives in response to regional housing related issues. The Region of Waterloo has various policy documents in place to foster affordable housing options and to improve tenant quality of life. The Region performs several significant roles in relation to affordable housing: 1.Providing policy and strategic direction, including target setting for the provision of affordable housing. 2.The Region is designated by the Province as the Service Manager for housing and homelessness. 3.The provision of incentive programs. 4.It is the largest community housing provider in the region. 3.3.1 Regional Corporate Strategic Plan Regional Council and staff by helping to guide priorities, and ensure programs and services efficiently addresses the needs of the community. The Region is undertaking an update of its Strategic Plan. The five focus areas that carry over from the previous Strategic Plan are: Thriving Economy Sustainable Transportation Environmental and Sustainable Growth Healthy, Safe and Inclusive Communities Responsive and Engaging Government Services City of Kitchener Housing Needs Assessment (2020) 27 7 - 37 Concerning affordability, the updated Strategic Plan has a strong focus in providing outcomes related to affordable housing under Healthy, Safe and Inclusive Communities. Similar to the previous Strategic Plan, the objectives under this section aims to provide quality services and programs to improve access to the supports that contribute to a healthy, safe and inclusive community. This includes improving housing affordability in the Region. 3.3.2 Regional Official Plan Chapter 3 of the Regional Official Plan emphasizes the importance of housing as a basic necessity, stating that a liveable community is one that provides a full range of housing types that is safe, affordable and accessible. The intent of the Official Plan policies are to protect affordable housing within the community and promote intensification through an appropriate mix of housing in terms of form, tenure, density and affordability to satisfy the various physical, social, economic and personal support needs of residents. Chapter 3 includes requirements on affordable housing, setting out criteria for condominium conversions, provisions for multi-unit development and encourages opportunities to offer incentives in providing affordable housing such as density bonuses or property tax exemptions. The Official Plan also regulates community housing with respect to the special needs required by some populations who require accessibility conversions, as well as Regional community housing and emergency shelters. 3.3.3 Region as Service Manager The Housing Services Act (2011) establishes the Region as the Service Manager. More specifically, in this role, the Region is responsible for the following: Housing system planning, including needs and demand analyses, reviewing data and trending in the areas of housing and homelessness and developing the 10-Year Housing and Homelessness Plan and the Housing Action Plan; or incentives from senior levels of government (e.g. Social Infrastructure Funding, Ontario Renovates); Assisting in the development of new affordable rental units through the private and non- profit housing development sector; Administration and funding for the non-profit and co-operative social housing providers from the 1980s and 1990s; Administration of rent supplement subsidies for tenants in many private sector rental and community housing providers and, City of Kitchener Housing Needs Assessment (2020) 28 7 - 38 Ensuring that the minimum number of Rent Geared-to-Income (RGI) units, the Service Level Standard, as identified by the Province, is available to low and moderate income households. The Region works to ensure regionally funded housing and homelessness programs work together to prevent housing loss and support households experiencing homelessness to find and secure housing. Access to these programs is coordinated to help ensure that households are offered the right resources, at the right time, based on their needs and preferences. In recent years, the number of households that are seeking to access programs has exceeded the available resources. Similar capacity pressures are experienced by many municipalities across the province and country and are a result of complex factors including increasing costs of housing and rent, increasing complexity of need, and funding limitations to expand services and develop new affordable units. As a Service Manager the Region is required to ensure that subsidized units are provided within the region. As part of this requirement funding is provided for all programs associated with these types of units. The Region has oversight for other non-market units that receive funding through the Region on behalf of federal and provincial governments, as well as directly providing funding itself. In addition to this, the Region works with community stakeholders to develop short and long term plans to address housing and homelessness issues. An important responsibility as a Service Manager is to operate the Coordinated Housing Access System, which helps facilitate access to community housing for people. In 2019, Regional Council endorsed investment and implementation plans for two housing programs: the Canada-Ontario Community Housing Initiative (COCHI) and the Ontario Priorities Housing Initiative (OPHI). The goal of COCHI is to protect affordability for households in community housing, support the repair of existing housing and expand the community housing supply. The goal of OPHI is to address local housing priorities and repair and build new affordable units across Ontario. The Region has received funding of $12,364,400 for these two programs to be used over three years. 3.3.4 Region as Housing Provider In its other role, as a community housing provider/landlord, the Region operates and manages its community housing portfolio known as Waterloo Region Housing (WRH). WRH Staff oversee tenant management and relations as well as the overall operation of 65 housing developments. The Region established a non-profit corporation in 1986 known as the Waterloo Region Non- Profit Housing Corporation, a Private Non-Profit (PNP) and developed three mixed-income housing communities with a total of 132 units (112 Rent-Geared-to-Income and 20 Market Rent units). In 2001, the Province transferred responsibility of Local Housing Corporations (LHC) to upper or single-tier municipalities. The Region then became owner and manager of an additional 2,557 units of older formerly provincially developed housing with most (85%) developed in the late City of Kitchener Housing Needs Assessment (2020) 29 7 - 39 -Geared-to-Income (RGI) housing units. In 2004 through the transfer of social housing programs from the Province to the Region, the Waterloo Community Housing Inc. (ROWCHI). The Region continued to add to its affordable housing portfolio in 2003 with two units of infill development. In 2004, the Region developed a 32 unit mixed-income building for seniors on the Sunnyside campus (12 RGI & 20 Market Rent). The Region also completed the 30 unit Sunnyside Supportive Housing apartment in 2010. In 2015, two existing mixed-income housing sites known as La Capanna 1 and La Capanna 2, which consist of 92 units (29 RGI and 63 Market Rent) were transferred to ROWCHI. Additionally, the Region purchased a vacant school site in Cambridge in 2016 that has potential to be developed for affordable housing. The current total number of Regionally-owned affordable housing units is 2,814, which includes 92 units held by Region of Waterloo Community Housing Inc. 3.3.5 Waterloo Region Housing Master Plan Even with the 2,440 new affordable housing units created through the Affordable Housing Strategy since 2001 by the non-profit and housing sector, the need for more affordable housing is exponentially growing. The Waterloo Region Housing Master Plan is intended to help address the disparity in creating a minimum of 600 new community housing units. By doing so, WRH will continue to maintain a 30% proportional amount of the overall community housing offered by the Service Manager. The Waterloo Region Housing Master Plan relies on using both Federal and Provincial funding opportunities and changes to legislation to support redevelopment plans. Waterloo Region Housing Master Plan Key Recommendation/Goals 1.The Region, through WRH, should continue to strive to maintain approximately 30% of the overall amount of community housing offered in Waterloo region. 2.With the steady growth in the housing market and the increasing demand for affordable housing in Waterloo region, Waterloo Region Housing should intensify its own stock by a minimum of 600 units to keep pace and maintain its 30% portion of the overall community housing stock by intensifying some of its current 65 sites. 3.That Waterloo Region Housing should not develop housing on new sites beyond the 65 it currently owns because there are more cost-effective ways to achieve this that have and can be achieved by others. It advises that the Region as Service Manager should facilitate the non-profit, co-operative and private sector to continue to develop affordable housing on new sites. 4.Ensure the long-term sustainability both from a financial, environmental and physical perspective for all of the WRH community housing portfolio. City of Kitchener Housing Needs Assessment (2020) 30 7 - 40 5.Establish a divestment decision-making strategy that could create opportunities for possible savings and/or revenue as well as potential service partnerships. 6. -Year Housing and Homelessness Plan. 3.3.6 Regional 10-Year Housing and Homelessness Plan (2014-2024) and 2019 update The 10-Year Housing and Homelessness Plan sets out how the Region manages affordable housing and facilitates ending homelessness. It maps out how the Region provides housing affordability, coordination of homelessness and related support services, the prevention of homelessness and ending chronic homelessness. A five-year review of the 10-Year Housing and Homelessness Plan was submitted to Regional Council on November 5, 2019. Previously, the Region presented housing and homelessness data at a program level via the annual Housing Stability Data Summary (Region of Waterloo, 2018). This approach described program trends, but did not describe the ways the programs worked together as a system. In 2018/2019, these housing and homelessness programs began using a shared database that allows for shared service planning and case management across programs, real-time data collection, and evidence-informed service planning. This system-wide approach focuses on the interconnectedness between programs and illustrates the efforts to prevent housing loss and support those who are experiencing homelessness to secure housing. The 10 Year Plan directly addresses this need for additional and alternate programs. The plan lists five strategic directions that focus on creating new and maintaining existing affordable units, expanding supports, and improving the effectiveness of a person-centred housing and homelessness system. The Region will continue to track housing outcomes to identify ways to enhance services and inform implementation of the 10 Year Plan. As part of the updated 10-Year Housing and Homelessness Plan a target is being established that 30% of new housing over the next 10-20 years should be affordable (primarily aimed at rental). Redevelopment of regional community housing sites will contribute to achieving the annual affordable housing targets. The premise is that the existing amount of affordable housing should be retained. Should any be lost or agreements expire and higher rents occur, this would require an even further percentage of new development to be affordable. The 2019 annual funding allocation for the Housing Services Service Area is $41.6M comprised of Federal, Provincial, and Regional levy funding. This annual funding supports the 10 Year Plan. 3.3.7 Regional Affordable Housing Strategy set a goal of creating a minimum of 1,000 new affordable units, including new rental units, rent supplement units and affordable home ownership. The goal was later increased to 1,500 new units. In 2014, a new goal of addressing 700 low and moderate-income households through the creation of 350 new affordable housing units and the preservation of 350 existing units was initiated. City of Kitchener Housing Needs Assessment (2020) 31 7 - 41 While the goals were achieved, the overall population growth of the Region and subsequent increase in property values has rendered the goals of the Strategy insufficient in addressing the growing gap in affordability. Even with the 2,440 new affordable housing units created through the Affordable Housing Strategy since 2001 by the non-profit and housing sector, the need for more affordable housing is growing faster than the creation of new affordable housing. 3.3.8 Regional Housing Programs and Incentives Through the Region of Water offered to help support and implement the various Regional plans and strategies. This ranges from emergency shelter and homelessness programs to supportive housing and ownership support. Some of the primary incentives to create affordable housing offered through the Region currently includes: Capital Grants application based grant program through a Request for Proposal system when funds are available. The grant would help cover capital and associated costs with developing new affordable and supportive housing units. Secondary Suites continual application based funding administered through the Ontario Renovates program. The funding helps pay for the cost of creating an additional dwelling rental unit within a house subject to certain qualifying criteria. Funding for home repairs (including installation of accessibility features) is also offered through the Ontario Renovates Program. Rent Supplement a program for landlords or rental units to make dwelling units available to individuals on the community housing wait list. If qualified, the Region enters into an agreement and covers the difference between the typical rental amount and how much the tenant is able to afford. Regional Development Charge Grants for those projects that receive Capital Grants they may be eligible for a grant to offset the payment of the Regional portion of development charges which is typically at the building permit stage. Affordable Home Ownership Program eligible applicants are provided with a loan for the down payment on the purchase of a new or resale home. This program is operated on behalf of the Federal and Provincial governments. Others include: lower tax ratio for new apartment units, brownfield incentive program, and connection with CMHC programs and funding. programs and further research. Additional information is available through the Region of Waterloo housing website. City of Kitchener Housing Needs Assessment (2020) 32 7 - 42 3.4 City of Kitchener Affordable Housing Land Use Planning Policies Local municipalities have a land use planning responsibility and can play a role in the support and provision of affordable housing. Some of this role includes: Use housing assessments, housing and homelessness plans, and affordable housing strategies to guide development of municipal planning policies and approaches. Identify range of planning and financial tools that are available and create enabling frameworks for their use Develop and implement official plan policies and zoning to direct development and promote the availability of a full range of housing types to meet range of identified needs. This includes implementing policies to permit additional units, as well as enabling policies needed to use planning and financial tools. Inclusionary Zoning is a new tool that municipalities can explore the utilization of through specific studies and the adoption of policies and incorporating into the Zoning By-law. 3.4.1 Official Plan Kitchener's Official Plan provides a roadmap to follow in managing future growth, land uses, and environmental protection. The plan contains objectives and policies to assist in coordinating our future planning and development, to ensure the specific needs of the community are met. Although the Official Plan is concerned mainly with land use and physical development of the city, it also aims to balance the social, economic and environmental interests of the community. The policies of the Official Plan support the provision of suitable, affordable and attractive living accommodations for all its residents as housing is a basic necessity and determinant of quality of life. The policies seek to address the characteristics and types of housing that may be required community settings in which the housing is located to support a complete and healthy community. Appendix 3 contains a more detailed list of official plan policies related to housing. Official Plan Objectives To provide for an appropriate range, variety and mix of housing types and styles, densities, tenure and affordability to satisfy the varying housing needs of the community through all stages of life. our needs and in accordance with the Kitchener Growth Management Program. To ensure that new residential areas and the redevelopment of lands for residential uses and residential infill projects reflect a high standard of urban design. City of Kitchener Housing Needs Assessment (2020) 33 7 - 43 To locate and integrate housing opportunities with local stores and services that are accessible by active transportation and public transit. To encourage and support the retention and rehabilitation of older housing or the reconstruction of existing housing to maintain the housing stock and the stability and community character of established residential neighbourhoods. To encourage and support live/work units and home occupations at appropriate locations throughout the city. 3.4.2 Zoning A municipal zoning by-law plays a key role in the location and type of housing that is permitted. Throughout Kitchener, duplexing (e.g. establishing a basement apartment or second unit within a house either through a conversion or via new construction) is permitted as of right (e.g. with no additional regulations compared to a single detached dwelling) since 1994. In addition, Kitchener has a long standing zoning practice that permits blended residential and commercial residential (mixed use) zones. This means that a range of dwelling types (single detached, semi- detached, townhouses, multiple dwellings-apartments) are permitted in a wide variety of areas of the city and often within the same zone. The City adopted a comprehensive new zoning by-law in 2019. Provision of housing, and affordable housing, was a key theme. Key amendments were made to assist in providing affordable housing include: This would be permitted within an existing dwelling/building or in the rear yard, thus ; Significantly reducing parking regulations for many land uses and zones; Enhancing mixed use and commercial zones regarding the permission of dwelling units; Recommendation regarding the review of lodging houses. In adopting the new zoning bylaw, the issue of regulation of lodging houses in the Official Plan and Zoning By-law was referred to the Affordable Housing Strategy Advisory Committee for further consideration. This came about as the result of the request by the Waterloo Region Yes In My Backyard organization (WRYIMB) to allow lodging houses throughout all residential neighbourhoods in Kitchener. WRYIMB noted that the Ontario Human Rights Commission has called for elimination of minimum separation distances for lodging houses on the grounds that they constitute discriminatory people zoning. City of Kitchener Housing Needs Assessment (2020) 34 7 - 44 3.4.3 City of Kitchener Affordable Housing Incentives - Current The provision of affordable housing is a priority in Kitchener. Often, one of the barriers to building affordable housing units is financial. In 2017, two Council Policies were established to encourage the development of new affordable rental housing units: Council Policy FIN-GRA-2007 - Development Application Fees and Building Permit Fees for Affordable Rental Housing Eligible affordable rental housing development applications are exempted from the following fees: i.Pre-submission Consultation requests ii.Committee of Adjustment; iii.Official Plan Amendment; iv.Zone Change; v.Site Plan (Full, Stamp Plan A, Stamp Plan B); vi.Plan of Subdivision or Plan of Condominium; vii.Demolition Control; and, viii.Building Permit Council Policy FIN-GRA-2006 - Development Charges Payment for Affordable Rental Housing eligible affordable rental housing providers may pay the City portion of Development Charges prior to occupancy, rather than at the issuance of a Building Permit. Eligibility criteria for both policies includes that proponents must be a Not-For-Profit Corporation, a minimum of 20 percent of residential units must be set at or below 80 percent of average market rent for the regional area, and projects are located within 450 metres from transit corridors across the city. A summary of the applications received to date with respect to the Council Policy for development incentives related to affordable housing is provided in Section 6 of this report. City of Kitchener Housing Needs Assessment (2020) 35 7 - 45 3.4.4 Municipal Tools Local municipalities have a number of strategies and tools they can use to help address affordable housing challenges. These can be categorized as follows: Figure 7 - Typical Municipal Tools Some of the planning strategies to support the provision of affordable and appropriate housing include: mixing land uses, intensification, transit-supportive and transit-oriented housing, inclusionary zoning, secondary or additional dwelling units, reduced parking requirements, and alternative development standards. Kitchener had planned to to encourage and achieve affordable housing as a community amenity. The introduction of new provincial legislation (Bill 108) eliminated a Community Benefit Charge study to understand the implications of the legislation. An efficient and timely approval process also assists with reducing costs and helping deliver needed housing in a timely manner. From a financial standpoint, municipalities can consider waiving or deferring various fees, charges and taxes related to the development of affordable housing. Municipalities can establish funds or incentive programs and can strategically use municipal land to support affordable housing. Municipalities can conduct monitoring and reporting on housing information and trends, along with researching the practices in other municipalities. Further tools include educational opportunities, knowledge exchange with the housing and financing industry and sharing the socio-economic benefits for affordable housing development and programs. Another key role that municipalities can play is partnerships and collaboration with other groups both in the for- or non-profit housing sector and with other support services. Direct provision is an option. In Kitchener, a separate entity, Kitchener Housing Inc., was established by the City to develop and maintain affordable housing units. It operates as a municipal non-profit housing corporation, generally at arms length from the city administration, through a board of directors. Advocating and working with other levels of government on funding or other opportunities to advance the provision of affordable housing in the community is another key role. City of Kitchener Housing Needs Assessment (2020) 36 7 - 46 3.5 Non-Profit Sector The non-profit housing sector is community based with the role to provide housing and supports for everyone - families, seniors, people with disabilities, survivors of violence, and many others not served by private rental housing. Funding goes to keeping housing affordable for the long term. Rents are based on real costs and not what the market will bear. Non-profits create inclusive communities, help people who need supports and help housing. (ONPHA, Affordable Today, Affordable Tomorrow) On September 27, 2020 non-profit housing and service providers were invited to a KW Lutherwood/Allin2020 to discuss homelessness and affordable housing. This section of the 1.What is view on the need for housing in our community? 2.What is you future vision for itself what is your dream and what does your organization want to do to help address homelessness and affordable housing in Kitchener? 3.How can the City of Kitchener help your organization address homelessness and affordable housing challenges in Kitchener? Views on Need for Housing Housing System Local level needs to determine where synergies exist Why can't we require developers to do more to step up to the plate? Housing spectrum - the needs are across the board and need to be addressed together - the puzzle is that they're all interrelated Funding system is dictated at the provincial level and focuses on certain elements of housing spectrum - working under these constraints needs to change Looking for general supports to find housing Lack of access to housing is obvious People are losing housing because rent is going up. They are unable to access new housing People are staying in rooming houses longer because there's nowhere else for them to go Families are often precariously housed, on the edge of eviction, etc. System's response to families is better than adults - for example: single males Families who are homeless - moving in with other families creates another pressure Supportive housing - referral to long-term care - difficulty moving between options Aging in place in community housing Aging in place is a huge concern - lots of requests for accommodations - from automatic door openers to bathroom supports Often times they can't afford to move to alternative accommodations How can we adjust and modify the units - maintain in a way that supports these needs? City of Kitchener Housing Needs Assessment (2020) 37 7 - 47 Older adults going into long-term care may have other needs that aren't being met - medical, addiction, etc. Need for housing for new immigrants Shelter Use Numbers are climbing - people that are continuing to come to community kitchen because they are dealing with housing concerns and can't afford other necessities like food and hygiene It is more than housing, people need other supports too Call attention to the need for portable subsidies A lot of new people and new faces coming in for supports Older and younger people seeking resources A lot more younger people Some may not be welcomed - mental health, addictions, etc. Really challenging - shelter system - until more affordable and supportive housing becomes available they feel the disparity the hardest We need something immediately in the meantime - they are desperate and unwell We need to do more to support this population They need to be a part of this big plan - need to understand and identify People matter and deserve something meaningful Mental health and addictions Dual diagnosis often times Break from their current environment - it's not ever just homelessness - always a matter of other factors as well Structured housing options don't fit people with very complex needs Can't have such a rigid system - needs the flexibility to support these needs best Need to be more responsive Acquiring more housing is difficult as an independent organization Requires partnerships to keep going Mental illness - contributes to quicker aging presentation. May have greater needs - impacts of this needs to be considered Older adults Housing is unaffordable - spouse passing on, etc. Units are not accessible Whole spectrum - no specific age one or the other People are waiting in inappropriate accommodations - medical conditions, etc. Housing Wellesley Institute identified lack of housing as one of the greatest medical concerns. A lot of people in this region now can't make the leap to homeownership City of Kitchener Housing Needs Assessment (2020) 38 7 - 48 Gentrification Creates pressure to remove social services from downtown Kitchener Social services needed in the downtown- need to be accessible to people in the downtown core People need to feel respected and that they belong and have a place here Future Vision Systems allows for greater flexibility in how people move through the system. People need a place to call home - money and other supports need o This changes and their needs change over time need flexibility o There are so many other factors that relate into this work. Everything is interconnected Competition for funding dollars turns to collaboration Connections made between the medical and the prison system to appropriate housing o Once someone gets well - they need supports to stay healthy o Need to be housing ready Consider that what is currently being spent to not solve the problem and find ways to use funding to solve the problems How the City of Kitchener Could Help More proactive property standards Tennant has to call to report a negligent landlord. Becomes obvious to the landlord who called and makes tenant vulnerable o Make a routine bylaw inspection to identify buildings that need some oversight o Landlords make small incremental changes that aren't enough - low income people with no opportunity to move anywhere else - more proactive investigation into bylaw standards o Add work done on properties to tax bill o Rental bylaw in Waterloo - gave more agency to city Percentage, payout or penalty for new buildings that do not support affordable housing in the city if they do not accommodate Very little opportunities historically to be able to put these types of sanctions on developers Need to think more outside of the box for inclusionary zoning Can we repurpose buildings for housing or homelessness use? Use space better in these places What is the city fully prepared to do Could be part of the property tax assessment What if affordable housing became a tax? Or a wellness tax? City of Kitchener Housing Needs Assessment (2020) 39 7 - 49 Is there city land that can be used or partnerships that can happen for affordable housing and for a living and learning environment that are not just for students Can we prioritize different developments that are not just the developments we typically City can address parking Parking requirements drive up the cost of housing - reduced parking requirements throughout the whole city Share parking - under PO - zoning bylaw City can better use its huge communications platform to address social issues To continue the conversation that everyone matters - we need to keep going with this message It's not just for those who are touched by this - everyone needs to know they matter and this needs to be relayed to the public As we're figuring this out - we need to keep pushing out this piece - that everyone matters and deserves to feel they belong And when it gets messy and when that happens - this is a call to buckle down and recommit instead of change course Ensuring who is "everyone" - that this definition is reflective of the broader community City can keep educating the community People think homelessness is the person panhandling on the highway Homelessness comes in different forms - there's a whole spectrum Does it mean affordable for people who are most vulnerable or people who are on two incomes? People need to fully understand the stories - the reasons why things need to change Screening - place people in homes - co-housing so people can stay in the same home, and open their doors to people who can use the space alongside them City Practices Hire people who suit different needs versus specifically expertise Mixing staff and designing buildings to create more welcoming spaces Welcoming public spaces are key The session confirmed that Kitchener has an experienced non-profit housing sector that is overworked and underresourced. Kitchener housing and service providers also have plans and ideas that would be effective in addressing housing challenges. City of Kitchener Housing Needs Assessment (2020) 40 7 - 50 4.0 Housing Demand This section of the assessment report presents the demographic and socio-economic trends and characteristics in Kitchener. Reviewing both past trends and future projections helps us to understand the current and future housing demands and needs. 4.1 Population Trends and Projections Kitchener had a population of 233,222 at the time of the 2016 Census. The Region of Wats estimates 2018 year-end population for Kitchener to be 255,070. As shown in Figure 8, Kitchener constitutes 43% of the total population of Waterloo Region. Figure 8: Population Distribution in Waterloo Region (2016) 5% Kitchener 4% 2% 2% Waterloo Cambridge 43% Wellesley 24% North Dumfries Wilmot Woolwich 20% Source: Statistics Canada Community Profiles The Region has forecasted that by 2041, Kitchener will have a population of 310,000 residents and 127,587 households as shown in Figure 9. Figure 9: Kitchener Population and Households in 2011 and 2016 and Projected to 2041 Population % Growth Number of Households % Growth 2011 219,153 6.6% 86,374 8.1% 2016 233,222 6.0% 92,217 6.3% 2021 249,450 6.5% 100,100 7.9% 2026 264,400 5.7% 107,197 6.6% 2031 279,500 5.4% 114,366 6.3% 2036 294,850 5.2% 121,246 5.7% 2041 310,000 4.9% 127,587 5.0% Source: Region of Waterloo K population increased by 14.0% from just fewer than 205,000 in 2006 to approximately 233,000 City of Kitchener Housing Needs Assessment (2020) 41 7 - 51 in 2016. Kitchener saw a higher rate of population increase compared to Ontario as a whole (10.6%) in the same time period. In additional to reporting population census data, Statistics Canada prepares demographic estimates annually for Census metropolitan areas (CMA). Within the Kitchener-Waterloo- Cambridge CMA, the year over year population growth rate has consistently been between 0.5% and 1.0% from 2006 to 2015. However, in 2016 through 2018, the year over year growth rate has increased to over 2%. The growth rate in 2018 was 2.6%, making Kitchener-Waterloo- Cambridge CMA the second fastest growth CMA in Canada. In terms of absolute numbers, on average the CMA grew by 4,650 people per year from 2006 through to 2015, but has seen an average increase in 12,500 people from 2016 to 2018. Figure 10: Population Growth Levels, 2006 to 2018 15,0003.0% 2.5% 12,000 2.0% 9,000 1.5% 6,000 1.0% Rate (%) 3,000 0.5% 00.0% Year over Year Population Growth Net Annual Population Growth (#) KCW CMA #KCW CMA %Ontario % Source: Statistics Canada 17-10-0135-01 Some of the main contributors to the recent population growth are intra-provincial migration and non-permanent residents. As shown in the Figure below, 42% of interprovincial and intra- provincial migrants to Kitchener-Cambridge-Waterloo are from Toronto and 15% are from Guelph and Hamilton. City of Kitchener Housing Needs Assessment (2020) 42 7 - 52 Figure 11: Inter and Intra-provincial Migrants, Kitchener-Waterloo-Cambridge CMA, 2016-2017 Western Canada CMAs, 4% CA, Ontario, 7% Other, 8% Non-CMA/CA, Toronto (CMA), Ontario, 10% 42% Other CMAs, Ontario, Guelph & 14% Hamilton (CMAs), 15% Source: Statistics Canada Table 17-10-0141-01 Part of the attraction to relocate in Kitchener-Cambridge-Waterloo is due to employment opportunities. Comparatively cheaper house prices, especially compared to the Toronto area is also an attraction. This pressures on housing supply has driven both house prices and rents up. Another trend that has been observed is the influx of migrants aged 25 to 34 years old as indicated in Figure 12. Historically, this age group tended to migrate away from Kitchener-Waterloo-Cambridge. Since 2015 there has been a net increase in this age group as a result of migration and non-permanent residents. It is assumed that the strong economy and employment opportunities have influenced decisions for this age cohort to remain in this area or to migrate to this area. This age group is significant in starting households and in starting families. Their impact on the housing market is on the rental and first time buyers market. City of Kitchener Housing Needs Assessment (2020) 43 7 - 53 Figure 12: Net Interprovincial, Intra-provincial Migrants and Non-Permanent Residents, 25 to 34 Years Old, Kitchener-Waterloo-Cambridge CMA, 2006 to 2018 1500 1244 1150 840 1000 500 0 -64 -92 -178 -211 -231 -298 -309 -500 -338 -491 -1000 2006 / 20072007 / 20082008 / 20092009 / 20102010 / 20112011 / 20122012 / 20132013 / 20142014 / 20152015 / 20162016 / 20172017 / 2018 Source: Statistics Canada Table 17-10-0136-01 Kitchener is expected to continue to grow. The Region of Waterloo has projected that the population will grow by 33% from 2016 to 2041 to a total population of 310,000, as indicated in the following Figure 13. Figure 13: Population Growth, Kitchener: 2006 to 2041 310,000 294,850 279,500 264,400 249,450 233,222 219,153 204,668 20062011201620212026203120362041 Source: Statistics Canada Community Profiles, Region of Waterloo Population Forecast Data City of Kitchener Housing Needs Assessment (2020) 44 7 - 54 4.1.1 Population Age All population groups in Kitchener have seen an increase in actual numbers from 2006 to 2016 and are expected to continue to grow through to 2041. However, the population aged 65+ years is seeing a significantly higher rate of increase compared to the rest of the population. The population aged 65 years and older increased by 35% from 2006 to 2016 and is expected to almost double (increase by 94%) by 2041. In 2016, the population aged 65+ years made up 14% of the total population and is forecasted to make up 20% of the population by 2041. Growth in the senior share of population has significant implications for housing as most people desire smaller sized accommodation and are interested in proximity to services by transit as they age. There are also increased pressures to provide housing with supports and health care amenities and for housing to be affordable for seniors on fixed incomes. Figure 14: Age Distribution (#), 2006 to 2041 120,000 100,000 0-19 80,000 20-44 60,000 45-64 40,000 65+ 20,000 0 20062011201620212026203120362041 Source: Statistics Canada Community Profiles, Region of Waterloo Population Forecast Data The number of youth (aged 19 or younger), had a growth rate of about 5% from 2006 to 2016 and is only expected to increase by 21% to 2041. In 2016, the population aged 19 or younger made up 23% of the total population and is forecasted to make up 21% of the population by 2041. The proportion of those aged 20-44 and those in the 45-64 range are expected to steadily climb at a higher rate than the youngest age group and fairly significantly. The most significant leap is from just over 20,000 in 2006 to just over 60,000 in 2041 for the seniors age 65+ group. City of Kitchener Housing Needs Assessment (2020) 45 7 - 55 Figure 15: Age Proportion (%), 2006 to 2041 100% 80% 65+ 60% 45-64 40% 20-44 20% 0-19 0% 20062011201620212026203120362041 Source: Statistics Canada Community Profiles, Region of Waterloo Population Forecast Data 4.1.2 Immigration and Ethnic Origin Kitchener has a higher proportion of immigrants (26%) than Canada as a whole (22%). There are also over 200 different ethnicities represented in Kitchener, making the City a diverse community. Historically, Kitchener had a strong German immigration influence that gave way to broader European immigration trends and now immigration comes from around the world. Unlike other cities, Kitchener generally does not have neighbourhoods or areas of the city with a specific focus on one ethnic group. Given the diverse ethnic composition of Kitchener, housing options also need to be diverse to meet cultural needs of Kitchener residents. This could include for example, inter-generational housing and more dense housing forms. Figure 16: North American 0.07% 2.26% 2.21% Aboriginal 9.82% 1.45% 15.85% British Isles origins 0.30% 1.98% French origins 8.36% Western European 8.89% Northern European 24.84% Eastern European 1.05% 17.05% Southern European Other European 5.88% City of Kitchener Housing Needs Assessment (2020) 46 7 - 56 4.2 Household Trends and Projections Characteristics of households are directly related to determining the kind of housing needed. Trends in household growth and size, tenure, age of household maintainers and type of households will direct the varying kinds of housing needed. 4.2.1 Household Growth and Size The total number of households is projected to be almost 128,000 by 2041. The forecasted 38% increase in households is projected to outpace population growth (33%), because of an expected continuing decrease in the average size of households. The average household size is expected to decrease from 2.6 people in 2006 to 2.4 people by 2041. This change is due to an increase in the number of one person households and two person households. Two-person households make up the largest proportion of households in Kitchener, comprising of a third of all households. One person households make up the second largest portion of households at 27%. Since 2001, these two household categories have accounted for an increasingly larger proportion of households in Kitchener. Figure 17: Household Size, 2001 to 2016 2016 1 person 2011 2 persons 3 persons 2006 4 persons 2001 5 or more persons 0%20%40%60%80%100% Source: Statistics Canada Community Profiles 4.2.2 Household Tenure The proportion of households that are owners in Kitchener decreased from 64.3% in 2006 to 62.1% in 2016. However, in terms of actual numbers, the number of owner households in Kitchener increased by 6,095 (11.9%) from 2006 to 2016. In comparison, the number of renter households during the same time period increased by 6,630 (23.3%) and the proportion of households that are renters increased from 35.7% to 37.9%. The trend for a greater portion of households to rent will increase the demand for rental housing supply. City of Kitchener Housing Needs Assessment (2020) 47 7 - 57 Kitchener has a smaller percentage of homeowners compared to the Region and Ontario. In 2016, 62.1% of all households in Kitchener were homeowners compared to 68.2% in the Region of Waterloo and 69.8% in Ontario. Figure 18: Household Tenure: Kitchener, Waterloo Region and Ontario (2016) Ontario 69.8%30.2% Region of Waterloo 68.2%31.8% Kitchener 62.1%37.9% Owner Households %Renter Households % Source: Statistics Canada Community Profile One-person renter households made up the largest proportion of all renter households at 41.2% (14,420 households) in 2016 followed by two-person households at 31.5% (11,020 households). The trend in smaller household size indicates a need for smaller housing, particularly for rental units, although there is still a need for larger sized rental housing units for households with children. Two-person owner households made up the largest proportion of all owner households at 34.1% (19,525 households) in 2016. One person, 3 person and 4 person households each had nearly a 20% share of ownership housing. Figure 19: Household Size by Tenure, 2016 50.0% 41.2% 34.1% 40.0% 31.5% 30.0% 19.0% 18.5% 18.3% Owner 20.0% 13.0% 10.2% 8.1% 6.2% Renter 10.0% 0.0% 1 person 2 persons 3 persons 4 persons 5 or more persons Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 48 7 - 58 As shown on the following Map 3, renters are more prevalent older areas of Kitchener, in proximity to the Central Transit Corridor along the new ION light rail transit route and main express bus lines. There is also a moderate amount closer to Conestoga College and near community scale commercial areas on the east and west sides of the City. Map 3: Number of Renter Households in Census Tracts Source: City of Kitchener City of Kitchener Housing Needs Assessment (2020) 49 7 - 59 4.2.3 Age of Primary Household Maintainer Households led by adults aged 45 to 64 years made up the largest share of households in Kitchener in 2016 at 40% of all households. Households led by young adults aged 24 years and younger made up the smallest share at 3% of all households. Households led by seniors aged 65 years and older made up approximately one fifth (21%) of all households in 2016. These shares of primary household maintainer by age group are shown in the following Figure 20. Figure 20: Primary Household Maintainer by Age Group, 2016 3% 21% 15 to 24 years 36% 25 to 44 years 45 to 64 years 65+ 40% Source: Statistics Canada, 2016 Custom Tabulation Senior-led households saw the highest rate of increase; increasing by 33.2% from 14,475 households in 2006 to 19,295 households in 2016. Youth-led households decreased 7.8% from 3,270 households in 2006 to 3,015 households in 2016. In 2006, 86% of households led by young adults aged 15 to 24 year olds rented their homes compared to 81% in 2016. The decrease in the number of households led by young adults aged 15 to 24 year olds could be an indication of this age group facing affordability challenges entering into both the rental or owner housing market and continuing to reside at home longer with their parents. As indicated in the following Figure 21, the proportion of homeownership generally increases with the age of the maintainer up to age 65 and then decreases for senior led households. Some senior households choose to downsize, selling their homes and moving to the private rental market. However, the portion of senior led households that are owners is up from 63.3% in 2006 to 67.3% in 2016, suggesting a growing trend for seniors to age in place, or to buy a smaller home. This indicates the need for forms of housing which enable seniors to age in place. City of Kitchener Housing Needs Assessment (2020) 50 7 - 60 Figure 21: Age of Primary Household Maintainer by Housing Tenure, 2016 65+ years 55 to 64 years 45 to 54 years 35 to 44 years 25 to 34 years 15 to 24 years 0%10%20%30%40%50%60%70%80%90%100% OwnerRenter Source: Statistics Canada, 2016 Custom Tabulation 4.2.4 Household Type Among all household types, couples with children made up the largest portion of households in Kitchener in 2016 (28.1%), followed by one person households (27.1%). Owner households are predominantly made up of couples with or without children, accounting for almost 65% of owner households. One person households are the primary type of renter households (41.2%), followed by couples without children (17.5%). Housing options suited to family-sized households (couples with children, lone parent households and multiple households) are still needed in Kitchener as these households made up 44.4% of all households and 51.5% of owner households in 2016. 1.8% of all households are led by recent immigrants, with more recent immigrant households renting (1,320) than owning (355). Households with a person with a disability made up 32.4% of all households. 11.2% of the population have physical activity limitations and 11.2% have cognitive activity limitations. There is a need for housing options suitable for persons with disabilities. These may include housing with design features to enhance accessibility or housing with support services. The following Figure 22 indicates the distribution of households by household type and tenure. City of Kitchener Housing Needs Assessment (2020) 51 7 - 61 Figure 22: Households by Household Type and Tenure # of % of # of % of # of All % of All Owner Owner Renter Renter Hhlds Hhlds Hhlds Hhlds Hhlds Hhlds Couples without children 22,140 24.0% 16,030 28.0% 6,110 17.5% Couples with children 25,865 28.1% 20,725 36.2% 5,140 14.7% Lone parents 8,790 9.5% 3,995 7.0% 4,795 13.7% Other/multiple-family 6,250 6.8% 4,545 7.9% 1,705 4.9% households One person household 24,940 27.1% 10,570 18.5% 14,370 41.2% Non-census family household 4,145 4.5% 1,350 2.4% 2,795 8.0% with two+ persons Aboriginal Household 1,615 1.8% 615 1.1% 1,000 2.9% Household with member with 29,870 32.4% 16,820 29.4% 13,050 37.4% disability Recent Immigrant Household 1,675 1.8% 355 0.6% 1,320 3.8% Senior Household (65+) 19,300 20.9% 12,995 22.7% 6,305 18.1% Youth Household (Under 25) 3,010 3.3% 410 0.7% 2,600 7.4% Totals do not add up to 100% because household types can be counted under more than one category (i.e. couples with children households may also be categorized as a recent immigrant household) Source: Statistics Canada, 2016 Custom Tabulation 4.3 Household Income Income trends are important factors in the consideration of housing affordability for owners and renters. 4.3.1 Median Household Incomes Median household incomes for renters and owners differ considerably. In 2015, the median income for renter households ($45,965) was less than half the median income for owner households ($93,559) as shown in the following Figure 23. Figure 23: Median Household Income by Tenure 2005 2015 2019* Owner $74,945 $93,559 $100,473 Renter $35,777 $45,965 $49,362 Total $58,920 $70,774 $76,004 Source: Community Profiles, Statistics Canada, Consumer Price Indexes for Canada, monthly (V41690973 Series.)* Estimated based on Consumer Price Index The increase in median household income from 2005 to 2015 for all households is generally consistent with the rate of inflation (consumer price index) over the same time period. Accordingly, the median household income for 2019 has been estimated to be around $76,000 based on inflation. City of Kitchener Housing Needs Assessment (2020) 52 7 - 62 As shown in the following Map 4, the median income varies considerably across the City by census tracts. The older parts of the city and the downtown area have households with lower median incomes compared to more recently developed areas of the city. This may change in future years as the effect of condo development ownership is felt in the downtown. Map 4: Median total income of households within Census Tracts, 2015 Source: Statistics Canada, Census Profile City of Kitchener Housing Needs Assessment (2020) 53 7 - 63 4.3.2 Household Income Deciles Household income deciles distribute all households into ten equal portions based on income. There is one tenth (or 10%) of all households in each income decile. Household income deciles for Waterloo Region are used as the region is considered the regional market area in the provincial definition of affordable housing. Figure 24 shows the proportion of Kitchener households based on Waterloo Region income deciles. While there are 10% of Waterloo Region households in each decile, the data shows that there are slightly greater shares of Kitchener households in the first six lower income deciles (and particularly in the first three) and fewer in the upper income deciles. This indicates a greater share of households in low income and moderate incomes in Kitchener than in Waterloo Region as whole. Of the 30,695 households who had low incomes in 2015, one third had incomes less than $23,000, on third had incomes between $23,000 and $37,000 and one third had incomes between $37,000 and just under $50,000 as shown in Figure 24. Figure 24: Kitchener Households vs Waterloo Region Household Income Deciles, 2015 Decile Income Range Waterloo Kitchener Kitchener Region % of hhlds # of hhlds % of hhlds Decile 1 10% 10.9% 10,000 Households in Decile 2 10% 11.3% $23,314 to $37,266 10,450 Low Income Decile 3 10% 11.1% $37,267 to $49,932 10,245 Decile 4 10% 10.8% $49,933 to $63,263 9,980 Households With Moderate Decile 5 10% 10.7% $63,264 to $77,566 9,830 $77,567 to $93,266 9,440 Incomes Decile 6 10% 10.2% Households Decile 7 10% 10.0% $93,267 to $111,735 9,180 With High Decile 8 10% 9.1% $111,736 to $136,609 8,365 Income Decile 9 10% 8.6% $136,610 to 177,016 7,915 Decile 10 10% 7.3% $177,017+ 6,735 Source: Statistics Canada, 2016 Custom Tabulation th It should be noted that historically and in the provincial definition, the 60 income decile was considered to represent moderate incomes. However with a range of $77,567 to $93,266, most people would not consider these in reality to be moderate household incomes. The following Figure 25 shows owner and renter status by low, moderate and high income deciles in 2015. Over 18% of households with incomes below approximately $50,000 owned their home. This group would likely include households who purchased homes some time ago, were mortgage free and were seniors with fixed incomes. Only 11% of households with high incomes over $93,000 rent, while nearly 50% of household with high incomes own their City of Kitchener Housing Needs Assessment (2020) 54 7 - 64 housing. Given the 50% increase in housing costs in the last few years since 2015, it is expected that more households are currently renting than this data suggests. Figure 25: Household Tenure by Household Income Deciles, 2015 80.0% 57.4% 60.0% 49.5% 31.9% 31.6% 40.0% Owner 18.6% 11.0% 20.0% Renter 0.0% Low Income Moderate IncomeHigh Income ($49,933 to $93,266)($93,267+) Source: Statistics Canada, 2016 Custom Tabulation As indicated earlier, approximately one third of all households in 2015 had low incomes. The following Figure 26 highlights what types of households had low incomes. One person households have the highest incidence of low incomes. Youth and seniors also have high incidence of low income, as do recent immigrants, and lone parent households. Figure 26: Household Types in Low Income, 2015 % of Household in # of Households Household Type Low Income in Low Income Non-census-family one person household 66.5% 16,585 15 to 24 years 66.5% 2,005 65+ 50.8% 9,795 Recent immigrant (2011 - 2016) 48.8% 3,870 Lone-parents 46.4% 4,080 Aboriginal identity 41.8% 675 Non-census-family household with two or more persons 37.1% 1,535 Visible minority 35.8% 5,255 Couples without children 22.7% 5,030 Couples with children 11.0% 2,850 Other/multiple-family households 9.5% 595 ALL HOUSEHOLDS 33.3% 30,695 Data in columns do not add up to Totals of all households because household types can be counted under more than one category. I.e couples with children households may also be categorized as a recent immigrant household Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 55 7 - 65 4.3.3 Prevalence of Low Income The prevalence of low income in a community is an indicator of the need for affordable housing. Low Income Cut-Offs After Tax (LICO-AT). These are income thresholds below which a family will likely devote a larger share of its income on necessities such as food and shelter compared to the average family in the area. The approach estimates an income threshold at which families are expected to spend 20% more than the average family on food, shelter and clothing. Housing costs are usually the greatest contributor to household costs. As part of the Kitchener Waterloo Cambridge CMA, a large urban population centre the family income cut off varies by size of family from $20,386 for a one person household to $38,544 for a 4 person household up to $53,460 for a 7 person household (Government of Canada, 2017b). The following Figure 27 outlines that in 2015, 18,560 households (8.1% of all households) in Kitchener met the LICO-AT cut offs. Kitchener has a higher incidence of households that meet the low income cut off compared to the region. Kitchener has nearly half of the households in the region who meet the low-income cut off. Figure 27: Households with Low Income Based on Low-Income Cut-Offs After Tax, 2016 Kitchener Region of Waterloo # % # % 0 to 17 years 4,770 9.8% 8,965 7.8% 18 to 64 years 13,025 8.6% 27,840 8.2% 65 years and over 770 2.5% 1,590 2.2% TOTAL Population in Low Income 18,560 8.1% 38,395 7.3% Source: Statistics Canada, Census Profiles As shown on the following Map 5, households with lower incomes are more prevalent in older areas of Kitchener, in proximity to the Central Transit Corridor along the new ION light rail transit route and main express bus lines. This is also the case for renter households as renter households also have more incidence of low income than owner households. Property in proximity to the ION light rail transit route is also more likely to redevelop given recent zoning changes. Work is underway to map rental housing by building age and to assess affordability of the rental housing stock. This is important to determine as it is believed that older affordable rental buildings are more likely to be redeveloped. Concern has also been expressed that where redevelopment is anticipated property owners do not maintain the rental buildings. This could result in existing tenants being displaced and unable to afford new accommodation. Renovictions remove affordable housing and generally result in much higher rents being charged post renovation or redevelopment. Renovictions, where tenants are displaced from their homes to allow major renovations or redevelopment to proceed, are not tracked or monitored for Kitchener. City of Kitchener Housing Needs Assessment (2020) 56 7 - 66 Map 5: Percentage of Low Income Households By Census Tract Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 57 7 - 67 4.3.4 Government Assistance Currently, there is limited data available in regards to the distribution and composition of individuals or households receiving financial assistance or benefit. There is limited data available to assess the change over time, or other comparison or trend analysis. The figures below provide some initial information one those that are receiving financial assistance or benefit through government programs. Figure 28: Residents Receiving Government Assistance, 2017 # of Recipients % of Population Employment Insurance Benefits 13,490 5.8% Federal Child Benefit 26,690 11.4% Old Age Security/Net Federal Supplements Benefits 31,870 13.7% Canada/Quebec Pension Plans 40,530 17.4% Workers' Compensation Benefits 3,660 1.6% Social Assistance Benefits 12,390 5.3% Provincial Refundable Tax Credits/ Family Benefits 74,000 31.7% Other Government Transfers 9,800 4.2% Source: Statistics Canada - Economic dependency profile of individuals, 2017, Web Table 11-10-0033-01 Figure 29: Ontario Works Monthly Allowance based on Household Size Total Dependent Dependent Basic Family Size Shelter Monthly 18+ Allowance Allowance 1 Single 0 0 $393 $390 $733 2 Couple 0 0 $494 $642 $1,136 3 Couple + 1 1 0 $494 $697 $1,191 3 Couple + 1 0 1 $652 $697 $1,349 4 Couple + 2 2 0 $494 $756 $1,250 4 Couple + 2 1 1 $652 $756 $1,408 4 Couple + 2 0 2 $826 $756 $1,580 5 Couple + 3 3 0 $494 $815 $1,309 5 Couple + 3 2 1 $652 $815 $1,467 5 Couple + 3 1 2 $826 $815 $1,641 5 Couple + 3 0 3 $1,001 $815 $1,816 6 Couple + 4 4 0 $494 $844 $1,338 Source: Region of Waterloo (Employment & Income Support) and Waterloo Region Immigration Partnership City of Kitchener Housing Needs Assessment (2020) 58 7 - 68 Figure 30: Ontario Disability Support Program Monthly Allowance based on Household Size Basic Allowance Basic Allowance Total Monthly Dependent Basic Allowance Shelter Dependent 18+ Allowance 0 0 $672 $497 $1,169 0 0 $969 $781 $1,750 1 0 $969 $846 $1,815 0 1 $1,157 $846 $2,003 2 0 $969 $918 $1,887 1 1 $1,157 $918 $2,075 0 2 $1,367 $918 $2,285 3 0 $969 $991 $1,960 2 1 $1,157 $991 $2,148 1 2 $1,367 $991 $2,358 0 3 $1,578 $991 $2,569 4 0 $969 $1,026 $1,995 Source: Region of Waterloo (Employment & Income Support) and Waterloo Region Immigration Partnership 4.3.5 Food Bank Use In 2018, 14,469 households (5%) within Waterloo Region accessed food assistance and there was a 28% increase in the number of households accessing food assistance for the first time (Food Bank, 2019). In 2018, Kitchener Centre had the 4th highest food bank usage of all communities in Ontario as shown in the following Figure 31. Figure 31: Communities in Ontario with the highest food bank usage, 2018 1. Ottawa-Vanier (15 in 100) 2. Hamilton Centre (12 in 100) 3. Thunder Bay-Atikokan (11 in 100) 4. Kitchener Centre (10 in 100) 5. Ottawa South (9 in 100) 6. Windsor West (9 in 100) 7. London-Fanshawe (8 in 100) 8. Windsor-Tecumseh (8 in 100) 9. Ottawa West-Nepean (8 in 100) 10. London North Centre (7 in 100) Source: Feed Ontario Food insecurity is not isolated to a particular demographic or circumstance and there are many factors that may contribute to why one is in need of food assistance. In 2018, 35% of food assistance recipients were under the age of 18. Costs associated with raising children, including child care costs, combined with the costs of basics like food and rent, put much pressure on households with children, leaving them vulnerable to poverty and hunger City of Kitchener Housing Needs Assessment (2020) 59 7 - 69 (Food Banks Canada, 2019). Seniors aged 65+ represented only 4% of people receiving food assistance, but are one of the fastest growing age groups accessing food assistance. Figure 32: Age of Recipients of Food Assistance in Waterloo Region, 2018 4% 0-11 yrs 25% 19% 12-17 yrs 18-30 yrs 31-44 yrs 10% 45-64 yrs 20% 65+ yrs 22% Source: The Foodbank of Waterloo Region Almost half of those who received food assistance in 2018 were single as shown in the Following Figure 33. While there are tax benefits that can increase incomes for households with children, single person households do not have the same range of benefits, and often have to rely solely on limited social assistance income if they are unemployed. Figure 33: Household Composition of Recipients of Food Assistance in Waterloo Region, 2018 Single Person 7% 7% Lone Parent 49% Couple with Children 18% Couple without Children 19% Other Source: The Foodbank of Waterloo Region Those receiving social assistance as their main source of income are 11 times more likely to experience severe food insecurity than the general population (Tarasuk, Mitchell, & Dachner, 2014). In Waterloo region in 2018, almost 60% of recipients were receiving social assistance. City of Kitchener Housing Needs Assessment (2020) 60 7 - 70 Over the past three years there has been a 27 per cent increase in Ontario in the proportion of people with employment income who need help from food banks (Feed Ontario, 2019). In Waterloo region in 2018, 16% of those that accessed food banks were employed. Figure 34: Source of Income of Emergency Food Hamper Recipients in Waterloo Region, 2018 Ontario Works (OW) 8% Ontario Disability Support Program (OSDP) 9% 1% Employment Insurance 31% Employment Income 7% Student Loan 1% Old Age Pension 16% Private Disability Other 24% No Income 3% Source: The Foodbank of Waterloo Region The increasing cost of housing and the lack of rent geared to income units are considered factors that have been driving the demand for food banks. In Waterloo Region, almost 80% of food assistance recipients lived in rental housing (Food Bank of Waterloo Region, 2019). 4.3.6 Financial Security that provides a comprehensive picture of the wellbeing of those who live in the Region as a whole and within the specific local municipalities (Region of Waterloo, 2019). Over 1,500 Kitchener residents responded to the survey. The 2018 survey results indicated that Kitchener ranks 5th in the Region for housing security with 40.9% of Kitchener residents spending more than 30% of their income on housing, compared to the 2016 census which reported 23.4%. The survey also showed that Kitchener residents tend to have more economic security than the Regional average. Many Kitchener residents are able to reliably afford food, housing, and basic needs. However, when the focus is shifted from those who have never experienced economic insecurity to those who have, the rates are not insignificant. For instance, approximately 20% experienced an inability to pay their bills on time or to afford their basic needs. Additionally, 17% experienced food insecurity due to not being able to afford, or gain access to, enough food. City of Kitchener Housing Needs Assessment (2020) 61 7 - 71 The following Figure 35 shows the distribution of residents who have experienced financial insecurity, comparing Kitchener with Regional averages. Figure 35: Financial Insecurity, Comparing Kitchener with Regional averages (2017-2018) At least At least once once At least Once in every 6 every 3 once a Area Never past year months months month I could not pay my bills on Kitchener 81.0% 8.0% 4.5% 3.8% 2.6% time (e.g., water, hydro, Region 77.6% 8.1% 5.5% 5.4% 3.5% phone, credit card) I could not pay my Kitchener 93.9% 2.6% 1.3% 1.2% 1.0% mortgage or rent on time Region 91.2% 3.4% 2.2% 1.9% 1.2% I ate less because there was Kitchener 83.0% 4.4% 3.6% 5.0% 4.1% not enough food or money Region 80.9% 4.4% 4.4% 4.5% 5.8% for food I could not afford to pay for Kitchener 88.9% 4.5% 2.6% 2.0% 2.0% transportation to get to Region 86.3% 4.2% 2.9% 2.9% 3.7% where I needed to go I did not have enough Kitchener 78.0% 6.8% 5.9% 3.9% 5.3% money to buy the things I Region 74.5% 7.1% 6.1% 4.9% 7.3% needed -2018 4.4Economic Indicators Economic indicators are discussed in this section of the report. Economic indicators, including employment, labour force, industry, income by industry and investor confidence indicate the direction of the economy. Analysts use them to predict the possibility of investing in the future. 4.4.1 Labour Force The labour force is the number of people working age (15+) that are employed or unemployed. The remainder of the population, those not offering their labour services (e.g. students, parents caring for young children and retired people), are not in the labour force. The percentage of the population choosing to be part of the labour force determines the participation rate. The employment rate is the percentage of the population age 15+ that is employed, whereas the unemployment rate is the percentage of the labour force that is unemployed. The Kitchener-Cambridge-Waterloo CMA consistently has among the highest employment rates in the country, as shown in the following Figure 36. City of Kitchener Housing Needs Assessment (2020) 62 7 - 72 Figure 36: Employment Rates in Kitchener-Cambridge-Waterloo CMA Monthly (October 2019) Total Employed Employment Rate Unemployment Rate Participation Rate 304,100 67.5% 5.4% 71.3% 4,700 YR/YR 5.5% higher than 0.1% lower than 5.6% higher than Change Canada Canada Canada Annual (2018) Total Employed Employment Rate Unemployment Rate Participation Rate 292,200 66.4% 5.1% 70.0% 4,400 Annual 4.8% higher than lowest in 29 years 4.6% higher than Change Canada Canada Source: Statistics Canada, Labour Force Survey Figure 37: Comparison of Kitchener, Waterloo Region and Ontario Labour Force 2002-20016 Kitchener Waterloo Region Ontario 2006 2016 2006 2016 2006 2016 Total Working Age Population 164,275 189,220 380,990 432,125 9,819,420 11,038,440 In the labour force 116,820 130,080 272,530 296,480 6,587,580 7,141,675 Employed 110,150 121,190 257,655 277,785 6,164,245 6,612,150 Unemployed 6,665 8,885 14,875 18,695 423,335 529,525 Not in the labour force 47,455 59,140 108,455 135,645 3,231,840 3,896,765 Participation rate 71.1% 68.7% 71.5% 68.6% 67.1% 64.7% Employment rate 67.1% 64% 67.6% 64.3% 62.8% 59.9% Unemployment rate 5.7% 6.8% 5.5% 6.3% 6.4% 7.4% Source: Statistics Canada Community Profiles 4.4.2 Industry Long-term employment trends show a shift from manufacturing toward employment in the knowledge economy around the time of the 2008/2009 recession and stronger advancements in those sectors continuing through the following decade. Manufacturing continues to be the largest local industry at 17.8% of total employment. City of Kitchener Housing Needs Assessment (2020) 63 7 - 73 Figure 38: Employment by Major Industry Sectors: Kitchener-Cambridge-Waterloo CMA 80 60 40 Thousands employed 20 19971999200120032005200720102012201420162018 ManufacturingProfessional services, business, finance, information, culture Source: Statistics Canada, Labour Force Survey Figure 39: Percentage of Employment by Industry: Kitchener-Cambridge-Waterloo CMA Agriculture 1.1% Construction 9.2% Manufacturing 17.8% Trade 13.3% Transport 5.3% Finance, insurance, real estate 7.7% Scientific & technical 8.4% Business 3.9% Education 8.1% Health care & social assistance 9.3% Information, culture & rec 4.1% Accommodation & food services 5.2% Other services 3.7% Oct-19 Public administration 2.4% Source: Statistics Canada, Labour Force Survey The following Figure 40 shows the changes in employment by type of industry between 2013 and 2018. For example, construction, scientific and technical, and finance and insurance industries have seen considerable employment growth over the past five years City of Kitchener Housing Needs Assessment (2020) 64 7 - 74 Figure 40: 5 Year Change in Employment By Industry: Kitchener-Cambridge-Waterloo CMA change in persons employed Agriculture 1200 Construction 3300 Manufacturing 2300 Trade 1000 Trans. & warehousing 100 Finance, insurance, real estate 2400 Professional, science & tech. 2800 Business, building & other -500 Education -1700 Health care & social assistance 1500 Information, culture & rec 2100 Accommodation & food services -900 Other services 1600 Public administration -700 2013-2018 Source: Statistics Canada, Labour Force Survey Much of the employment growth in the metropolitan area in recent years has been in high- paying industries as shown in the following Figure 41.An increase in the number of people able and willing to pay more for housing contributes to the rising pressure in the housing market in recent years. Industries with the lowest median employment income include service, arts, entertainment and agricultural industries, generally at or below $20,000 individual income. Figure 41: Median Employment Income by Industry: Kitchener-Cambridge-Waterloo CMA $19,792 Construction $44,671 $48,825 Retail Trade $20,679 $39,969 Information & Culture $59,107 $54,961 Real Estate $35,044 $50,975 Business $56,190 $47,240 Health care & social assistance $37,752 $11,886 Accommodation & food services $11,885 $28,201 Public administration $63,986 $0$10,000$20,000$30,000$40,000$50,000$60,000$70,000 Source: Statistics Canada, 2016 Census of population, Statistics Canada Catalogue no. 98-400-X2016381 Housing is increasingly unaffordable to new graduates and entry level employees. With a median household income of $36,132 for those aged 20-24, and $49,548 for those aged 25-29, 2 bedroom and 3 bedroom rental units are out of reach, and for many under 30 years of age, all City of Kitchener Housing Needs Assessment (2020) 65 7 - 75 types of vacant rental units are out of reach. This means that young households have to spend more than 30% of their income on a rental unit that suits their needs (reducing their ability to save money to own a home in the future), rent smaller units, or consider looking to other communities for housing and/or work. Added pressure in the housing market thus has considerable implications for industry and business growth as talent attraction becomes increasingly difficult for companies, particularly for entry level positions. 4.4.3 Investor Confidence Kitchener has seen significant construction activity as a result of major investments such as EDIF Economic Development Investment Fund and the ION light rail transit system. As shown in Figure 41 the construction value of building permits in the downtown and immediately surrounding neighbourhoods has accumulated to $1.45 billion since 2014 to the end of 2018. As of October 2019, total year-to-date construction investment in the downtown reached an all- time annual high of $505.8 million, due in part to this being the last year for developers to receive incentives to develop in downtown neighbourhoods. Figure 42: Construction Values in Downtown Neighbourhoods $600 $505.8 $400 $265.4 $154.7 $145.4 $200 $135.4 $105.5 $104.4 $90.1 $84.0 $78.0 $58.7 $57.7 $51.9 $48.3 $41.4 $36.2 $0 millions (nominal dollars) 2004200520062007200820092010201120122013201420152016201720182019 YTD Source: City of Kitchener, Building Permits As shown in the following Figure 43, construction values have also been very strong across the City since 2014. Figure 43: Construction Values in Kitchener $1,200 $1,022 $740 $665 $800 $585 $574 $565 $505 $496 $435 $432 $417 $410 $377 $366 $340 $336 $400 dollars) $0 2004200520062007200820092010201120122013201420152016201720182019 millions (nominal YTD Source: City of Kitchener, Building Permits City of Kitchener Housing Needs Assessment (2020) 66 7 - 76 5.0Housing Supply Housing supply is a measure of the available housing options in a community. An important aspect of assessing housing supply is to compare the existing housing supply as well as recent development applications to housing need. The extent to which housing supply does not match housing need helps identify gaps in the current housing supply. This section of the assessment report examines the current housing supply and considers the future supply along the housing continuum. 5.1 Existing Housing Supply The existing housing supply is important because housing lasts for well over 60 years if well maintained. It represents the majority of the housing stock, with new housing development generally providing incremental change over time. 5.1.1 Housing Supply by Mix of Dwelling Types and Tenure There were 92,135 occupied dwellings in Kitchener in 2016. Almost half of these dwellings (48.6%) were single detached dwellings. While single detached dwellings homes are well suited for many households, particularly for families with children, they may not be the most suitable dwelling type for other households. Single detached dwellings are generally less accessible due to the presence of stairs and the need for more indoor and outdoor maintenance. Single detached homes are also, in general, the least affordable house type. As such, having a housing supply comprised predominantly of single detached homes limits options for households with lower incomes or those who would find it challenging to maintain a single detached home. Higher density forms of housing, such as apartments, are inherently more affordable as they tend to be smaller in square footage, and require less land and make efficient use infrastructure when compared to low density single and semi-detached dwellings. Figure 44: Dwelling Types Owner Renter Total % Total % Total % of all # # # Dwelling Type Dwelling Type Dwellings Single-detached 41,920 93.6% 2,870 6.4% 44,790 48.6% Semi-detached 4,230 76.6% 1,295 23.4% 5,525 6.0% Duplex 6,430 56.6% 4,940 43.4% 11,370 12.3% Row house 1,250 44.7% 1,545 55.3% 2,795 3.0% Apartment < 5 storeys 1,750 13.2% 11,500 86.8% 13,250 14.4% 5 storeys 1,605 11.2% 12,715 88.8% 14,320 15.5% Other attached dwelling 35 41.2% 50 58.8% 85 0.1% Other single-attached 57,220 62.1% 34,915 37.9% 92,135 100.0% Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 67 7 - 77 Renters tend to live in apartments, whereas homeowners tend to reside in single detached homes. This is correlated with differences in household size and household income of renters and owners. Figure 45: Dwelling Types by Tenure 74% 73% 14% Owner 11% 8% 8% 7% 4% Renter Single DetachedSemi DetachedTownhouseApartment and Other Source: Statistics Canada, 2016 Custom Tabulation The percentage of owner households occupying single and semi-detached units decreased from 82.7% in 2006 to 80.6% in 2016 as more condominium apartments and townhouses are being built. 5.1.2 Housing Supply by Market Almost 95% of households reside in market housing with 62.1% in owned units and 33.5% in rented units. 4.5% of households reside in non-market units that are subsidized. Subsidized housing includes rent geared to income, social housing, public housing, government-assisted housing, non-profit housing, rent supplements and housing allowances. Figure 46: Households by Market Subsidized Renter 4.5% 33.5%62.1% None subsidized renter Owner Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 68 7 - 78 5.1.3 Rental Supply Rental housing is divided into two categories: primary and secondary. The primary rental market consists of structures that contain at least three rental units, including both townhouse and apartment units that are not held in condominium ownership. The secondary rental market includes all rented units other than those in the primary rental market. The secondary rental market consists of self-contained units that were not built specifically as rental housing but are currently being rented out. These units include rented single-detached, semi-detached, townhouses, duplexes (second units), rented condominium units, and one or two apartments which are part of a commercial or other type of operation. Primary Market Rental Units As of October 2018, there were approximately 21,500 primary rental housing units in Kitchener as shown in the following Figure 47. As The majority of primary rental units are in apartment form. Of the 1,435 rental townhouse units, approximately half have 3 or more bedrooms. Of the 20,000 rental apartment units, just under 1,000 units have 3 or more bedrooms. Figure 47: Primary Market Rental Supply by Type and Size, 2018 Townhouse Apartment & Other Total # % # % # % Bachelor 0 0.0% 621 3.1% 621 2.9% 1 Bedroom 150 10.5% 6,579 32.8% 6,729 31.3% 2 Bedroom 522 36.4% 11,913 59.4% 12,435 57.9% 3 Bedroom + 763 53.2% 931 4.6% 1,695 7.9% + ALL 1,435 100.0% 20,044 100.0% 21,480 100.0% Source: CMHC Rental Market Survey, 2018 City of Kitchener Housing Needs Assessment (2020) 69 7 - 79 The current composition of the purpose-built rental market does not align with the current household sizes of renters. As shown in Figure 48, 58% of units are 2 bedrooms whereas only 13% of renter households have 3 people. Figure 48: Primary Rental Supply by Size Compared to Renter Household by Size Source: CMHC Rental Market Survey, 2018 and Statistics Canada, 2016 Custom Tabulation The National Occupancy Standard (NOS) defines the number of bedrooms that a household requires given its size and composition. For example, a one person household requires as a minimum a bachelor unit (zero bedrooms), a couple requires as a minimum a one bedroom unit, a couple or lone parent with one child requires as a minimum a two bedroom unit etc. Many households prefer to rent/own a unit with more bedrooms than the NOS. Households with low and moderate incomes generally do not have the financial means to afford a unit with more bedrooms than the minimum required. It is therefore important that a sufficient supply of smaller sized units exists, as well as units with 3 bedrooms for larger family households. Vacancy Rate for Primary Rental Units A vacancy rate of 3.0% is generally accepted as a healthy vacancy rate, indicating a balance between the supply of rental housing and the need for rental housing. In a tight rental market there is strong competition for rental units of all types, resulting in limited choice and high rents for units that do become available. Therefore, renter households with lower incomes are more likely to stay in units unsuitable and inadequate because they have been priced out of more suitable units. Tight rental market conditions were alleviated in 2018 as indicated by the increase in the overall vacancy rate from 1.9% in 2017 to 3.4 in 2018, as shown in the following Figure 49. Conditions became less tight due to the increase in supply with the addition of 428 units. City of Kitchener Housing Needs Assessment (2020) 70 7 - 80 Figure 49: Vacancy Rate of Primary Rental Units 1990 to 2018 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 19901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018 Vacancy RateBalanced & Healthy Supply Source: CMHC Rental Market Survey While the vacancy rate for all primary rental units combined in 2018 was 3.4% and above the 3% healthy vacancy rate, the vacancy rate for bachelor and 3+ bedroom apartment units were below 3%, indicating tighter market conditions for these size of units as shown in the Following Figure 50. Figure 50: Vacancy Rate by Apartment Unit Size, 2018 5.00% 3.90% 4.00% 3.20% 3.00% 2.50% 2.00% 1.50% 1.00% 0.00% Bachelor1 Bedroom2 Bedroom3 Bedroom + Source: CMHC Rental Market Survey City of Kitchener Housing Needs Assessment (2020) 71 7 - 81 Secondary Market Rental Units At the time of the 2016 census, there were 34,975 renter households. There were 20,703 primary market rental units in 2016. Accordingly, it is assumed that approximately 60% of the rental housing supply in Kitchener are primary rental units and 40% (14,272 units) are secondary market rentals. As shown in the following Figure 51, the ratio of primary rental units to renter households has been decreasing since 2006, indicating that a greater proportion of renter households are residing in secondary rental market than in the past. While the secondary rental market is a good source of rental units and provides a more diverse range of rental housing as some of these units are single and semi-detached dwellings, it does not have the same levels of stability as the primary rental market as it is possible for landlords to remove these units from the market. Figure 51: Estimated Change in Primary Rental and Secondary Rental Supply 40,000 0.69 35,000 0.67 30,000 0.65 25,000 0.63 20,000 0.61 15,000 0.59 10,000 0.57 5,000 00.55 2001200620112016 Renter Households 28,46028,34530,25034,975 Primary Rental Units 17,81618,92119,45520,703 Ratio of Primary Rental Units 0.630.670.640.59 to Renter Households Source: Statistics Canada Census Profile 2016, CMHC Rental Market Survey City of Kitchener Housing Needs Assessment (2020) 72 7 - 82 5.1.4 Non-Market Housing Non-market housing is housing that is provided does not provide. Usually some form of government subsidy is required to make it affordable for people with low incomes. Approximately 4,500 units of non-market housing currently exist in Kitchener and are well distributed across the city as shown in Map 6. The following Figure 52 summarizes the supply of non-market housing by unit size in Kitchener. Figure 52: Existing Non-Market Housing Units by Type and Size Below Community Housing Average Private Rent Market Rent Waterloo Region Non-Profit & Supplement Agreements* Housing Co-op Total Bachelor 1 26 20 22 69 1-Bedroom 209 439 718 609 1,975 2-Bedroom 39 180 219 677 1,115 3-Bedroom 6 60 303 784 1,153 4-Bedroom 0 0 126 47 173 5-bedroom 0 0 29 0 29 Kitchener Total 255 705 1,415 2,139 4,514 Regional Total 2,722 6,177 8,991 Source: Region of Waterloo, Housing Services *The Region has agreements with some housing providers to provide apartments that they rent at a rate below the Average Market Rent for Waterloo Region in return for capital funding provided during construction. Altogether, community housing represent approximately 4.4 percent of all occupied dwelling units in Waterloo Region and 4.9 percent in Kitchener as shown in the following Figure 53. Kitchener contains just over 50% of the community housing supply in the region. Figure 53: Share of Existing Community Housing in the Region Region Kitchener Community Housing Units 8,991 4,514 (50.2%) Households/Occupied Dwellings (2016 census) 203,830 92,217 (45.2%) Community Housing as a % of 2016 Occupied Dwellings 4.4% 4.9% Source: Region of Waterloo, Statistics Canada City of Kitchener Housing Needs Assessment (2020) 73 7 - 83 Map 6: Distribution of Non-Market Housing Locations in Kitchener Source: Region of Waterloo, 2019 City of Kitchener Housing Needs Assessment (2020) 74 7 - 84 Community Housing Waiting List As of September 30, 2019, there were 4,798 households on the region-wide community housing waiting list. Additionally, there were 209 pending applications that were under assessment for eligibility and 2,033 applications awaiting assessment. The total number of households that were seeking community housing was 7,031. Between July 1, 2019 and September 30, 2019 a total of 115 households moved into community housing. The waiting list includes identification of preferred municipality for housing. There are 3,738* households that have indicated Kitchener as a preferred location as summarized in Figure 54 below. This means over 3,000 new units of community housing are needed in Kitchener, in addition to the existing supply Figure 54: Community Housing Waiting List Applications for Kitchener by Household Type Singles & Couples Senior Families (with Dependents) Total Bachelor 3 0 0 3 1-Bedroom 1,424 815 4 2,243 2-Bedroom 78 25 275 378 3-Bedroom 19 1 453 473 4-Bedroom 2 0 360 362 5-bedroom 2 0 275 277 6-Bedroom 0 0 2 2 Total 1,528 841 1,369 3,738* Source: Region of Waterloo, Housing Services *Totals exceed the current total waitlist number as applicants may be double counted based on indicating a preference for more than one unit type. As indicated in Figure 55 below, fewer units are turning over as people stay in community housing longer and cannot find affordable housing in the private market. The turnover in community housing accommodation units across the region was 300 units per year in 2018 compared to 1000 units in 2008. Figure 55: Households on Waitlist vs Households Housed Region of Waterloo 5,000 4,000 3,000 2,000 1,000 0 20082009201020112012201320142015201620172018 Active Households on Waiting ListTotal Households housed Source: Region of Waterloo, Housing Services City of Kitchener Housing Needs Assessment (2020) 75 7 - 85 Figure 56: Community Housing Waitlist Applications and Households Housed 2008-2018 for Region of Waterloo Active Applications Number of New Applications Total Households Housed 2008 3,100 2,673 1,034 2009 3,015 2,460 871 2010 2,737 2,149 884 2011 3,280 2,282 733 2012 3,162 2,039 726 2013 3,287 1,931 649 2014 2,962 1,919 728 2015 2,680 1,620 700 2016 2,994 1,960 606 2017 4,178 2,266 481 2018 4,647 2,338 488 Source: Region of Waterloo, Housing Services Non-senior households requiring a one-bedroom unit have historically had and continue to have the longest wait times. As shown in Figure 57, the wait time for seniors housing has increased by the greatest percentage since 2011 (127%). Figure 57: Average Wait Times for Community Housing, Waterloo Region 2011-2017 Household Type 2011 2017 % increase Seniors, 1-bed 1.3 years 3 years 127% Non-senior, 1-bed 3.8 years 7.9 years 110% Non-senior, 2-3 bed 1.8 years 2.8 years 52% Non-senior, 4+ bed 2.1 years 3.5 years 68% Source: Region of Waterloo Housing Services Waterloo Region Housing The Region of Waterloo through Waterloo Region Housing directly manages 2,722 units of mainly former public housing developed by the Ontario Housing Corporation at 65 locations across the region. There are 1,415 Waterloo Region Housing units located in Kitchener. Strasburg Road (Built 1974) City of Kitchener Housing Needs Assessment (2020) 76 7 - 86 Kitchener Housing Inc. Kitchener Housing Inc. was originally sponsored by the City of Kitchener with the objectives to purchase, construct, hold, renovate, manage, provide and maintain housing for low and moderate income individuals and families in the City of Kitchener. It is part of the non-profit component of non- market housing in the city. Kitchener Housing owns and operates 764 units of apartments, townhouses at 18 locations across the city. It operates both market and rent geared to income units. Penelope Drive (Built 1993) Menno Homes MennoHomes Inc. is a non-profit charitable organization founded in 2001, with a mission to create homes for people in need of affordable housing and develop housing that is economically and environmentally sustainable and includes supportive services. MennoHomes has 105 rental housing units within Waterloo Region. These are a mix of single unit apartments for seniors, family duplexes, and multi-bedroom housing. MennoHomes has built 2 affordable projects in Kitchener: 16 three-bedroom duplexes on Village Rd 50 unit six-story apartment building for seniors with 38 one-bedroom units and 12 two- bedroom units on King Street East. MennoHomes also has a proposed project n Kitchener planned at Bridgeport and Lancaster. Village Road Built 2004 King Street East Built - 2007 City of Kitchener Housing Needs Assessment (2020) 77 7 - 87 Other Non Profit Housing Providers non-profit organizations and religious institutions have provided a range of housing supports from emergency shelter to permanent, affordable rental or ownership housing as outlined in the following list Figure 58 - List of Other Non-Profit Providers in Kitchener Non-Profit Group Location Units Better Canada Homes Greenfield Ave 50 Cypriot Homes of K-W Country Hill Dr 102 Cypriot Homes of K-W Holborn Dr 66 Eby Village Eby St S 56 Hellenic Community of K-W Greenfield Ave 91 Hislacan Homes Non Profit Overlea Dr Kitchener Alliance Community Homes Monte Carlo St 29 Kitchener Alliance Community Homes 200 Chandler Dr 30 Kitchener Alliance Community Homes Connaught St 38 Kitchener Alliance Community Homes Greenfield Ave 63 Kitchener Alliance Community Homes Westmount Rd W 33 KW MultiGroup Homes Inc. Century Hill Dr 60 Portuguese Centre of K-W Inc. Courtland Ave E 43 Shehrazad Non-Profit Oprington Dr 117 Slavonia-Croatian Non-Profit Westwood Dr 90 Village Lifestyles Non-Profit Tuerr Dr 50 Village Lifestyles Non-Profit Paulander Dr 50 Total 968 Source: Region of Waterloo Co-operative Housing Housing co-ops provide at-cost housing for their members. They are controlled by members who have a vote in decisions. There is no outside landlord. In Canada, most housing co-ops are rental projects programs targeted to people with low to moderate incomes. (Co-op Housing Federation of Canada) The following co-operative housing developments are located in Kitchener. Asgard Green Co-operative Homes Cherry Street Aventine Co-operative Homes, Homer Watsons and Bleams Rd Bread and Roses Co-operative HomesQueen St. S and Courtland Ave. Top of Form Bottom of Form Changemakers Co-op Country Hills Housing Co-operative, Doon Village Rd City of Kitchener Housing Needs Assessment (2020) 78 7 - 88 Emanuel Housing Co-operative Howe Dr New Generation Co-operative Homes Doon Village Road Sand Hills Co-operative Homes Chandler Dr Shalom Community Co-operative Elmridge Dr Simon Bolivar Housing Cooperative Inc The Country Way Sprucewoods Co-operative Housing Inc Benesfort Dr Willowside Housing Co-operative Inc., Victoria Street Indigenous Housing (K-W Urban Native Wigwam Project) The K-W Urban Native Wigwam Project (KWUNWP) is a non-profit organization that has served Indigenous people residing within Waterloo Region for over 30 rent geared-to-income housing for people and their families that have low or moderate incomes. KWUNWP provides tenant support to: assist in decreasing hardships and to lead to self-sufficiency of individuals and families. This will give Native people of this community a chance to grow and prosper, while maintaining a dignified and safe living environment for their families. KWUNWP gives their tenants the opportunity to care for a home at an affordable rate, which in turn can create an opportunity to eventually purchase their own home.https://kwunwp.weebly.com/) Figure 59 - Existing Affordable Housing for Indigenous People illustrates the current known housing by type of dwelling units geared to the indigenous population. Figure 59 - Existing Affordable Housing for Indigenous People Single Detached Semi-Detached Townhouse Apartment Units Units Units Units Total 12 16 7 6 41 Source: K-W Urban Native Wigwam Project Seniors Affordable RGI Housing Non-profit housing providers, Waterloo Region Housing and Kitchener Housing Inc. provide some dedicated housing for seniors aged 60 years and over and who have low incomes. Rent is based on a limited income up. The common type of housing form is one bedroom apartment, although some two-bedroom units for seniors are also available. The listing below is a representation of known affordable seniors housing locations and may not complete. City of Kitchener Housing Needs Assessment (2020) 79 7 - 89 Figure 60 - List of Seniors Affordable RGI Housing Project Number of Units Provider Church Street 61 Region College Street 73 Region Franklin Street 119 Region Lorraine Avenue 35 Region Overlea Drive 60 Region Sunnyside Seniors 32 Region Wilson Avenue 72 Region Subtotal 452 Cedar Court 72 NP Senioren Haus 60 NP Slavonia Village 40 NP 43 NP Thaler Retirement Manor 50 NP Villa Concordia 52 NP Subtotal 317 Carwood Green 27 KHI Linden Manor 32 KHI Subtotal 59 Source: Region of Waterloo* not complete Affordable Ownership Housing Habitat for Humanity Founded in 1988, Habitat for Humanity Waterloo Region is a charitable organization with the mission of, working toward a world where everyone has a decent place to live. Founded in 1988, Habitat for Humanity Waterloo Region is a charitable organization that over the last 30 years, has been able to help 143 families in the region build their affordable ownership home. Under the Habitat model, families provide a minimum of 500 hours of volunteer time, some of which is spent building their own home. Habitaa 45-unit townhouse project on Kehl Street in Kitchener. 5.1.5 Concurrent Disorder Supportive Housing A small number of Regional housing units (56) are dedicated to supportive housing through the Concurrent Disorders Supportive Housing Program. These units provide on-site support services for those with mental illness and addictions. There is currently a waitlist of approximately 65 people for this housing type. City of Kitchener Housing Needs Assessment (2020) 80 7 - 90 5.1.6 Housing Geared to Students In the City of Kitchener there are a number of post-secondary education establishments or campuses. This includes the Health Sciences Campus - University of Waterloo School of Pharmacy and McMaster School of Medicine along with the Wilfrid Laurier University Masters of Social Work program; both of which are located within Downtown Kitchener. The current estimate of full-time students in the downtown is approximately 750. The main Conestoga College polytechnic campus is located in the south portion of Kitchener near Highway 401. At the time of this report preparation, Conestoga College announced its plans to establish a downtown location for an International School of Business for 1,000 students. There is an expectation that this will grow to about 3,200 students within several years. Kitchener is also home to a number of private educational institutions. Kitchener is also within transit or driving distance to a number of other major post-secondary establishments in the cities of Waterloo, Cambridge and Guelph. There is an existing and growing need for housing accommodations geared to students. In 2000, the City of Kitchener established a Student Housing Task Force that resulted in a report in 2001. The study identified the need for strategies for accommodating housing geared to students in the Conestoga College area. A Lower Doon Student Housing Study was prepared in 2002. Since that time, there have not been any specific local municipal studies aimed at the student specific segment of the housing market. In 2020, the City is studying the area around the Lower Doon Conestoga College campus and what the preferred future plan is for the surrounding area which will include an investigation into needed accommodation for students as the College continues to significant grow through additional international students and other programs Although students may not be classified as permanent residents with the census information for Kitchener, the Region of Waterloo does include some measure and information regarding the estimated students. Additional information and analysis is required to further investigate not only the existing proportion but also the estimated projected growth of the student population and what the housing needs may be. 5.1.7 Housing Geared to Seniors Within the City of Kitchener there is a range of housing options for people aged 65 and over. A large segment of the housing supply is within the regular range of dwelling types provided by the private market single detached to townhouses to apartments, either in rental, freehold or condominium tenure available to everyone. There are also number of sites within the City that offer life lease units, specifically for seniors. Life lease units are often offered as part of an integrated site that includes townhouse dwellings with an apartment building and/or residential care facility. This allows for potential movement and additional level of care options across a continuum of housing options in the same location. City of Kitchener Housing Needs Assessment (2020) 81 7 - 91 Another segment of the housing supply for seniors is within a residential care facility or apartment building that offers some level of care and shared facilities (i.e. retirement home). The total number of existing beds/units for this form of housing is approximately 2,400. The known locations that are aimed at providing seniors housing that include some aspect of care or shared facilities are indicated in Map 7 below. The total number of existing beds/units for this form of housing is approximately 2,400. Map 7: Senior Care Facilities in Kitchener City of Kitchener Housing Needs Assessment (2020) 82 7 - 92 Some of the community housing provided by non-profit housing organizations is dedicated to people aged 55+ and the rent charged is geared to income, making it an affordable option. A senior in this form of housing must be able to take care of their daily needs and be generally independent as limited supports are provided. As indicated earlier the waiting list to access this housing is becoming longer and longer indicating strong demand and insufficient supply of this housing type. As seniors age they often develop health issues and independent living is not a suitable option to meet their needs. Care homes, retirement homes and assisted living are forms of housing available to seniors who require supports for daily living. Standard space is space where a senior resident receives less than 1.5 hours of care per day or is not required to pay an extra amount to receive high-level care. The following Figure 61 illustrates that a significant amount almost 90% - for rental housing with supports is at a monthly rent range of $2,500 and above. Figure 61: Seniors' Proportion (%) of Standard Spaces by Rent Range, Kitchener - Cambridge - Waterloo CMA, 2019 1%2%9% Less Than $1,500 $1,500 - $1,999 $2,000 - $2,499 $2,500 + 88% Source: CMHC Seniors' Housing Survey While the demographics of Kitchener has a fairly robust number within with younger age cohorts which will continue to grow through the next 10-20 years. There are a number of seniors housing providers and developments that could include housing suitable for seniors. Typically this form of housing occurs through market demand; however, there is a need and gap for more information and data. The increase in rental prices will have an impact on cohorts that rely on a set or declining income. It is recommended that further research and analysis is required of this housing type and need. City of Kitchener Housing Needs Assessment (2020) 83 7 - 93 5.2 Age and Condition of Housing Stock Two thirds of dwellings in Kitchener were built before 1991 and only 6.4% were built in the period from 2011 to 2016 as indicated in the following Figure 73. Figure 62: Housing Stock by Construction Period 20,000 16,040 14,725 15,000 13,210 12,650 11,785 10,080 10,000 5,885 3,995 3,855 5,000 0 1920 or 1921 to 1946 to 1961 to 1971 to 1981 to 1991 to2001 to 2011 to before19451960197019801990200020102016 Source: Statistics Canada, 2016 Custom Tabulation The majority of Housing Stock was constructed in the post-war period and nearly half is less than 35 years old. The 1970s and 2000s were the decades of greatest residential growth. Given the rapid pace of housing construction since 2016, the average age of housing stock will decrease in the coming years. The condition of the housing stock in Kitchener is good with 95% of dwellings only requiring regular maintenance or minor repairs as indicated in the following Figure 74. Figure 63 Overall Condition of Housing Stock in 2016 5% 24% Regular maintenance needed Minor repairs needed Major repairs needed 71% Source: Statistics Canada City of Kitchener Housing Needs Assessment (2020) 84 7 - 94 The following map shows a pattern of concentric outward residential growth in Kitchener. Dwellings older than 65 years predominate in the central neighbourhoods with some recent infill housing development. Housing 36-64 years olds predominates within the inner suburban neighbourhoods immediately east and west of the central Neighbourhoods. Housing that is 35 years old or newer is generally located in the suburban neighbourhoods of the City towards the edge of the urban area. Map 8: Age of Housing Stock in Kitchener City of Kitchener Housing Needs Assessment (2020) 85 7 - 95 As expected, the older the housing stock, the greater the need for major repairs as shown in the following Figure 64. However, the majority of older housing stock is in good condition with more than 85% only requiring regular maintenance or minor repair. are in very good condition, with 95% only requiring regular maintenance or minor repairs. Figure 64: Condition of Housing Stock by Construction Period 100% 95% 90% 85% 80% 75% 1920 or 1921 to 1946 to 1961 to 1971 to 1981 to 1991 to 1996 to 2001 to 2006 to 2011 to before1945196019701980199019952000200520102016 Regular maintenance or minor repairs needed Major repairs needed Source: Statistics Canada, 2016 Custom Tabulation 5.3 Housing Costs There has been an 88% increase in the average price of a house since 2008 and a 35% increase in the average market rent and most of the increase has been recent since 2016. In contrast, housing incomes have generally only increased at the rate of inflation by 18% over the same period. Figure 65: Change in Average Rent and Average House Price vs Inflation from 2008 to 2018 Source: CMHC Annual Rental Market Reports, Kitchener-Waterloo Association of Realtors, Bank of Canada City of Kitchener Housing Needs Assessment (2020) 86 7 - 96 5.3.1 Homeownership Housing prices have generally been increasing over the last 10 years at rates above inflation. Notably, they increased by an unprecedented 12.0% in 2016 and 20.3% in 2017, as shown in Figure 66 below. Figure 66: Percentage Change in Average Re-Sale House Price Year to Year in Kitchener 25.0% 20.0% 15.0% Rate of Change 10.0% Inflation 5.0% 0.0% 20082009201020112012201320142015201620172018 Source: Kitchener-Waterloo Association of Realtors 2019, House Priced based on Average MLS Sale Price As of October 2019, the average price of a home has reached almost $490,000 and would require an income of just over $138,000 to purchase with a 5% down payment and 25-year mortgage and paying no more than 30% of income on mortgage costs (mortgage interest, insurance and payment) and property taxes. Figure 67: Average Re-Sale Price of Houses and Income Required to Own, 2019 Average House Price (Oct Household Income 2019) Required Single Detached $572,314 $161,518 Semi Detached $429,320 $121,163 Townhouse $394,617 $111,369 Condo Apartment $294,231 $83,038 Total $489,862 $138,249 Source: Kitchener-Waterloo Association of Realtors 2019, House Priced based on Average MLS Sale Price (*Rolling 12 months average price as of October 2019) City of Kitchener Housing Needs Assessment (2020) 87 7 - 97 5.3.2 Primary Market Rental Rental housing is normally more affordable than ownership housing due to not requiring a down payment, property taxes, maintenance, and other costs associated with home ownership. However, rents in Kitchener have been increasing at rates above inflation and the rates of increase have been higher in recent years as shown in Figure 7968. Figure 68: Percentage Change in Average Market Rent Year to Year in Kitchener 6.0% 5.0% 4.0% Rate of Change 3.0% Inflation 2.0% 1.0% 0.0% 2008200920102011201220132014201520162017 Source: CMHC Primary Rental Market Survey Rental apartment average market rents (AMRs) in 2018 were $774 for a bachelor unit, $940 for a one-bedroom unit, $1,132 for a two-bedroom unit, and $1,300 for a three-plus bedroom unit as shown in Figure 69. Figure 69: Primary Market Rent Costs, 2018 Occupied Units Vacant Units Average Market Rent Bachelor $771 $883 $774 1 Bedroom $930 $1,185 $940 2 Bedroom $1,120 $1,398 $1,132 3 Bedroom + $1,274 $1,473 $1,300 + ALL $1,051 $1,302 $1,071 Source: CMHC Custom Run Data City of Kitchener Housing Needs Assessment (2020) 88 7 - 98 Landlords have the ability to raise the rent of vacated units. Among all bedroom types, average asking rent of vacant units were at significantly higher rents than occupied units. A higher turnover rate indicates that landlords could raise the rent of vacated units more frequently. As shown in Figure 70, in 2018 the difference between the rent of an occupied unit and asking rent of vacant unit was approximately $250. Figure 70: Rent Prices for Occupied Units and Vacant Units 2014 to 2018 $1,302 $1,500 $1,149 $1,096 $1,051 $968 $1,008 $937 $920 $907 $897 $1,000 $500 $0 20142015201620172018 Occupied UnitsVacant Units Source: CMHC Custom Run Data 5.3.3 Secondary Rental Condominium Apartments The total average market rent of rental condominium apartments in Kitchener - Cambridge Waterloo CMA in 2018 was $1,542. One-bedroom units had an average rent of $1,382, two bedroom units had rents at $1,614 and three bedrooms and more had average rent at $1,594. These are significantly higher than the average rents for units in the primary rental market in Kitchener - Cambridge Waterloo CMA. Figure 71: Rents in the Primary and Secondary Rental (Condo) Market in 2018 Primary Rental Condominium Apartment % Difference AMR AMR Bachelor $1,021 $1,382 35.4% 1 Bedroom $1,210 $1,614 33.4% 2 Bedroom $1,254 $1,594 27.1% 3 Bedroom + $1,138 $1,542 35.5% + Source: CMHC Secondary Rental Market Survey, CMHC Rental Market Report - Kitchener-Cambridge-Waterloo CMA (2018). City of Kitchener Housing Needs Assessment (2020) 89 7 - 99 6.0Housing Development Activity At the time of this report, Kitchener is experiencing some of the highest development and growth rates in its history. Kitchener is reported to be the second fastest growing community in Canada). The following section provides an overview of new residential development in Kitchener over that past twenty years. Dwelling units created by type of housing (i.e. single detached, townhouse, apartment, etc.) and by tenure (i.e. freehold, rental or condominium) are highlighted. Past development trends are part of understanding housing demand and needs within a community. An estimate of the approximate number of new residential dwelling units within approved (but unbuilt) plans of subdivision, plans in circulation, potential future subdivision supply and designated land is provided in this section. The capacity of Kitchener intensification areas to accommodate future growth based on existing zoning and infrastructure is also estimated. Most th Management Monitoring reporting. Site plan activity is also at a record high and the number of new dwelling units anticipated within approved (but unbuilt) plans, along with plans in circulation is estimated. Throughout the city, there are a number of land use amendments currently under consideration that may involve the potential to create more residential units. Also, there is a large quantity of sites that are in the development proposal stage (no active development application). As part of the housing outlook, a high level estimation is included of how much residential development is in the future The process and costs associated with development are also important factors in the delivery of new housing, and impact the affordability of housing, especially for non-profit providers. A high level outline of some of the process and cost factors is provided within this section. Figure 72 - New Housing Under Construction City of Kitchener Housing Needs Assessment (2020) 90 7 - 100 6.1 Housing Starts and Completions New development in Kitchener represents a relatively high proportion of growth within the Region of Waterloo. Over time, the number of total new housing starts is averaging close to 1500 new units per year when considering a 20-year average. The past 10-year period from 2010-2019 has more variability than the prior ten years from 2000-2009. Figure 73: Number of Housing Starts by Dwelling Type, 2000 to October 2019 2500 2000 1500 1000 500 0 SingleSemi-DetachedRowApartment Source: CMHC Starts and Completions Survey (*incomplete 2019 as only year start to October) While the number of apartment units under construction has been noticeable and fairly strong historically (early 2000s along with back through the 1980s and earlier), there is a significant increase in the total number and the proportion of apartments in the overall dwelling mix. In 2000 apartment forms of housing accounted for approximately 40% of starts, declining to under 20% over the next 10 years and then increasing to 80% in October 2019. The percent and quantity of single and semi-detached types of housing have gradually decreased. In 2000 detached forms of housing was at slightly over 40% of housing starts, increasing to 60% until 2010 and then steadily decreasing to approximately 10% by October 2019. Currently, a modest amount of the new housing supply being built is in detached housing forms. City of Kitchener Housing Needs Assessment (2020) 91 7 - 101 The percentage of housing starts by dwelling type from 2000 to October 2019 is shown in the following Figure. Currently there are more apartments than single detached houses being built. Figure 74: Percentage of Housing Starts by Dwelling Type, 2000 to October 2019 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% SingleSemi-DetachedRowApartment Source: CMHC Starts and Completions Survey The following figure illustrates the relationship of housing completions closely following housing starts indicating a robust market demand for new housing construction. The years 2014, 2017 and 2019 had high incidences of housing starts. It is anticipated that the city will see a large amount of completions very shortly given over 2,500 of starts between January to October 2019. This is the highest amount of starts occurring in the past 20 years. City of Kitchener Housing Needs Assessment (2020) 92 7 - 102 Figure 75: Housing Starts and Completions, 2000 to October 2019 3000 2500 2000 1500 1000 500 0 20002001200220032004200520062007200820092010201120122013201420152016201720182019 StartsCompletions Source: CMHC Starts and Completions Survey The number of residential units created by year of building permit issuance is shown in the following figurethe earlier figures; however it includes more detailed information. The number of residential permits was strong from 2000 through to 2008 and then slowed with the 2008 economic downturn. Since 2014 starts have history. The increase in the last several years has been primarily in the form of apartments while single detached dwelling starts over the past three years have been at an all time low. Much of the 2019 boom in apartments can be attributed to strong developer interest in securing financial incentives for residential development in Downtown Kitchener before they expired in 2019. Apartment completions should be strong over the coming years as these units come online, but starts are expected to reduce somewhat in the near term. Missing middle housing forms including townhouses, stacked townhouses, duplexes, triplexes and quadruplexes have seen recent growth as well. Duplexes (many in the form of basement apartments) have grown from an average of 17 units per year in 1997-2014 up to 122 units per year in the last four years. City of Kitchener Housing Needs Assessment (2020) 93 7 - 103 Figure 76 - Number of Residential Units Created by Type 4000 3500 3000 Apartment 2500 Cluster Townhouses Street Townhouses 2000 Quadruplexes 1500 Triplex 1000 Duplex 500 Semi-detached Single Detached 0 1997199819992000200120022003200420052006200720082009201020112012201320142015201620172018 2019 to Nov Source: City of Kitchener Building Division Compared to many cities across Canada, Kitchener has seen relatively robust rental apartment construction over the last 20 years, with rental apartments making up 18% of new units. However, this rate of new rental construction is not keeping pace with the demand for new rental housing. Renters are therefore turning to the secondary rental market, either in condominiums or freehold units. Condominium development has increased significantly since 2007 representing one quarter of housing starts over the period. The dwelling type of condominium units is changing. From 2000 to 2013, 58% of condominium units were in townhouses with the rest in apartments. Since 2013, 80% of condominium units have been in apartment form with only 20% in townhouses. The share of new freehold unit starts is decreasing alongside the decrease in single detached dwelling construction - although more freehold, street fronting townhouses are being built. City of Kitchener Housing Needs Assessment (2020) 94 7 - 104 Figure 77: Number of Housing Starts by Intended Tenure, 2000 to October 2019 2500 2000 1500 1000 500 0 RentalCondominiumFreehold Source: CMHC Starts and Completions Survey Figure 78: Percentage of Housing Starts by Intended Tenure, 2000 to October 2019 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 20002001200220032004200520062007200820092010201120122013201420152016201720182019 RentalCondominiumFreehold Source: CMHC Starts and Completions Survey City of Kitchener Housing Needs Assessment (2020) 95 7 - 105 6.2 Development Process New housing is created through a variety of planning and building processes. This ranges from plans of subdivision and land use amendments to establish residential permitted uses to a type of building permit to convert a portion of a dwelling into an additional unit. The length of time and potential number of new dwellings becomes more immediate and certain as the development moves from the land use and pre-subdivision application stage to registration of lots/blocks of land and final site plan approval stage. When preparing land for development of housing, the potential planning processes that may be encountered (depending upon the circumstances) includes Official Plan Amendment/Secondary Plan, Zoning By-law Amendment, Draft Plan of Subdivision, Draft Plan of Condominium, Part Lot Control, Consent, Minor Variance (or other section 45 Planning Act application), and/or Site Plan. Once the approvals are in place for the land, a building permit is required for construction of buildings or structures as stipulated under the Ontario Building Code Act). Typically, the length of time for the development applications types listed above various depending upon how far or close away it may be to the building permit stage. There are also a significant number of variables that could impact timing such as complexity of the site, issues, technical studies, public engagement, achievement of review authority objectives and requirements, developer/landowner motivations or financial considerations, completion of conditions, and decision maker (Council, staff, Committee of Adjustment, Local Planning Appeal Tribunal, etc.) Generally, a draft plan of subdivision from submission stage to registration takes multiple years. Official Plan Amendment and Zoning By-law Amendments can range from 6 months to multiple years. Site plans are typically a short timeframe around one month to a potential decision in principle with final approval taking several months to over a year depending upon vario variance applications are considered within one month but often have conditions that can take up to a year to fulfill. Provincial legislative changes to The Planning Act have significantly reduced the prescribed timelines for some of the above application types compared to previous years with the goal of helping to streamline development approvals to bring more housing to the market sooner. While there are a large amount of variables and considerations involved in the timing of development applications and getting to building permit, the City of Kitchener is undertaking a service review in 2019-20 of some of its development review functions with emphasis on creating further efficiencies in the site plan process. There is also the potential for converting existing buildings to residential dwelling units or to covert/add additional dwelling units with an existing residential building. This may involve processes from Official Plan/Zoning By-law Amendment to City Council to an application(s) to the Committee of Adjustment to simply just a type of building permit. City of Kitchener Housing Needs Assessment (2020) 96 7 - 106 In many instances, the provision of affordable housing is reliant upon funding and utilizing an existing parcel of land (which may or may not already have development on it) with the intent to move the housing development forward to building permit stage as quickly and efficiently as possible. Financial margins are tight for developments that provide housing less than market rent or price; and that is often pursued by non-profit housing providers. 6.3 Housing Outlook The housing needs of a growing community cannot be met without land and development opportunities to provide for new housing construction. One of the most important City roles in planning for housing is to ensure there is sufficient land available, both within Greenfield areas, and through infill and redevelopment opportunities, to accommodate the new units required to Growth Management program, including the Kitchener Growth Management Strategy, Kitchener Growth Management Plan and Annual Monitoring Report, constantly tracks development capacity and activity to ensure that the supply of available lands are not a barrier to the construction of the new homes we need. 6.3.1 Potential Land Supply / Future Capacity for Development Figure 79 breaks down the supply into two categories of unit type and the status of the units in the planning process. Figure 79: Potential Capacity and Supply of Land for Development Singles, Multiple Semis or Residential, Street Total Total People Cluster People Fronting Units People Townhouse Townhouse and Quad Units Units Registered (Vacant Land 933 2,689 544 1,101 1,477 3,790 Inventory) Draft Approved 3225 9274 3841 7778 7066 17,052 In Circulation 2,805 8,030 1,521 3,025 4,326 11,055 Intensification Areas 1,335 3,872 15,810 28,982 17,145 32,854 Other Designated Lands 5,365 7,985 415 5,195 5,780 13,180 Unplanned City Urban TBD TBD TBD TBD TBD TBD Area Lands TOTAL 13,664 31,850 22,131 46,081 35,795 77,931 Source: City of Kitchener Planning Division Of the 35,795 units in the long term housing supply, 62% are multiple residential, cluster townhouse, or quad units. These unit types tend to be smaller, less expensive and more likely to be rental housing than the 38% of units in the long term land supply that are in single detached, semi-detached and street townhouse units. Although the new unit forecast is not broken down by unit type, there is long term supply available to provide for the full range and mix of housing types. Forecasting new units by unit type would assist in planning for affordable City of Kitchener Housing Needs Assessment (2020) 97 7 - 107 housing and should be considered through the review of the Regional Official Plan and/or the review of the Kitchener Growth Management Strategy. Registered (Vacant Land Inventory) represent the number of units left within registered plans of subdivision. These are considered to be shovel ready and can be developed in a short timeframe. Draft Approved units have conditional approval, but conditions must be satisfied prior to final approval and registration, at which time these units would move into the . In Circulation units represent units where a formal application has been made for a plan of subdivision. Once the plan of subdivision has been conditionally approved by council, it moves into the Draft Approved category Intensification Areas represents areas within the built up part of the city where growth is planned to be directed, for example Downtown, around ION station stops or near major intersections. The City typically prioritises these lands in development review to ensure that can come online quickly. Other Designated Lands represents greenfield area that are slated for urban development, but where there is no active application for a plan of subdivision. These lands require fairly significant work prior to being ready for development and may be more of a mid-term portion of the supply. Unplanned City Urban Area includes lands that are require a determination of a land use identified through the Region (and City) Official Plan. These lands require the preparation of a Secondary Plan and associated comprehensive technical studies in order to help determine the land use. Following that process, they would then move to the Other Designated Lands category and with subsequent plans of subdivision to the In Circulation and other stages of the development process. These lands are not ready in the immediate or short term but are expected to develop within the planning horizon (by 2031). There is a good mix of unit types throughout the various level of planning approvals within the potential land supply for residential housing. Much of this can be brought online in the short term, and more could occur throughout the next 20 years. The amount of housing in the housing supply, in itself, is not a barrier to meeting the forecasted housing needs for Kitchener. 6.3.2 Potential Supply / Capacity Compared to Forecasted Growth The first column in the Figure below shows the existing number of units (each housing one household) and population in the city. The second shows, how many more units can be accommodated based on the current planning permissions and assumptions. These two City of Kitchener Housing Needs Assessment (2020) 98 7 - 108 columns when added together can be compared to the population and household forecasts over the next planning horizon. While a total about 128,000 households is expected, at least 135,962 units can be accommodated based on current planning permissions and there is a considerable amount more that are in the planning stages (i.e. future Secondary Plans). The capacity for additional housing units, (the rm housing supply, or the land supply) is sufficient to provide the required number of units to meet future population and household forecasts. 2 Figure 80: Existing Housing Supply and Estimated Capacity vs Forecast Source: City of Kitchener Planning Division, Region of Waterloo 6.3.3 Current Development Applications and Proposals As described in Section 6.2, a series of land use approvals may be required prior to building new units. Development applications are currently underway that would increase the number of interest in building new units. Site Plan approval is required to permit the development of most types of housing including apartments, townhouses and in mixed use buildings. It is not usually required to build single detached, semi-detached or duplex units. Currently, there are approximately 7,000 residential units either being considered for site plan approval, or that have been approved but have not yet received a building permit. These site plan applications are predominantly for apartments and mixed use buildings and represent uptake of units described in the total land supply outlined in Figure 79. A zoning by-law amendment application is required to build something different or above what is currently permitted in the zoning by-law. If approved, zoning by-law amendments would 2 Numbers are estimates based on information provided in applications. Estimates are more accurate further along in the development approval stage. *This is the updated Regional allocated forecast under review that is rounded off. City of Kitchener Housing Needs Assessment (2020) 99 7 - 109 increase the land supply shown in Figure 79. Currently there are approximately 4,500 units under review. The majority of these are for multiple dwellings. The City holds pre-submission meetings with developers prior to their submitting a zoning by- law amendment or site plan application. The potential supply in these is less certain than formal site plan or zoning by-law amendment applications, and while some will not materialize into formal applications, they are an indicator of development interest. In 2019 alone, the City received pre-submission applications for approximately 11,000 units (not including those that became formal applications). Being a mixture of site plan and zoning by-law amendment applications, these represent both an uptake of, and an increase in, the land supply in Figure 79. Factoring in the potential number of dwelling units in registered or draft approved subdivision applications (about 1,500 and 4,300 respectively) along with the subdivision applications that are in circulation (approximately 7,000 more potential dwelling units), there is a substantial amount of new development that is currently under consideration and could be achieved in the short to medium term. The culmination of total number of estimated new dwelling units within site plan, zoning by- law amendment and subdivision applications is approximately more than 24,000. Considering there are about 11,000 additional units in new proposals just in 2019, current development activity indicates a significantly strong developer interest in the construction of new units, particularity in the form of multiple dwellings. This does not include other applications such as through the Committee of Adjustment, Part Lot Control or duplexing through building permit. Considering the updated 10- and 5-year average number of new units created through building permits in Kitchener is now just over 1,700 and 2,100 respectively; there is a considerable amount of years supply potentially available. Overall, there is significant interest in developing new homes to meet the growing needs of the City, especially in the form of multiple dwellings and townhouses. However, the tenure, number of bedrooms, or the intended price of these potential new units is not well understood. City of Kitchener Housing Needs Assessment (2020) 100 7 - 110 6.4 Development Costs There are a number of costs that can be key factors in the delivery of development that includes affordable housing (for either non-profit or for-profit). This typically includes the main categorise of land, construction and fees as summarized in the following Figure: Figure 81 - General Proforma Cost Categories for Land Development LandConstructionFees Off-site worksDesign & consulting Purchase Commission On-site worksLegal Other Municipal Financing Management & marketing Taxes & Interest The cost and revenue drivers of residential building projects vary significantly depending upon the nature of the development and construction. Municipal costs include development or permit application fees and charges along with development charges. Depending upon the nature of the site and development, there could be parkland dedication requirements and a wide variation in infrastructure servicing and utility costs. Payment of development charges is often cited as one of the relatively large municipal costs per dwelling unit and as impeding affordable housing development. These payments are made at the building permit stage and include Regional, City and School Boards charge towards growth- related infrastructure and projects. The amount varies based on the type of dwelling unit (with single and semi-detached being the highest, townhouses the second highest, followed by multiples/apartments and then lodging houses as the lowest rate). In Kitchener, there are two geographic areas for development charges with the central neighbourhoods being lower rates for each of the dwelling types compared with the suburban area being higher. For example, in 2019 the City-only charge for a new apartment in the central neighbourhoods is $6,418/dwelling unit compared to a new apartment in the suburban area at $9,582. Factoring in Region and School Board charges equates to $24,280 and $27,644 respectively. Further information about the rates/costs of development charges Additional information regarding the financial impact/proforma of development, specifically within the Major Transit Station Areas of Kitchener and Waterloo Region and in the context of potential affordable housing requirements, is being conducted as a companion analysis to this assessment. That financial impact analysis, combined with this Housing Needs Assessment, will help satisfy the provincial regulatory requirements regarding the necessary background studies as part of the Inclusionary Zoning consideration process. City of Kitchener Housing Needs Assessment (2020) 101 7 - 111 6.4.1 City of Kitchener Affordable Housing Incentives applicable affordable housing project, the development application and building permit fees can be waived. This can amount to approximate savings between $1,000 to $100,000. Eligibility criteria includes that proponents must be a Not-For-Profit Corporation, a minimum of 20 percent of residential units must be set at or below 80 percent of average market rent for the regional area, and projects are located within 450 metres from transit corridors across the city. a deferral in payment of development charges from the time of building permit to the time of occupancy. This assists with financing, particularly for non-profit affordable housing projects. In the two years since inception, six eligible affordable housing development proposals have applied to the program and received the waiver of application fees and/or deferral of development charges. This included 205 affordable rental units out of approximately 244 total rental units. Of those, 31 units are built or under construction with 104 in the development review stage. The following Figure summarizes the status of incentive applications to date. Figure 82 Applications for Development Incentives in Kitchener ApplicationDwelling UnitsStatus ARH 17-1 KW Habilitation Services- 108 Sydney 22 (100% affordable) Built Fully accessible Includes: 4-storey apartment building 14 (1-bdrm) 8 (2-bdrm) ARH 18-1 Kitchener Housing Inc. - Ward 7 52 (100% affordable) Proposal Stacked townhouse building and a 4-storey apartment building and retaining existing affordable units on site. ARH 18-2 Lutheran Homes - Ward 9 52 (100% affordable) Proposal 5-storey mixed-use building. Ground floor accommodates Includes: offices and community service space. Four storeys above 30 (bachelor) provide supportive housing with independent living for 22 (1-bdrm) those who have experienced homelessness. ARH 18-3 The Working Centre - 115 Water St N 9 (100% affordable) Site Plan Additional bedrooms of interim housing, plus access to Includes: approved. harm reduction, primary care, mental health & addiction 9 (bachelor) Under supports for people who use drugs. construction. ARH 19-1 Thresholds Housing and Supports 23 (100% affordable) Zoning Bylaw 290 Sheldon Ave N and 5 residential care Application 3-storey supportive rental building for clients. units under review ARH 19-2 St. Pauls and Menno Homes 81 (52% or 42 units as Zoning Bylaw 544 Bridgeport Rd affordable) Application and Two mixed-use, 4-storey buildings in two phases with Includes: Site Plan under commercial space on main floor. 42 (1-bdrm) affordable review 27 (1-bdrm) market 12 (2-bdrm) market City of Kitchener Housing Needs Assessment (2020) 102 7 - 112 7.0Homelessness, Supportive and Transitional Housing Homelessness is a result of the lack of affordable, available housing. Because of the cost of housing and inadequate incomes, even a temporary financial or life crisis such as losing a job, the end of a relationship, death of a partner, or health emergency can result in a loss of housing and homelessness. Most people are homeless for a relatively short time before reconnecting to housing. A relatively small number of people who are homeless have chronic mental illness, substance abuse, or other disabling conditions which when not addressed can lead to long term homelessness. Chronic homelessness has increased since 2015. Supportive and transitional housing is needed to help people stay housed. A number of organizations provide support to people who are homeless including: Kitchener- Waterloo Out of the Cold (program has changed over the years), Trinity United Church, Ray of Hope Community Centre, St. Matthew's Lutheran, Bethany Evangelical Missionary Church, Working Center, YWCA. 7.1 Shelter Supply Shelter Space is provided by non-profit providers for women, men, youth and families in Kitchener as indicated on the following Figure and shown on Map 9. Figure 83: Shelters in Kitchener (2019) FAMILIES MEN WOMEN WOMEN & YOUTH CHILDREN YWCA - Mary's House of Friendship YWCA - Mary's Anselma House Lutherwood Safe Place Charles St. Men's Place Haven (12-15) Saint Monica 84 Frederick St Hostel 84 Frederick St 41 Weber St. W. House - 63 Charles St. E Maternity Only oneRoof, 242 Queen St S Source: Guide to Kitchener Waterloo A connected system of programs functions most efficiently when people are able to access the right programs at the right time, based on their needs and preferences. During increased capacity challenges, however, this often cannot happen, and people are left waiting until resources become available. This is illustrated by the demand for supportive housing (via the PATHS waiting list) and for community housing (via community housing waiting list). Due to the lack of vacancies in affordable and supportive housing, many households on the waiting lists use alternative options, such as emergency shelter and less stable housing (e.g., couch surfing, camping, more expensive rental units that require higher proportions of income to be spent on rent). City of Kitchener Housing Needs Assessment (2020) 103 7 - 113 Map 9: Emergency Shelters in Kitchener Figure 84 shows the increased use of shelter space in the region, however the number of people using the space has declined. People are generally staying longer in shelter space, but length of stay for families has declined. Chronic homelessness has increased since 2015. City of Kitchener Housing Needs Assessment (2020) 104 7 - 114 Figure 84: Housing and Homelessness Statistics, Region of Waterloo: 2015-2018 2015/ 2016 2016/ 2017 2017/ 2018 Beds nights 78,678 78,787 88,511 People who stayed 2,878 2,726 2,652 Daily bed occupancy (avg.) 215 215 242 Youth shelters occupied (avg.) 78% 56% 60% Demand Adult shelters occupied (avg.) 88% 96% 95% Men 66% 69% 71% Women 33% 31% 28% Other gender identity 0.50% 1% 0.80% Families 108 130 114 Dependents ages 0-15 220 204 186 All dependents 262 246 217 Unaccompanied youth (16-24)1 776 607 656 Adults (ages 25-64) 1,722 1,682 1,684 Older adults (ages 65+) 45 60 59 First Nations/Metis/Inuit 299 303 293 Demographic Trends Immigrants/Permanent Res. 146 108 63 Refugees 6 9 8 Refugee claimants 18 45 3 Veterans 30 27 28 First time in emergency shelter 49% 49% 47% Episodic homelessness 178 186 175 Chronic homelessness 61 67 94 (avg.) 33 days 34 days 42 days Stay Trends 40 days 35 days 29 days Source: Region of Waterloo Housing Stability Data Summary 7.2 Homelessness Prevention: Current Initiatives In 2018, Waterloo Region Housing and the Local Health Integration Network piloted a program to support Waterloo Region Housing tenants who were facing multiple challenges and were at risk of eviction. The program delivered on-site mental health and addiction support, resulting in successful eviction prevention for all 16 participants. The Region also supports housing resource centres in Cambridge and Kitchener that are drop-in sites tenant rights), support with applications for community housing, referral to other programs, and application for rental supports. Between July 1, 2019 and September 30, 2019, housing advisors at the housing resource centres supported 1,674 people. City of Kitchener Housing Needs Assessment (2020) 105 7 - 115 The housing helplines also support people to prevent housing loss and, where that is no longer possible, find appropriate alternatives to the emergency shelters. This ensures shelter beds are used as a last resort and that all other appropriate options are explored. Between July 1, 2019 and September 30, 2019, 48 per cent of people seeking shelter space were diverted to alternative housing options. Figure 85: Summary of Indicators Related to Housing Loss Prevention Indicator Timeframe Value The number of people supported by housing advisors at the Jul. 1 Sept. 30, 2019 1,674 housing resource centres The percent of people who accessed the housing helplines Jul. 1 Sept. 30, 2019 48% who were diverted from emergency shelter The number of evictions prevented for Waterloo Region Jul. 1 Sept. 30, 2019 15 Housing tenants through the 2018 pilot program Source: Region of Waterloo Nov 2019 There are a number of programs dedicated to supporting people who are experiencing homelessness to find and secure housing. Many of these programs also provide supports while participants search for housing (e.g. basic needs). The street outreach program provides mobile supports for households experiencing homelessness, including problem solving and connections to services. Between July 1, 2019 and September 30, 2019, street outreach workers supported 737 people. The emergency shelter program provides a temporary place for households experiencing homelessness. There are 245 spaces in the seven Region-funded shelters across Cambridge and Kitchener, plus overflow responses when shelters are full. Between July 1, 2019 and September 30, 2019, the emergency shelter program supported a total of 790 unique people over 21,756 bed nights (bed nights measure the total number of beds used per night across all shelters in Waterloo region). During that same time period, the average duration of episodes of emergency shelter use was -in date and ends on their date of book-out, prior to not returning for a minimum of 30 consecutive days. The Prioritized Access to Housing Supports (PATHS) process coordinates access to housing support programs for people experiencing homelessness using one waiting list (the PATHS list). As of September 30, 2019, there were 234 households on the PATHS list that were experiencing chronic homelessness. These service providers work together with households experiencing homelessness on housing plans, which include 10 steps to finding and securing housing. Generally, shelter participants begin to work on housing plans in their third week of shelter stay. City of Kitchener Housing Needs Assessment (2020) 106 7 - 116 As of October 10, 2019, 81 per cent of shelter participants who have been in the shelter for more than two weeks have an active housing plan. Figure 86: Summary of Indicators Related to Supports for People Experiencing Homelessness Indicator Timeframe Value Households supported by street outreach Jul. 1 Sept. 30, 2019 737 Unique people supported by an emergency shelters Jul. 1 Sept. 30, 2019 790 Average duration of episodes of emergency shelter use, Jul. 1 Sept. 30, 2019 45 days across all shelters Households experiencing chronic homelessness on the PATHS As of Sept. 30, 2019 234 list Emergency shelter participants who stayed in the shelter for As of Oct. 10, 2019 81% more than two weeks with an active housing plan Households obtained housing through the PATHS process Jul. 1 Sept. 30, 2019 41 Source: Region of Waterloo, Nov. 2019 7.3 Homelessness in Kitchener 2019 Survey Downtown and the Waterloo Wellbeing Survey (2018) reported public concern about homelessness and visible homelessness in the downtown. The business community in the downtown has also noted increasing homelessness. There is notable support for a safe and welcoming downtown and there have been increased requests to address the housing and support needs of people experiencing homelessness, especially in the downtown. 3 Survey The Working Centre conducted a comprehensive survey of people who are homeless/at risk of homeless and street involved in downtown Kitchener, during a three-week period in September 2019. The downtown serves as a place of community for many people who live and work in the downtown; including the people surveyed. People identified through the survey frequent the downtown as neighbours, as they visit their friends and are present in the downtown. They identify the downtown as their community, as the place they come to meet friends, and to get out of their small, often isolating housing situations. They find community and connections in the downtown. It is important to consider the results of the downtown Kitchener survey within the larger context of homelessness in the Region. It is estimated that there are 450 to 500 people across 3 The Working Centre, October 2019 City of Kitchener Housing Needs Assessment (2020) 107 7 - 117 Kitchener-Waterloo and Cambridge who are homeless. People who are homeless are from the community, have lived in the community, and are seeking shelter/housing in the community. -Law and Police to visit people who are camping (outside downtown Kitchener) to ensure they are connected and aware of community resources. This summer the group focused efforts to make sure that they know most of the people camping, and that people are connected to housing wait lists as they await potential housing options. In completing the downtown survey the following groups were consulted: Street Outreach Workers, hosted by The Working Centre Specialized Outreach Services (Concurrent mental health and addiction supports), hosted by The Working Centre Downtown Police Engagement Team (Brad Hickey and Lee Elliott), WRPS Discovery Team hosted by the BIA and operated by The Working Centre PATHS list (Prioritized Access to Housing Support), hosted by the Region, support by Lutherwood Areas of Interest in the Downtown There are a number of high interest areas in the downtown which receive extra focus/attention from Outreach teams, and Waterloo Region Police Services. These places tend to change regularly as they emerge as a focus area, draw attention of supports, and then recede as a focus area. The reality is that people are just moved on from one location to another. Number of People Surveyed - 263 People Within the relationship-based supports hosted by The Working Centre, 263 people were identified who frequent the downtown core, including King Street, Halls Lane, and streets within about a one-block radius of King Street. This does not include a number of people who come to downtown core. The survey emphasized connecting with all the people spending time in the downtown core, and providing supports to those who are increasingly finding themselves with minimal shelter options. City of Kitchener Housing Needs Assessment (2020) 108 7 - 118 Figure 87: Survey Respondents Age Sex 8% 25% < 20 years 19% Male 20-30 years Female 30+ years 73% 75% Figure 88 - Housing Status of Respondents City of Kitchener Housing Needs Assessment (2020) 109 7 - 119 Emergency Shelter The survey identified 181 people who either stayed in shelter or were unhoused. Based on bed capacity at the shelters, it is estimated that at least 89 additional people are unhoused but were not part of the survey. The number of shelter beds available in Kitchener is 134. This leaves about 136 people who do not currently have an emergency shelter option in 4 Kitchener and Waterloo. This is reflected in the fact that the House of Friendship did not have capacity to accommodate 191 different people who were looking for shelter in September 2019. Service restrictions in shelters were noted as a growing concern. People are being service restricted based on behaviours, but then they are left on the street without access to shelter. It was noted that the issues are not behavioural but rather the result of trauma and the impact of unsafe/erratic drug supply. The survey report identified the need to develop a strategy for keeping people safe and housed, in an alternative shelter system, when they can no longer live in congregate housing situations. Concurrent Disorders 154 people The Working Centre identified that psychosis related to drug use is high. Increasingly, psychoses that are drug induced and that are complicating existing mental health issues for people are being observed. The current hospital approach is often to separate psychosis as it relates to drug use, from psychosis as it relates to mental health issues. The Working Centre noted that building a strategy of treating psychosis as psychosis (or treating the symptoms of psychosis) whether they are drug related or from mental health issues, would enable responding more to the challenges as people are presenting in community. The Specialized Outreach Services (SOS) project of The Working Centre is an interdisciplinary team of Nurses, Social Workers and a Peer Addiction Worker that supports those who have both mental health and addiction challenges. The SOS team actively works with 300 people per year 154 were people included in this downtown survey. The SOS team follows people in and out of shelter, supports people into housing, follows legal/court issues, supports them in and out of emergency/hospital/psychiatric ward, police, of KDCHC). The Connectivity Table and Service Resolution Table are forums used to problem- solve when people are Service Restricted in Shelters, and when people are at risk of eviction. This is the most intensive and flexible support team available. The SOS team works with other intensive support teams include ACT and FACT teams, and with the CMHA/WRPS Impact Team. 4 This does not include Cambridge, and only includes those who tend to frequent the Kitchener downtown core. City of Kitchener Housing Needs Assessment (2020) 110 7 - 120 The Working Centre is actively working to help people to stabilize with a combination of mental health supports, long-acting anti-psychotic injections, consistent primary care, improved access to food/nutrition, and by working to help people to access housing where-ever possible. Currently, there are not good housing options for people who require intensive supports, who are often service-restricted from shelters, and who are being evicted from supportive housing units. Often motels have been used to help stabilize people to manage the effects of homelessness, substance use, and mental health issues. The Water Street house, currently in construction and to accommodate 8 people, will help to provide interim housing and healthcare options for this group of people. The Working Centre reports increasing pressure in SOS work, as they help people to be as well as they can be, held in trusting relationships. The SOS team is supporting 154 people identified in the Kitchener Downtown survey, which is 59% of the people present in the downtown. This is significant. The limited downtown core is hosting about half of the people with concurrent disorders in the community. This group of people are experiencing intense challenges, but are not connected with ongoing and stabilizing supports. The complexity of the work has grown, but the resources have not increased. Youth at least 70 people aged 30 or under are currently homeless A growing impact of drugs on young people was observed. Drug related psychosis is significantly impacting this group. 50 people are under the age of 30, and an additional 20 people are under 20 years of age. The Working Centre identified 10 more youth that they are working to build a relationship with. Most of these youth are homeless. This means that 39% of the people on the streets in downtown Kitchener are under the age of 30, facing intense mental health and addiction issues. This number continues to grow at a significant rate. OneRoof currently provides shelter for 17 youth. The Working Centre identified that more attention needs to be paid to young people who have been trapped by substance use at an early age. The Working Centre identified that strategies that include safe supply and long-acting anti-psychotics might help this group to stabilize, and that supported housing that helps youth to stabilize is needed. Three issues require attention to address homelessness: 1.The priority for now is to make sure people have shelter - increasing complaints about tenters, are occurring, however this will only be alleviated if there are viable shelter options available to people. 2.Once the shelter needs are addressed, the next issue becomes housing. Assuming conservatively that 500 people are homeless in Waterloo Region then how can the right kind of housing be built or provided to suit the variety of needs, including: Market rent affordable units City of Kitchener Housing Needs Assessment (2020) 111 7 - 121 Supportive housing units More intensive concurrent supportive housing options (not currently available, except in a small number of supportive housing units locally). 3.In response to the increasing number of people becoming homeless with more complex health and support needs, the Inner City Health Alliance, is an initiative developing a deep collaboration among agencies providing health care to those facing homelessness/substance use. This work is very positive and is strengthened by the collaborative efforts between existing partners, including: The Working Centre, House of Friendship, Ray of Hope, Centre for Family Medicine, Sanguen, Sanctuary, Kitchener Downtown Community Health Centre Partnerships are actively being built with: Canadian Mental Health Association, Grand River Hospital, St. Mary's Hospital, Thresholds, and others. The Alliance is working together in order to build a model that moves beyond episodic care based on the following values that will guide the work: No one is turned away and agencies work together to maintain shelter or housing even in extremely challenging circumstances. Walk alongside people, meeting them where they are at, letting them know, are here - Those we serve teach us how best to help. Services are designed to respond to what is meaningful and impactful to those served. Risks do not get in the way of doing what is needed and right for the person served. Risks are appropriately managed. Improve the Health System by busting barriers creatively to help people, one person at a time. Conclusions from the Survey The following conclusions were drawn from the survey results: An estimated 500 people are homeless in Waterloo Region 181 people are homeless and/or unsheltered in downtown Kitchener City of Kitchener Housing Needs Assessment (2020) 112 7 - 122 o Need for additional affordable housing and increasing need for supported housing. o Need for additional shelter space while responding to the need for additional housing. o Overflow shelter space should be available commencing annually in September 154 people have concurrent disorders o Need to develop a strategy for keeping people safe and housed, in an alternative shelter system, when they cannot live in congregate housing situations. o Need for more resources and a strategy to support people with concurrent disorders in regards to psychosis. In addition to the relationship-based supports that are currently being provided; the addition of a local Forensic Team would be helpful, along with increased capacity in FACT and ACT teams. 136 people were not accessing shelter beds 70 people are under the age of 30 o Specialized need for affordable housing and supports for youth dealing with addiction and trauma House of Friendship Shelter could not accommodate 191 different individuals in September o Need for additional shelter space and affordable housing for people who are not frequenting the downtown core People who are homeless currently use the library, City Hall, and are present on downtown streets, but are constantly moved on from where they are. o Rather than moving people on, places of welcome and bathroom facilities are needed while building more housing is addressed. City of Kitchener Housing Needs Assessment (2020) 113 7 - 123 7.4 Transitional Housing Transitional housing is a supportive but temporary accommodation meant to bridge the gap from homelessness to permanent housing by offering structure, supervision, support (for addictions and mental health, for instance), life skills, and in some cases, education and training. Transitional housing residents can overcome trauma, begin to address the issues that led to homelessness or kept them homeless, and Given the increase in visible street related homelessness and tent camps and the length of time people spend shelters in Kitchener it appears that there is a need for additional transitional housing in the city. 7.5 Supportive Housing Supportive housing is long-term housing, paired with supports (e.g., assistance with independent living, rent assistance, strategies to maintain housing, and referrals to supports (e.g., mental health, crisis, medical). As of September 30, 2019, there were 320 tenants in the supportive housing program. Of those, 253 tenants (79 per cent) had been housed for 12 months or longer. The following Figure lists the providers and units of fixed site supportive housing housing which is subsidized and for which clients receive support. Figure 89: Supportive Housing Providers in Kitchener Provider Number of Units/Beds Kaljas Homes 15 Millwood Manor 30/45 Trinity Village Studios 9 Working Centre for the Unemployed 12 House of Friendship Supportive Housing 50 YW Supportive Housing 54/75 Total 239/277 Source: Region of Waterloo 7.6 Housing for Post Incarcerated and Post Hospitalization Non-profit and serviced providers have noted that homeless people leaving jail or hospital are often in better shape and are more ready to access affordable housing, but the lack of available housing causes a downward spiral where people resort to crime, drug use and become ill again. This cycle is expensive for society and devastating for the individuals. The cycle can be broken with provision of transitional, supportive and affordable housing. City of Kitchener Housing Needs Assessment (2020) 114 7 - 124 8.0Housing Affordability Analysis The provincial definitions for affordable housing and low- and moderate-income households are outlined in Figure 90. These definitions are used to determine the threshold for affordable ownership and affordable rental housing. Affordable home ownership is considered to be all dwellings that are affordable to households in the sixth income decile or below. For Kitchener, this was $350,200 in 2018. The affordability threshold for affordable rental housing in the Region was $1,259, or the average market rent in 2018. Figure 90: Provincial Policy Statement Definitions Definition of Affordable Definition of Low Context for and Moderate Kitchener Incomes (2018) Ownership the least expensive of: Households with Housing 1.housing for which the purchase price incomes in the results in annual accommodation costs lowest 60 percent of 1. $350,200 which do not exceed 30 percent of gross the income annual household income for low and distribution for the moderate income households; or regional market 2.housing for which the purchase price is area 2. $435,000 at least 10 percent below the average purchase price of a resale unit in the regional market area Rental the least expensive of: Households with Housing 1.a unit for which the rent does not incomes in the 1. $1,390 exceed 30 percent of gross annual lowest 60 percent of household income for low and moderate the income income households; or distribution for 2.a unit for which the rent is at or below renter households 2. $1,138 the average market rent of a unit in the for the regional regional market area. market area Regional The upper or single-tier municipality, or planning Region of Market area, will normally serve as the regional market Waterloo Area area. However, where a regional market area extends significantly beyond these boundaries, then the regional market area may be based on the larger market area. Source: Provincial Policy Statement (PPS), Supplementary PPS Tables 1-4 2018 provided by Ministry of Municipal Affairs and Housing For the purposes of this study and based on the provincial definition of affordable housing, low income households refers to households with incomes in the 1st to 3rd household income deciles, moderate income households refers to households in the 4th to 6th income deciles, and high income households refers to households in the 7th to 10th income deciles. City of Kitchener Housing Needs Assessment (2020) 115 7 - 125 8.1 Home Ownership Affordability 8.1.1 Affordable Home Ownership Provincial Policy Statement Threshold The threshold for affordable home ownership was $350,200 for Kitchener in 2018 based on the Provincial Policy Statement as illustrated in Figure 91. Figure 91: House Sales from 2018: Price, Number and Type of Dwelling 800Affordable House Threshold ($350,200) 600 400 200 House Sale Price ($) 0 ApptTownSemiSingle Source: MPAC Figure 92: House Sales: Above and Below Affordable Threshold by Type of Dwelling 3500 3000 2500 2000 1500 1000 500 0 BelowAbove ApptTownSemiSingle Source: MPAC In 2018 and 2017 (not shown) the new homeownership construction market has served high income households relatively well. With 58% and 49% respectively being priced less than th $350,000, which is the maximum house price that a household with a 60 percentile income of $98,000 can afford. City of Kitchener Housing Needs Assessment (2020) 116 7 - 126 Figure 93: Absorbed New Construction Units by Price and Structure Type, 2018 300 250 ffordable to income Max affordable to low 200 Max amoderate income 150 100 50 0 <149,999750,000+ 150,000-199,999200,000-249,999250,000-299,999300,000-349,999350,000-399,999400,000-449,999450,000-499,999500,000-549,999550,000-599,999600,000-649,999650,000-699,999700,000-749,999 RowApartment and otherSingle Source: CMHC Starts and Completions Survey. Note: Price data on the semi detached dwelling sale is suppressed. The new units in 2018 that cost less than $350,000 were all row houses (31%) and condominium apartments (69%). Trends were similar in 2017. th The 30 income percentile household that represents the top end of the Low Income household bracket earns $52,900 per year and can afford an ownership unit costing $187,500. Less than 1% of the new ownership units in 2018 where priced this low. Overall the homeownership construction industry is moving towards more apartments and condominium forms that are relatively affordable to moderate income households as described in Section 6.1. Low income household needs are not served by new homeownership construction. Through the Housing and Homelessness Plan (2019), the Region set a target that 30% of new units be affordable. Although no determination has been made as to how this target will be allocated among the area municipalities, for 2017 and 2018 Kitchener would likely exceed the target on the basis of new ownership construction alone (assuming no new market rental housing meets the PPS definition of affordable). The moderate income households, especially th those thin the 6 income decile, can afford much of the new ownership housing that has been constructed in recent years. However, it is almost entirely unaffordable to those with lower incomes. A not sufficient to meet the needs of Kitchener residents - a more granular approach is required. City of Kitchener Housing Needs Assessment (2020) 117 7 - 127 8.1.2 All Household Income Deciles Adjusted for 2019 th In 2019, households with incomes in the 70 percentile or below could not afford an average priced resale home sold at $490,000 as shown in Figure 974. th Households with incomes in the 80 percentile or below could not afford an average priced single detached homes, th Households with incomes in the 70 percentile or below could not afford an average priced semi-detached, th Households with incomes in the 60 percentile or below could not afford an average priced townhouse th Households with incomes in the 40 percentile or below could not afford an average priced condo apartment. Figure 94: Average Resale House Prices Compared to Affordable House Prices based on Household Income Deciles and Dwelling Type (2019) Household Maximum Average MLS Resale Price Household Income affordable *Rolling 12 months average price as of October 2019 Income (2019 house Deficit/Surplus Percentile adjusted) price Total Single Semi Town Condo Apt $489,862 $572,314 $429,320 $394,617 $294,231 10th $25,036 $88,710 -$401,152 -$483,604 -$340,610 -$305,907 -$205,521 20th $40,020 $141,804 -$348,058 -$430,510 -$287,516 -$252,813 -$152,427 30th $53,622 $190,001 -$299,861 -$382,313 -$239,319 -$204,616 -$104,230 40th $67,938 $240,728 -$249,134 -$331,586 -$188,592 -$153,889 -$53,503 50th $83,298 $295,153 -$194,709 -$277,161 -$134,167 -$99,464 $922 60th $100,158 $354,895 -$134,967 -$217,419 -$74,425 -$39,722 $60,664 70th $119,992 $425,173 -$64,689 -$147,141 -$4,147 $30,556 $130,942 80th $146,704 $519,823 $29,961 -$52,491 $90,503 $125,206 $225,592 90th $190,097 $673,579 $183,717 $101,265 $244,259 $278,962 $379,348 Source: Statistics Canada, 2016 Custom Tabulation, Kitchener-Waterloo Association of Realtors 2019 Unless the household spends more than 30% of their income on housing costs or have a down payment greater than 5%, most units (79.1%) in Kitchener are only affordable to households with high incomes, who make up 34.9% of all households. Households with moderate incomes, who make up 31.7% of all households, can only afford 19.5% of the current supply of ownership housing. Households with low incomes, making up 33.3% of all households, can only afford 1.4% of the current supply of ownership housing. City of Kitchener Housing Needs Assessment (2020) 118 7 - 128 Figure 95: Housing Supply by Household Income Deciles 79.2% % Supply 34.9% 33.3% 31.7% % of households 19.5% 1.4% Low IncomeModerate IncomeHigh Income Source: MPAC Tax Assessment Data, Statistics Canada Custom Tabulations All but 2 of the 813 units which are affordable to households with low incomes are condominium apartments. A total of 11,556 owned units are affordable to households with moderate incomes, half of which are condominium apartments. Figure 96: Housing Supply by Dwelling Type by Household Income Deciles 50,000 40,000 30,000 Single Detached 39,975 Semi-Detached Condo Apartment 20,000 Townhouse 2,648 10,000 2,257 2,200 1,510 5,930 3,070 813 721 0 Low IncomeModerate IncomeHigh Income Source: MPAC Tax Assessment Data, Statistics Canada Custom Tabulations City of Kitchener Housing Needs Assessment (2020) 119 7 - 129 8.1.3 Median Household Income of Various Household Types and Sizes As demonstrated in Figure 97, with the median income a household could not afford to purchase an average priced housing of any type. Home ownership is even further out of reach for the following households: 1 person households; households where the primary maintainer is aboriginal, a recent immigrant, a visible minority, or, 25 years of age or under; households with a member with a disability; or lone parent households. Figure 97: Median Household Income of Various Household Types and Sizes vs Income Required to Own Average Priced Dwelling by Type $180,000 $150,000 $120,000 $90,000 $60,000 $30,000 $41,261$73,832$57,816$73,299$74,321$58,972$47,155 $0 Median Household Income of Various Household Types and Sizes Median Income all households ($76,004) Income Required to Own Single (S161,518) Income Required to Own Semi ($121,163) Income Required to Own Townhouse ($111,369) Income Required to Own Condo Aparment ($83,038) Source: Statistics Canada, 2016 Custom Tabulation, Kitchener-Waterloo Association of Realtors 2019. House Priced based on Average MLS Sale Price (*Rolling 12 months average price as of October 2019) City of Kitchener Housing Needs Assessment (2020) 120 7 - 130 8.2Rental Housing Affordability 8.2.1 Affordable Rent Provincial Policy Statement Threshold The threshold for affordable rental housing was $1,138 for Kitchener in 2018 based on the Provincial Policy Statement. The provincial policy statement ties affordability to rents being charged in the market. In times of high rent increases it is not an appropriate measure as new because they fall under the provincial threshold but in reality most people cannot afford the rents charged. Figure 98, based on the provincial policy statement thresholds, 502 (35.4%) of primary townhouse rental units were affordable and 13,688 (68.9%) of primary apartment rental units were affordable in 2018. The provincial policy statement ties affordability to rents being charged in the market. In times of high rent increases it is not an appropriate measure as new because they fall under the provincial threshold but in reality most people cannot afford the rents charged. Figure 98: Primary Rental Units above and below Affordable Rent Threshold, 2018 Units at or below affordable Units above affordable threshold Total (>$1,138) Townhouse 502 35.4% 918 64.6% 1,420 Apartment 13,688 68.9% 6,172 31.1% 19,860 Total Units 14,190 66.7% 7,090 33.3% 21,280 Source: CMHC Custom Run Data 8.2.2 Renter Household Income Deciles Adjusted for 2018 Figure 99 shows the top range of each renter household income decile and what monthly rent is affordable for each income decile assuming 30% of income is spent on rent costs. A person earning minimum wage ($14/hour) for 40 hours per week could not afford the average market th rent for a bachelor unit. Households with incomes in the in the 30 percentile cannot afford the average rent of any primary rental unit type. Renters would have to be earning incomes in the 4th renter income decile to be able to afford a bachelor unit or 1 bedroom unit. They would th have to be earning incomes within the 5 renter income decile to be able to afford the primary th market average market rent and 9 renter income decile to be able to afford the secondary market condominium average market rent. If a household was larger and required a minimum of three bedrooms, this household would have to be earning incomes in the 6th renter income decile. City of Kitchener Housing Needs Assessment (2020) 121 7 - 131 These findings demonstrate why such a large share (42%) of renter households are facing spending more than 30% of income on housing costs and facing housing affordability issues (See Section 8). These findings show a need for more affordable rental housing. Figure 99: Average Market Rents in the Primary Rental Market Compared to Affordable Rents based on Rental Household Income Deciles (2018) Average Market Rent (2018) Household Secondar Income of Bachelor 1 Bdrm 2 Bdrm 3+ Bdrm Primary y Condo Household Renters Maximum $774 $940 $1,132 $1,300 AMR AMR Income (2018 affordable Percentile adjusted) rent Deficit/Surplus 10th $14,851 $371 -$403 -$569 -$761 -$929 -$700 -$1,869 20th $22,392 $560 -$214 -$380 -$572 -$740 -$511 -$1,680 30th $30,095 $752 -$22 -$188 -$380 -$548 -$319 -$1,488 40th $37,947 $949 $175 $9 -$183 -$351 -$122 -$1,291 50th $46,208 $1,155 $381 $215 $23 -$145 $84 -$1,085 60th $55,276 $1,382 $608 $442 $250 $82 $311 -$858 70th $66,333 $1,658 $884 $718 $526 $358 $587 -$582 80th $80,834 $2,021 $1,247 $1,081 $889 $721 $950 -$219 90th $103,002 $2,575 $1,801 $1,635 $1,443 $1,275 $1,504 $335 10th $103,002+ $2,575+ $1,801+ $1,635+ $1,443+ $1,275+ $1,504+ $335+ 5 Min Wage $29,120 $728 -$46 -$212 -$404 -$572 -$343 -$1,512 Hours Required @Min Wage to Afford 43 52 62 71 59 85 Source: Statistics Canada, 2016 Custom Tabulation, PPS Housing Tables 2018, CMHC Rental Market Survey 2018 8.2.3 Average Asking Rent of Vacant Primary Rental Unit As noted in Section 5.3.2 Primary Market Rental, the cost to rent a vacant unit is significant higher than average rents of occupied units. Figure 100 shows that households with median income earnings and households with 1 minimum wage income earner with or without monthly shelter allowance from Ontario Works could not afford a bachelor unit or 1 bedroom unit. 5 Working 40 hours per week and 52 weeks per year City of Kitchener Housing Needs Assessment (2020) 122 7 - 132 Figure 100: Average Asking Rent of Vacant Primary Rental Unit vs What Households Can Afford, 2018 $1,600 Average Asking Rent by $1,400 Rental Unit Size $1,200 Median Renter Income $1,000 ($46,208) $800 Minimum Wage Earner, 1 $600 person ($29,120) $400 Minimum Wage Earner, 1 $200 $883$1,185$1,398$1,473 person ($29,120) plus $0 $390/month Ontario Works Bachelor1 bedroom2 Bedroom3+ Bedroom Source: Statistics Canada Census Profile 2016, CMHC Custom Run Data. Median Renter Income adjusted for 2018 based on 2016 Census Data, assumes 30% of income spent on rent. 8.3 Households in Core Housing Need A common industry standard measure of the need for affordable housing is to look at the number or percentage of households core housing need. CMHC defines a household as in core housing need if its housing does not meet one or more housing standards of affordability (costs are less than 30% of income), adequacy (does not require major repairs) and suitability (appropriate size) and if it would have to spend 30% or more of its income to pay the median 6 rent of alternative local market housing. Put another way, it filters out households who choose to spend more than 30% of income on housing, but could afford a different suitable, adequate unit locally. This measure is useful in identifying households living in unaffordable or unsuitable conditions due to limited means, and therefore are in precarious housing circumstances. In 2016, 12,125 households in Kitchener were in core housing need; making up 13.5% of all households and up from 11.9% of all households in 2011. Most (94.8%) of the households in core housing need were a result of the housing affordability standard. As demonstrated in this assessment poverty is increasing in the City of Kitchener. Food Bank usage has increased. The number of households receiving income supports has increased. The share of households in core housing need has increased. The waiting lists for community housing that provides rent geared to income has an increasing number of applicants. Visible homelessness has increased. Underlying these increases is the cost of housing. 6 Regardless of their circumstances, non-family households led by maintainers 15 to 29 years of age attending school full-time are considered to be in a transitional stage of life and therefore not in core housing need. City of Kitchener Housing Needs Assessment (2020) 123 7 - 133 The following figure shows that that among all owners in 2016, 5.0% (2,825 households) were in core need compared to 28.1% (9,300 households) of all renters. In 2011, 4.8% of all owners and 25.6% of all renters were in core need. Figure 101: Households in Core Housing Need by Tenure Source: Statistics Canada, 2016 Custom Tabulation Broken down by household type, almost 40% (2,100 households) of lone-parent family renter households and 36.4% (4,875 households) of one person renter households were in core housing need in 2016. On the ownership side, just over 10% (500 households) of lone-parent family owner households and 12.8% (1,300 households) of one person owner households were in core housing need in 2016. Figure 102: Households in Core Housing Need by Tenure and Household Type Rental Owner All Households Households Households # % # % # % Couple family household 1,850 16.1% 910 2.4% 2,760 5.5% Couple family household with children 1,005 19.3% 595 2.7% 1,600 5.9% Lone-parent family household 2,100 39.9% 500 10.4% 2,605 25.8% Non-family household 5,290 33.1% 1,370 11.9% 6,660 24.2% 1 person 4,875 36.4% 1,300 12.8% 6,175 6.9% Aboriginal Identity 285 29.4% 20 3.3% 305 19.3% Recent Immigrant 305 28.9% 45 13.8% 350 25.5% Visibility Minority 1,705 28.6% 585 7.5% 2,290 16.7% Household with Disability 4,615 36.9% 1,040 6.3% 5,655 19.5% Under 25 year old 600 26.0% 20 5.6% 620 23.2% Senior 2,615 42.2% 955 7.4% 3,570 32.8% All Households 9,300 28.1% 2,825 5.0% 12,125 13.5% Source: Statistics Canada, 2016 Custom Tabulation The percentage of households in core housing needs varies across the city as shown in the Map below. Generally, the prevalence of core housing need among households is greater in areas proximity to the ION corridor. City of Kitchener Housing Needs Assessment (2020) 124 7 - 134 Map 10: Percentage of all households in Core Housing Need within Census Tracts, 2016 Source: Statistics Canada, 2016 Custom Tabulation 8.3.1 Core Housing Need by Household Income Deciles Among households with low incomes in Kitchener, 42.1% (11,810 households) were in core housing need in 2016. The majority of these households (95.7%) were living in housing that did not meet the affordability standard, 8.5% did not meet the suitability standard, and 10.5% did not meet the adequacy standard. This confirms that the affordability of housing is the primary issue for households with low incomes. City of Kitchener Housing Needs Assessment (2020) 125 7 - 135 Figure 103: Households with Low Incomes in Core Need, 2016 8.5% 10.5% 95.7% 42.1% In Core Housing Need Below Affordability Below Suitability Below Adequacy StandardStandardStandard (11,810 households) Source: Statistics Canada Custom Tabulations 2016. Total proportions of all standards is greater than 100% as a household can fall below more than one standard 1.1% (315 households) were in core housing need among households with moderate incomes in 2016. 58.7% of these households lived in housing below the affordability standard, 68.3% did not meet the suitability standard and 15.9% did not meet the adequacy standard. Figure 104: Households with Moderate Incomes in Core Need, 2016 15.9% 68.3% 58.7% 1.1% Below Affordability Below Suitability Below Adequacy In Core Housing Need Standard Standard Standard (315 households) Source: Statistics Canada Custom Tabulations 2016. Total proportions of all standards is greater than 100% as a household can fall below more than one standard 8.4 Proportion of Income Spent on Housing In 2016, 25.7% (23,685 households) of all households in Kitchener were spending 30% or more of their income on housing costs. Among homeowners, 15.8% were spending 30% or more of their income on housing costs while 41.9% of renters were spending 30% or more of their income on housing costs. City of Kitchener Housing Needs Assessment (2020) 126 7 - 136 Figure 105: Households Spending 30%+ of Income on Housing by Tenure and Household Type Rental Households Owner Households All Households % of % of % of # # # Renter Owner All Couple family household 1,730 28.3% 1505 9.4% 3,235 14.6% Couple family household with 1,425 27.7% 2420 11.7% 3,850 14.9% children Lone-parent family household 2,160 45.0% 1000 25.0% 3,155 35.9% Non-family household 440 25.8% 435 9.6% 865 13.8% 1 person 7,880 54.8% 3495 33.1% 11,365 45.6% Aboriginal Identity 3,815 40.9% 3625 19.7% 7,435 26.8% Recent Immigrant 615 46.4% 125 35.7% 740 44.2% Visibility Minority 2,700 40.4% 1915 24.0% 4,620 31.5% Household with Disability 6,240 47.8% 2,710 16.1% 8,945 29.9% Under 25 year old 1450 55.8% 180 43.9% 1630 54.2% Senior 3,805 60.4% 1695 13.0% 5,520 28.6% All Households 14,640 41.9% 9045 15.8% 23,685 25.7% Source: Statistics Canada, 2016 Custom Tabulation 8.4.1 Income Spent on Housing by Household Income Deciles In 2016, 53.6% (16,440 households) of all households with low incomes in Kitchener were facing housing affordability issues (spending 30% or more of income on housing) and 28.5% (8,760 households) were facing severe housing affordability issues (spending 50% or more of income on housing). 13.4% (3,905 households) of households with moderate incomes were facing housing affordability issues and 0.7% (210 households) were facing severe housing affordability issues. Only a small proportion of households with high incomes faced housing affordability issues (1.4%). However, it should be noted that in many cases, households with high incomes would still have sufficient income left over for other basic needs even if they spend more than 30% of their income on housing costs whereas households with low incomes would not. Figure 106: Proportion of Income Spent on Housing by Tenure and Household Type of Income on Housing of Income on Housing # % # % Households with 16,440 53.6% 8,760 28.5% Low Incomes Households with 3,905 13.4% 210 0.7% Moderate Incomes Households with 465 1.4% 10 0.0% High Incomes Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 127 7 - 137 9.HOUSING GAPS The current need analysis identifies households in the community that currently lack their own housing or live in inadequate housing and cannot afford the housing they need in the local housing market without some assistance. The current need analysis identifies who in the community needs affordable housing immediately. The supply analysis determines the ability of the community to meet its current and future affordable housing needs by examining the existing housing stock and anticipated additions. By comparing the need analyses against the supply situation, insight into the gaps in the housing system in the community can be estimated. The scale and form of housing are also considered in determining gaps. Housing suitability in terms of unit size and number of bedrooms are considered as well. Historic demand for specific structure types, is balanced against emerging trends to estimate how the population would best be housed in the future. The total quantity of housing required to accommodate forecasted population has been determined by the Region for Kitchener and the Region has also established some targets to be met across the Region. This needs assessment provides further information on Kitchener specific needs and provides the basis for being more specific regarding mix of housing by structure type (e.g. single-detached, row house and apartment), by affordability and by special needs. Additional information regarding the financial impact/proforma of development, specifically within the Major Transit Station Areas of Kitchener and Waterloo Region and in the context of potential affordable housing requirements, is being conducted as a companion analysis that is separate but related to this assessment. The financial impact analysis, combined with this Housing Needs Assessment, will help satisfy the provincial regulatory requirements regarding the necessary background studies as part of the Inclusionary Zoning consideration process. This section compares information from the need/demand and supply analyses to identify the differences or gaps between need and supply. This analysis produces evidence of the existence of one or more of the following four housing outlooks for the community: 1. The current need for housing exceeds current supply; 2. The current need for housing falls short of current supply; and This section of the analysis examines the supply of affordable housing in the community. The analysis estimates of the number of occupied social housing units, vacant units, units under construction, and units to be demolished or otherwise taken out of management. City of Kitchener Housing Needs Assessment (2020) 128 7 - 138 Annual supply of affordable social housing Between 2002 and the present, the Region as the Service Manager, has through its Affordable Housing Strategy, enabled 1,594 new affordable units to be built, which is an average of 100 units per year. The majority of this new affordable housing has been constructed by the non- profit, co-operative and private sectors using funding through a variety of sources including Federal/Provincial capital funding and incentives from the Region and area municipalities. During the same period of time, the Region itself constructed 62 new units (an average of 4 units per year) in two separate developments on the Sunnyside Campus in Kitchener. Although provincially funded development grants/loans were available, the Region, for various reasons, chose not to avail themselves of this funding to build additional affordable units. within or close to the Central Transit Corridor (CTC) and/or other major transportation nodes. As such, these sites have the potential for infill or redevelopment/intensification. Replacing or adding units allows for energy efficiency improvements and opportunities to create mixed income housing communities. The Region continues to support the development of new affordable housing units. Three projects are underway to create an additional 92 new affordable units in 2020 through partnerships with private and non-profit agencies. Additionally, 58 new affordable units are scheduled to be developed in 2021/2022. There are new Federal and Provincial investment opportunities in housing, and changes in policies to create more flexibility for existing housing funding models and operations. At the same time, there is a growing need for affordable housing in Waterloo region. There are non- profit and private sector proponents that have expressed interest and capacity to develop new affordable housing (public-private partnership opportunities). However, they often face barriers around finding appropriate land, providing equity contributions or building to the scale that is currently required. Mixed-income communities are the preferred housing type, as it results in greater inclusiveness, and improves tenant engagement and quality of life. It also encourages the integration of various services in close proximity to residents so that residents and the surrounding neighbours feel a greater sense of safety and cohesion. Additional services are valuable when more complex needs such as mental health challenges and/or substance abuse are experienced in a community. City of Kitchener Housing Needs Assessment (2020) 129 7 - 139 7 Affordable Rental Housing Gap One way the demand for affordable rental housing can be determined is to look at the number of renter households that are not in subsidized housing and are living with an income that requires a certain rent range to be affordable (Waterloo Region, 2019). For example, a household with an income of $20,000 to $30,000 would require a unit with a rent between $500 and $750 (30% of income on rent) to be considered affordable. The number of non-subsidized renter households in that income range then represents the demand for rental units in that price range. Similarly, the supply of affordable units in that rent range can be determined by the number of non-subsidized renter households that have units in that rental range, no matter what their income may be. The rental gap is then the difference between the demand and supply of units. The Figure below shows the rental housing gap for households with incomes at the low end. There are 8,490 households in Waterloo region living with an income that requires a unit in the < $500 rent range and there are 2,380 units available. There are 7,195 households living with an income that requires a unit in the $500-$750 range and there are 5,290 units available. The total gap in the supply of units for households at the lower end of income is 8,015 units. Figure 107 - Rental Housing Gap 16000 14000 12000 10000 8000 Supply 6000 Demand 4000 2000 0 Less than $400 to $600 to $800 to $1,000 to $1,200 to $1,500 to $400$599$799$999$1,199$1,499$1,999 Source: Statistics Canada Census of Population 2016 7 Waterloo Region Housing Master Plan, Region of Waterloo, November 2019, p. 34 City of Kitchener Housing Needs Assessment (2020) 130 7 - 140 10.0CONCLUSIONS The results of the assessment demonstrate that housing in recent years has become increasingly unaffordable for a large share opulation. The results of the assessment demonstrate there are gaps between what housing is needed and what is available or planned. In conclusion: 1.The current housing delivery and support system is not functioning effectively. Housing needs are not being met and the existing silo approach by levels of government, non-profits, institutions and the private sector is not as effective as needed. 2.Housing in recent years has become increasingly unaffordable for an increasingly larger tion. Incomes are not keeping pace with rising costs of rental and ownership housing. Inflation increased by 18%, average rents increased by 35 % and average housing prices increased by 88% from 2008 to 2018. Most of the increase in rents and housing prices occurred between 2016 and 2018. 3.Poverty and Core Housing Need is increasing in the City of Kitchener. Food Bank use is increasing. The most significant increase has been by single people which has nearly doubled since 2014, from 25% to 49%. The number and percentage of people in Core Housing Need is increasing. In 2016, 12,125 households in Kitchener were in core housing need; making up 13.5% of all households and up from 11.9% of all households in 2011. Most (94.8%) of the households in core housing need were a result of the housing affordability standard, spending more than 30% of household income on housing. 4.Visible homelessness is increasing. People experiencing homelessness are diverse. Youth are a growing part of the homeless population. People experiencing homelessness with addiction and mental health challenges are a growing part of the homeless population. Their challenges are also increasingly more complex, requiring higher levels of support to find and sustain housing and to access treatment. Existing shelter space is not adequately funded, does not meet best practice standards, does not meet diverse needs and not enough shelter space is provided in Kitchener to meet needs. Existing transitional and supportive housing does not meet existing needs in terms of amount of housing or nature of support. City of Kitchener Housing Needs Assessment (2020) 131 7 - 141 Due to the transient nature of people who are homeless, it is challenging to estimate the amount of housing needed, however survey data and shelter use indicate between 250 to 750 supportive housing units are needed to meet existing demand. 5.Existing community housing in Kitchener is not meeting existing demand. There are approximately 4,500 units of existing community housing in Kitchener, representing approximately half of the regional supply. The turnover in community housing accommodation units across the region is 300 units per year. 3,750 households on the waiting list for community housing have requested to live in Kitchener this means over 3,000 new units of community housing are needed in Kitchener, in addition to the existing supply Waiting list information is not readily available in a form that can be analyzed to inform Kitchener specific needs. 6.Existing rental units in the primary housing market are not meeting demand. Market rental housing is becoming too expensive for an increasing number of people. Based on the number of rental households in core need, the amount of new affordable rental housing needed for people with low to moderate incomes is over 8,000 rental units. 7.Attaining affordable housing is especially challenging for: Homeless especially for people with mental health and addiction challenges Students and youth Recent immigrants Indigenous people Single parents People earning the minimum wage People with disabilities with low to moderate incomes Seniors, especially those in rental housing or requiring care. The population aged 65 years and older increased by 35% from 2006 to 2016 and is expected to almost double (increase by 94%) by 2041. 8.Housing data specific to the City of Kitchener has been challenging to collect. Additional work is needed to assess housing for: Homeless Seniors Immigrants Students Future population City of Kitchener Housing Needs Assessment (2020) A-132 7 - 142 9.Renovictions, where tenants are displaced from their homes to allow major renovations or redevelopment to proceed, are not tracked or monitored for Kitchener. Renovictions remove affordable housing and generally result in much higher rents being charged post renovation or redevelopment. 10.Housing held for investment is not tracked or monitored for Kitchener. Commodification of housing, where housing is held on speculation, for investment, or used to generate income instead of as a place to live is increasing through Airbnbs, rental condos, or other untracked rental housing types. 11.Kitchener has an experienced non-profit housing sector. The sector is overworked and underresourced. Non-profit housing and service providers have plans and ideas that would be effective in addressing housing challenges. 12.The private sector is interested in developing affordable housing and improving the development review process and planning context to allow more housing to be built. 13.More collaboration is needed between the City and the Region to identify and address housing challenges in Kitchener. City of Kitchener Housing Needs Assessment (2020) A-133 7 - 143 APPENDICIES City of Kitchener Housing Needs Assessment (2020) 1 7 - 144 Appendix 1a: Affordable Housing Definition (Provincial Policy Statement, 2014) Definition of Affordable Definition of Low and Moderate Incomes Ownership the least expensive of: Households with incomes in the Housing 3.housing for which the purchase price lowest 60 percent of the income results in annual accommodation distribution for the regional costs which do not exceed 30 percent market area of gross annual household income for low and moderate income households; or 4. housing for which the purchase price is at least 10 percent below the average purchase price of a resale unit in the regional market area Rental Housing the least expensive of: Households with incomes in the 3.a unit for which the rent does not lowest 60 percent of the income exceed 30 percent of gross annual distribution for renter household income for low and households for the regional moderate income households; or market area 4.a unit for which the rent is at or below the average market rent of a unit in the regional market area. City of Kitchener Housing Needs Assessment (2020) 2 7 - 145 Appendix 1b: Glossary of Key Terms Aboriginal Housing Non-profit housing provider with a focus on the Indigenous community (Ontario Aboriginal Housing Services). Acceptable housing Acceptable housing refers to housing that is adequate in condition, suitable in size, and affordable (CMHC). Activity Limitations - Activity limitations is a measure that identifies respondents who experienced activity limitations imposed by a condition or by long-term physical and/or mental health problem that lasted or is expected to last more than six months. The measure is not specific to a single condition and does not identify whether multiple conditions are present (Statistics Canada, 2016). Adequate Housing - Adequate housing does not require any major repairs, according to residents (Government of Canada, 2017d). Affordable housing (Rent or Own) - Affordable housing costs less than 30% of before-tax household income. Shelter costs include the following: For renters: rent and any payments for electricity, fuel, water and other municipal services; For owners: mortgage payments (principal and interest), property taxes, and any condominium fees, along with payments for electricity, fuel, water and other municipal services. (CMHC) Average Shelter Cost - Average shelter cost refers to the total monthly shelter cost paid by the household for their dwelling. Shelter costs include the following: For renters: rent and any payments for electricity, fuel, water and other municipal services; For owners: mortgage payments (principal and interest), property taxes, and any condominium fees, along with payments for electricity, fuel, water and other municipal services. (CMHC) Average Shelter-Cost-to-Income Ratio (STIR) - Average shelter-cost-to-income ratio (STIR) refers to the proportion of total before-tax household income spent on shelter. The shelter-cost-to-income ratio is calculated for each household individually by dividing its total annual shelter cost by its total annual income. The average STIR is then computed by taking the average of the individual households' STIRs (CMHC). Census metropolitan area (CMA) and Census agglomeration (CA) Area consisting of one or more neighbouring municipalities situated around a core. A census metropolitan area must have a total population of at least 100,000 of which 50,000 or more live in the core. A census agglomeration must have a core population of at least 10,000 (Statistics Canada, 2018). Census tract (CT) - Census tracts (CTs) are small, relatively stable geographic areas that usually have a population between 2,500 and 8,000 persons. They are located in census metropolitan areas and in census agglomerations that had a core population of 50,000 or more in the previous census. https://www12.statcan.gc.ca/census-recensement/2011/ref/dict/geo013-eng.cfm City of Kitchener Housing Needs Assessment (2020) 3 7 - 146 Community Housing - See Social Housing Condominium A building with several units (such as houses, townhouses or apartments), where each unit is privately owned. Condominium ownership comes with joint ownership of common elements (such as indoor parking, landscaped areas, common gym, elevators) with other owners. Shared ownership of common elements means sharing repair and maintenance associated costs (Canada & CMHC, 2009; Condominium Authority of Ontario, n.d.). Co-operative Housing Co-operative housing are democratic communities and are governed by their members. The tenants sign an occupancy agreement and make decisions on how the co-operative operates (CMHC, 2018b). Core Housing Need Status or Housing below standards A household that falls short of at least one of the standards such as adequacy, affordability and suitability comes under category of Core Housing Need Status or Housing below standards. It also include spending 30% or more of its total before-tax income to pay the median rent of alternative local acceptable housing (CMHC, n.d.). Decile splitting the data into 10% groups. Income deciles divide the population into 10 equal-sized groups according to the rank of the total income (Government of Canada, 2017a). Density Density is residents and jobs per hectare (Kitchener, 2014). Development Charges - Development charges are the costs levied on new developments to cover maintain the infrastructure needed to accommodate the new development, including roads, water and sewer infrastructure, community centres and fire protection. Development charges help cover these costs to help ensure minimal burden is put on the taxpayer (Kitchener, 2019). Emergency shelters Facilities that provide temporary, short-term accommodation for homeless individuals and families. This may or may not include other services such as food, clothing or counselling (E. and S. D. Canada, 2019). Homelessness Homelessness is the situation of someone who is without stable, permanent and appropriate housing. Along the continuum there are four main categories of homeless: unsheltered, emergency sheltered, provisionally accommodated and at risk of homelessness (CMHA, 2012). Ownership Privately owned housing, a home that is owned by a person or company (Canada & CMHC, 2009). Family household Family household refers to a household that contains at least one census family, that is, a married couple with or without children, or a couple living common-law with or without children, or a lone parent living with one or more children (lone-parent family) (Statistics Canada, 2015a). One-family household One-family household refers to a single census family (with or without other persons) that occupies a private dwelling (Statistics Canada, 2015a). Multiple-family household Multiple-family household refers to a household in which two or more census families (with or without additional persons) occupy the same private dwelling. Family City of Kitchener Housing Needs Assessment (2020) 4 7 - 147 households may also be divided based on the presence of persons not in a census family (Statistics Canada, 2015a). Non-family household Non-family household refers to either one person living alone in a private dwelling or to a group of two or more people who share a private dwelling, but who do not constitute a census family (Statistics Canada, 2015a). Low income cut-offs (LICO) The low income cut-offs are income thresholds below which a family will likely devote a larger share of its income on the necessities of food, shelter and clothing than the average family (Statistics Canada, 2015b). Market housing Market housing is the purpose built housing for profit by private firms or developers. House prices are typically dictated by market dynamics or supply and demand. Market Rent The rent of a residential unit dictated by market dynamics, location and amenities. Market rent does not include rent support or subsidies. National Occupancy Standard (NOS) The National Occupancy Standard (NOS) is comprised of the common elements of provincial/territorial occupancy standards. The NOS determines the number of bedrooms a household requires given its size and composition (CMHC, n.d.). Non-Market Housing Housing that is financed in part by the government. Includes Shelters, Transitional Housing, Supportive Housing, Social Housing and Subsidized Rental Housing (CMHC, 2018a). Percentile Percentile is exploring the distribution of number sets using various exploratory data analysis graphs (Robertson, 2004). Primary household maintainer The first person in the household identified as someone who pays the rent, or the mortgage, or the taxes, or the electricity or other services or utilities for the dwelling. When more than one member of the household contributes to the payments, the first person listed is chosen as the primary household maintainer. If no person in the household is identified as making any such payments, the first person listed is selected by default (Government of Canada, 2017c). Primary Rental Market The primary rental market, consists of units in privately initiated, purpose-built rental structures of three units or more (CMHC, 2018c). Secondary Rental Market (SRM) The dwellings not covered by the regular purpose built rental market units. Following dwelling component are considered in SRMS: Rented single-detached houses. Rented double (semi-detached) houses (i.e.. Two units of approximate equal size and under one roof that are situated either side-by-side or front-to-back). Rented freehold row/town homes. Rented duplex apartments (i.e. one-above-other). Rented accessory apartments (separate dwelling units that are located within the structure of another dwelling type). City of Kitchener Housing Needs Assessment (2020) 5 7 - 148 Rented condominiums (can be any dwelling type but are primarily apartments). One or two apartments which are part of a commercial or other type of structure. (CMHC, 2019) Seniors Care Facility a building or property developed with beds or dwelling units geared to persons aged 65+ and that also offers some level of medical care or personal assistance. Typically, there is also shared spaces, such as dining or recreational areas. These may be referred to as Residential Care Facilities, Nursing Homes or Retirement Homes. Some sites may include a continuum of care or housing that has a care facility along with other dwelling units on site, such as townhouses or apartment units that may be more independent but still part of the same overall development. Shelter-Cost-to-Income Ratio The proportion or percentage of average total income of households which is spent on shelter costs (Secretariat, 2016). Social housing Social housing units are operated by housing providers, which are not-for-profit organizations, co-ops, private landlords, or municipal corporations (Office of the Auditor General of Ontario, 2017, p. 14). Suitable housing Suitable housing has enough bedrooms for the size and make-up of resident households, according to National Occupancy Standard (NOS) requirements. Enough bedrooms based on NOS requirements means one bedroom for: each cohabiting adult couple; unattached household member 18 years of age and over; same-sex pair of children under age 18; and additional boy or girl in the family, unless there are two opposite sex children under 5 years of age, in which case they are expected to share a bedroom. A household of one individual can occupy a bachelor unit (i.e. a unit with no bedroom). (CMHC, n.d.) Supportive housing Housing that provides a physical environment that is specifically designed to be safe, secure, enabling and home-like, with support services such as social services, provision of meals, privacy and dignity (Canada, 2018). Transitional housing Short-term accommodation for those leaving emergency shelters or in need of housing during a life transition, including people with mental illness and addictions, single mothers and victims of violence (211 Ontario, n.d.). VisitAbility VisitAbility is the concept of designing and building homes with basic accessibility. VisitAble homes provide easy access on the main level for everyone. VisitAble housing offers a convenient home for residents and a welcoming environment for visitors of all ages and mobility (Canadian Centre on Disability Studies, n.d.). City of Kitchener Housing Needs Assessment (2020) 6 7 - 149 Working Poor The working poor are who struggle to make ends meet. Working poor in Canada are defined as individuals between 18 and 64 years who live independently, are not students, and earn at least $3 000 a year with an after-tax family income below the low-income threshold. The working poor Canadians are more likely to have: less stable jobs unpredictable work hours fewer benefits (e.g., drug and dental plans, disability insurance) greater health problems (P. H. A. of Canada, 2019) City of Kitchener Housing Needs Assessment (2020) 7 7 - 150 Appendix 2: Provincial Inclusionary Housing Information Requirements 89 Provincial inclusionary housing assessment information requirements and Ontario regulations require an inclusionary housing assessment to include: 1.An analysis of demographics and population in the municipality. 2.An analysis of household incomes in the municipality. 3.An analysis of housing supply by housing type currently and planned for in the municipality. 4.An analysis of housing types and sizes of units that may be needed to meet anticipated demand for affordable housing. 5.An analysis of the current average market price and the current average market rent for each housing type, taking into account location in the municipality. 6.An analysis of potential impacts on the housing market and on the financial viability of development or redevelopment in the municipality from inclusionary zoning by-laws, including requirements in the by-laws related to the matters in clauses 35.2 (2) (a), (b), (e) and (g) of the Act, accounting for: i. value of land, ii. cost of construction, iii. market price, iv. market rent, and v. housing demand and supply. 7.Provincial policies and plans and Official plan policies. 8.A written opinion on the analysis from a person independent of the municipality and who, in the opinion of the council of the municipality, is qualified to review the analysis. 10 The provincial regulations require inclusionary housing monitoring reports to include: 1.Number of affordable housing units. 2.Types of affordable housing units. 3.Location of the affordable housing units. 4.Range of household incomes for which the affordable housing units were provided. 5.Number of affordable housing units that were converted to units at market value. 6.Proceeds received by the municipality from affordable housing unit sales. 8 As per Ministry of Municipal Affairs and Housing website: http://www.mah.gov.on.ca/Page13790.aspx 9 Ontario Regulation (O. Reg) 232/18 10 See #26. City of Kitchener Housing Needs Assessment (2020) 8 7 - 151 Appendix 3: City of Kitchener Official Plan Policies References Supply Development, Redevelopment and Intensification 4.C.1.1. The City will maintain at all times the ability to accommodate residential growth for a minimum of ten years through residential intensification and redevelopment and, if necessary, lands which are designated and available for residential development. 4.C.1.2. The City will maintain at all times where new development is to occur, land with servicing capacity sufficient to provide at least a three year supply of residential units available through lands suitably zoned to facilitate residential intensification and redevelopment, and land in draft approved and registered plans. 4.C.1.3. The majority of new residential growth in the Built-Up Area will occur within Intensification Areas in accordance with Policies 3.C.1.4 through 3.C.1.12 inclusive. 4.C.1.4. The prioritization of new growth in Designated Greenfield Areas will be in accordance 4.C.1.5. The City will support and assist the Region in the creation and implementation of a regional housing statement and/or strategy. 4.C.1.6. The City will identify and encourage residential intensification and/or redevelopment, including adaptive re-use and infill opportunities, including second dwelling units, in order to respond to changing housing needs and as a cost-effective means to reduce infrastructure and servicing costs by minimizing land consumption and making better use of existing community infrastructure. 4.C.1.7. The City may require a site plan, elevation drawings, landscaping plans and any other appropriate plans and/or studies, to support and demonstrate that a proposed development or redevelopment is compatible with respect to built form, architectural design, landscaping, screening and/or buffering. These requirements are intended to address the relationship to adjacent residential development, to ensure compatibility with the existing built form and the community character of the established neighbourhood and to minimize adverse impacts. 4.C.1.8. Where a special zoning regulation(s) or minor variance(s) is/are requested, proposed or required to facilitate residential intensification or a redevelopment of lands, the overall impact of the special zoning regulation(s) or minor variance(s) will be reviewed, but not limited to the following to ensure, that: a) Any new buildings and any additions and/or modifications to existing buildings are appropriate in massing and scale and are compatible with the built form and the community character of the established neighbourhood. City of Kitchener Housing Needs Assessment (2020) 9 7 - 152 b) Where front yard setback reductions are proposed for new buildings in established neighbourhoods, the requested front yard setback should be similar to adjacent properties and supports and maintain the character of the streetscape and the neighbourhood. c) New additions and modifications to existing buildings are to be directed to the rear yard and are to be discouraged in the front yard and side yard abutting a street, except where it can be demonstrated that the addition and/or modification is compatible in scale, massing, design and character of adjacent properties and is in keeping with the character of the streetscape. d) New buildings, additions, modifications and conversions are sensitive to the exterior areas of adjacent properties and that the appropriate screening and/or buffering is provided to mitigate any adverse impacts, particularly with respect to privacy. e) The lands can function appropriately and not create unacceptable adverse impacts for adjacent properties by providing both an appropriate number of parking spaces and an appropriate landscaped/amenity area on the site f) The impact of each special zoning regulation or variance will be reviewed prior to formulating a recommendation to ensure that a deficiency in the one zoning requirement does not compromise the site in achieving objectives of compatible and appropriate site and neighbourhood design and does not create further zoning deficiencies. 4.C.1.9. Residential intensification and/or redevelopment within existing neighbourhoods will be designed to respect existing character. A high degree of sensitivity to surrounding context is important in considering compatibility. 4.C.1.10. Where appropriate, and without limiting opportunities for intensification, the City will encourage and support the ongoing maintenance and stability of existing housing stock in the city by: a) supporting the reuse and adaption of the housing stock through renovation, conversion and rehabilitation; b) supporting community access to funding programs for the rehabilitation and repair of housing. 4.C.1.11. A demolition control application will be required for any requests to remove residential dwelling units from the housing supply in accordance with the Demolition Control Policies in Section 17.E.25. City of Kitchener Housing Needs Assessment (2020) 10 7 - 153 Variety and Integration 4.C.1.12. The City favours a land use pattern which mixes and disperses a full range of housing types and styles both across the city as a whole and within neighbourhoods. 4.C.1.13. The City will work with the development industry and other community members to identify and encourage innovative housing types and designs in the city where such innovation would: a) be compatible with surrounding land uses; b) support the development of complete communities; c) provide live/work and home occupation opportunities; d) incorporate energy conservation features and the use of alternative energy systems and/or renewable energy systems; e) reduce municipal expenditures; f) protect natural heritage features; g) provide accessible and affordable housing to residents; h) conserve and/or enhance our cultural heritage resources; i) celebrate the cultural diversity of the community; j) be transit-supportive and/or transit-oriented; or, k) reflect, add and/or enhance architectural interest and character. 4.C.1.14. The City will have standards/guidelines for non-residential sites which are adjacent to residential sites, including, but not limited to screening, berming, fencing, or landscaping where appropriate and in accordance with the Urban Design Policies in Section 11. 4.C.1.15. The City will collaborate and plan to implement the affordable housing targets and other recommendations est 4.C.1.16. Where a development application proposing residential uses is submitted for a site containing two hectares or more of developable lands, the City will require, wherever appropriate, a minimum of 30 percent of new residential dwelling units to be planned in forms other than single detached and semi-detached dwellings, and may include housing forms such as street or cluster townhouses and multiple residential buildings. City of Kitchener Housing Needs Assessment (2020) 11 7 - 154 4.C.1.17. The City may require the allocation of lands for a minimum number of units of affordable housing when considering applications for new residential development to ensure that new residential developments satisfy the requirements of the Provincial Policy Statement relating to the provision of affordable housing. These lands will either be retained and developed by a developer as affordable housing or made available to a cooperative or non-profit housing group 4.C.1.18. The City supports the principle that housing assistance be provided to members of the community who have difficulty accessing safe, suitable and affordable housing. The City, in cooperation with senior levels of government, the Region, private landlords, builders and community groups will continue to utilize existing programs and seek improved and cost effective senior government assistance to provide a range of housing options that address affordable housing needs across the housing continuum. 4.C.1.19. The City will encourage and support affordable housing to locate in close proximity to public transit, commercial uses and other compatible non-residential land uses, parks and community facilities and have convenient access to community, social and health services. 4.C.1.20. The City will support and attempt to accommodate residents who may wish to adapt their housing to better suit their circumstances and needs that may change over time, provided these changes to the housing do not significantly impact the nature or community character of the surrounding residential area. 4.C.1.21. The City will support developments in appropriate locations that allow residents to age in place. 4.C.1.22. The City will encourage the provision of a range of innovative housing types and tenures such as rental housing, freehold ownership and condominium ownership including common element condominium, phased condominium and vacant land condominium, as a means of increasing housing choice and diversity. Def. No. 13 11 Second Dwelling Units, Garden Suites and Coach House Dwelling Units 4.C.1.23. The City will support the addition of a second dwelling unit within a residential unit, where desirable and appropriate unless otherwise limited by the policies of this Plan, and in -law, in order to provide another housing option to Kitchener homeowners and residents. 11 Note: As of the time of this report, the Region of Waterloo had just issued the Notice of Decision to approve an aligned with provincial changes to The Planning Act through Bill 108 that allows for up to 3 dwelling units on a lot. For Kitchener this would be within the main dwelling or with a rear yard unit. City of Kitchener Housing Needs Assessment (2020) 12 7 - 155 4.C.1.24. The City, in accordance with Planning Act and other applicable legislation, will permit stand-alone secondary dwelling units, such as a coach house dwelling or a garden suite as an ancillary use to all single detached dwellings, subject to a Zoning By-law Amendment and appropriate zoning regulations being in place. The following criteria will be considered as the basis for all Zoning By-law Amendments to permit a coach house dwelling or a garden suite. a) the use is subordinate to the main dwelling on the lot; b) the use can be integrated into its surroundings with negligible visual impact to the streetscape; c) the use is compatible in design and scale with the built form on the lot and the surrounding residential neighbourhood in terms of massing, height and visual appearance; and, d) other requirements such as servicing, parking, access, stormwater management, tree preservation, landscaping and the provision of amenity areas. Coach houses and garden suites will be subject to site plan control. Special Needs Housing 4.C.1.25. The City recognizes the need for special needs housing in our community and supports the integration of these housing types at appropriate locations, subject to any locational criteria. 4.C.1.26. Appropriately scaled special needs housing will be permitted in any land use designation which permits residential uses. 4.C.1.27. The City will encourage and support the creation and retention of special needs housing. 4.C.1.28. The City will ensure that new special needs housing or the adaptive reuse of existing buildings for special needs housing is compatible in terms of use and built form with the surrounding context. 4.C.1.29. The City will encourage and support special needs housing to locate in close proximity to public transit, commercial uses and other compatible non-residential land uses, parks and community facilities and have convenient access to community, social and health services. Residential Care Facilities 4.C.1.30. Residential care facilities will be permitted in any land use designation which permits residential uses. The size, scale, types, location and concentration of residential care facilities -law. City of Kitchener Housing Needs Assessment (2020) 13 7 - 156 4.C.1.31. The City will support comprehensively planned and developed residential care facilities that vary housing forms to allow residents to transition through life stages. Lodging Houses 4.C.1.32. The City will permit up to 3 lodgers within any dwelling unit in any land use designation permitting residential uses. 4.C.1.33. Lodging houses with between 4 and 8 residents will only be permitted in zones permitting multiple dwellings. -law will specifically regulate lodging houses and the appropriate zones in which they may be permitted subject to licensing, and safety regulations and the ability to integrate such housing forms in an acceptable and appropriate manner. 4.C.1.35. The City will encourage lodging houses to locate within walking distance of public transit and in close proximity to supportive non-residential uses and parks and recreational facilities. 4.C.1.36. The City may incorporate minimum distance separation regulations between lodging -law to prevent the undue concentration of lodging houses in specific areas of the city and to encourage this type of use throughout the city. Live/Work Units 4.C.1.37. Live/work units will be permitted in any land use designation which permits residential uses subject to the following: a) the live/work unit is appropriate in massing and scale and are compatible with the built form and the character of the neighbourhood; b) the live/work unit can function appropriately and not create unacceptable adverse impacts for adjacent properties; and, c) adequate parking is available. 4.C.1.38. Live/work units are encouraged to locate on major collector and arterial streets and roads. 4.C.1.39. A live/work unit will have a dwelling component located in the unit and any appropriate business or work purpose use will be located on the ground floor. 4.C.1.40. The location, scale, types of business or work purpose uses, size of units will be further -law. City of Kitchener Housing Needs Assessment (2020) 14 7 - 157 Home Occupations 4.C.1.41. A home occupation may be permitted as an ancillary use within a dwelling unit subject to all of the following: a) the home occupation functions as a subordinate activity to the main residential use; b) the home occupation does not generate adverse impacts, traffic or parking problems in the immediate area; c) the home occupation does not alter the principal character or external appearance of the dwelling and the property involved; d) the home occupation is at a scale and nature that is compatible with the surrounding residential neighbourhood; and, e) there is no outside storage of goods associated with the home occupation. The Zoning By-law may provide regulations for home occupations in residential dwelling units. Condominium Conversions 4.C.1.42. A development application to create a plan of condominium, which would result in the conversion of rental affordable housing to condominium ownership, may only be permitted where: a) the rental vacancy rate for comparable units for the City of Kitchener or the Kitchener Census Metropolitan area, if not available for the City of Kitchener, has been at or above 3 percent for the preceding three years; or, b) the conversion will address and result in the creation of affordable housing for affordable home ownership; or, c) the conversion will rectify existing health and safety issues through the completion of building renovations/retrofits, the cost of which would necessitate an increase in rent levels above the affordability threshold; and, d) the owner/applicant submits a detailed inspection report on the physical condition of the property by a qualified architect or engineer to the satisfaction of the City; e) tenants have the option to continue to lease their units following the approval of the conversion to condominium in accordance with the provisions of the Residential Tenancies Act; and, City of Kitchener Housing Needs Assessment (2020) 15 7 - 158 f) the owner enters into an agreement with the City which states that tenants may have first right to purchase their units or allows them to continue to rent despite the tenure of the building. Community Improvement Project Areas 17.E.9.2. Community Improvement Project Areas may be established by Council and designated by by-law, in accordance with the provisions of the Planning Act, as long as the area satisfies one or more of the following criteria: c) the area contains an inappropriate range of housing types and densities including insufficient affordable housing; Conditional Zoning Conditional Zoning is a tool that may be utilized to impose conditions on the use of lands or the erection of buildings or structures. Conditional Zoning is intended to allow a more flexible zoning process and provides the City with the authority to secure conditions in agreements that may be registered on title and enforced against both current and future owners of the lands. 17.E.14.1. When regulations have been enacted by the Province to authorize the use of Conditional Zoning By-laws in accordance with the Planning Act, the City may, in a Zoning By- law, permit a use of land or the erection, location or use of buildings or structures subject to one or more prescribed conditions on the use, erection or location. 17.E.14.2. Prior to the enactment of a Zoning By-law under the Conditional Zoning Policies of this Plan, the City may require the owner to enter into one or more legal agreements to be registered on title against the lands to which it applies, dealing with the said conditions and matters related to implementation. 12 Bonusing Provisions Bonusing is a strategy that is permitted by the Planning Act and may be used by the City to assist in the development or redevelopment of key areas in the city. It involves increasing the height and/or density of a development or redevelopment in exchange for community benefits. 7.E.17.1. Regulations may be incorporated into the Zoning By-law to permit increases in the height and/or density of a development or redevelopment where such development or 12 Note: While at the time of this report, the Bonusing policies of the Kitchener Official Plan are in effect, the passing of Bill 108 has changed Section 37 of The Planning Act thus altering the implementation of the policies. Following the provision of regulations regarding the revised section, and as it relates to preparation of Community Benefits Charges Study and By-law by a specified time period, it is expected that amendments will be required to these and other related policies of the Official Plan. City of Kitchener Housing Needs Assessment (2020) 16 7 - 159 redevelopment would provide community benefits above and beyond what would otherwise be required in accordance with the Planning Act, and provided the proposed increases would: a) help implement the vision, goals and objectives of this Plan; b) constitute good planning and help address any planning issues associated with the development or redevelopment; and, c) help implement and be in accordance with the Urban Design Policies in Section 11 and be compatible with adjacent properties and the surrounding area. 17.E.17.2. Community benefits may include: l) the provision of affordable, special needs, assisted or subsidized housing; o) the provision of dwelling units in the Urban Growth Centre (Downtown). 17.E.17.3. The use of the bonusing by-laws will be strongly encouraged to be used within the Urban Growth Centre (Downtown) and Major Transit Station Areas. The use of bonusing policies and by-laws may also be considered for use in City Nodes and Community Nodes where specific policies allowing bonusing are included in the applicable land use designation. 17.E.17.4. Bonusing by-laws will only be considered where there is sufficient infrastructure and capacity to accommodate the additional height and/ or additional density of the development or redevelopment and that the development is compatible and meets the other policies of this Plan. 17.E.17.5. An owner may transfer the increase in height or density achieved through Policy 17.E.17.2 j) from lands on which such community benefit is provided to lands having the same land use designation or to lands in the Urban Growth Centre (Downtown). 17.E.17.6. Prior to the enactment of a Zoning By-law under the Bonusing Provisions Section of this Plan, or prior to the transfer of development rights, the City will require the owner to enter into one or more legal agreements to be registered on title against the lands to which it applies, dealing with the amount of additional height and/or density and the provision and timing of community benefits. City of Kitchener Housing Needs Assessment (2020) 17 7 - 160 Appendix 4: Detailed Tables Table 1: Population: Kitchener, Region of Waterloo and Ontario; 2001-2016 Kitchener Region of Ontario Waterloo Total Population in 2001 190,399 438,515 11,410,046 Total Population in 2006 204,668 478,121 12,160,282 Total Population in 2011 219,153 507,096 12,851,821 Total Population in 2016 233,222 535,154 13,448,494 Total Population in 2018 255,070 601,220 14,300,000 2001 to 2006 Total Population Change (%) 7.5% 9.0% 6.6% 2006 to 2011 Total Population Change (%) 7.1% 6.1% 5.7% 2011 to 2016 Total Population Change (%) 6.4% 5.5% 4.6% 2016 to 2018 Total Population Change (%) 9.4% 12.3% 6.3% Source: Statistics Canada Community Profiles, Region of Waterloo, Ontario Ministry of Finance Table 2: Population: Region of Waterloo & Area Municipalities, Ontario; 2006-2016 2006 2011 2016 Number of % Number of % Number of % People Change People Change People Change Kitchener 204,668 7.5% 219,153 7.1% 233,222 6.4% Waterloo 97,475 12.6% 98,780 1.3% 104,986 6.3% Cambridge 120,371 9.1% 126,748 5.3% 129,920 2.5% Wellesley 9,789 4.5% 10,713 9.4% 11,260 5.1% North Dumfries 9,063 3.4% 9,334 3.0% 10,215 9.4% Wilmot 17,097 15.0% 19,223 12.4% 20,545 6.9% Woolwich 19,658 8.0% 23,145 17.7% 25,006 8.0% Region of Waterloo 478,121 9.0% 507,096 6.1% 535,154 5.5% Ontario 12,160,282 6.6% 12,851,821 5.7% 13,448,494 4.6% Source: Statistics Canada Community Profiles City of Kitchener Housing Needs Assessment (2020) 18 7 - 161 Table 3: Kitchener Projected Population, Households & Average Household Size, 2006-2041 Population % Growth Number of % Growth Average Households Household Size 2006 204,668 79,377 2.6 2011 219,153 6.6% 86,374 8.1% 2.5 2016 233,222 6.0% 92,217 6.3% 2.5 2021 249,450 6.5% 100,100 7.9% 2.5 2026 264,400 5.7% 107,197 6.6% 2.5 2031 279,500 5.4% 114,366 6.3% 2.4 2036 294,850 5.2% 121,246 5.7% 2.4 2041 310,000 4.9% 127,587 5.0% 2.4 Source: Statistics Canada Community Profiles, Region of Waterloo Population Forecast Data Table 4: Population Distribution by Age and Sex Age Group 2011 2016 2011 - 2016 (% Growth) Total Male Female Total Male Female Total Male Female 0 - 4 13,705 7,010 6,700 13,710 6,985 6,725 0.0% -0.4% 0.4% 5 - 9 12,320 6,270 6,055 14,020 7,165 6,855 13.8% 14.3% 13.2% 10 - 14 12,620 6,485 6,135 13,140 6,715 6,430 4.1% 3.5% 4.8% 15 - 19 14,025 7,205 6,820 13,370 6,825 6,545 -4.7% -5.3% -4.0% 20 - 24 15,955 7,980 7,970 16,125 8,270 7,855 1.1% 3.6% -1.4% 25 - 29 17,620 8,720 8,900 18,560 9,200 9,365 5.3% 5.5% 5.2% 30 - 34 16,395 8,230 8,160 17,970 8,905 9,060 9.6% 8.2% 11.0% 35 - 39 15,500 7,745 7,750 16,375 8,160 8,215 5.6% 5.4% 6.0% 40 - 44 15,850 7,935 7,915 15,565 7,690 7,875 -1.8% -3.1% -0.5% 45 - 49 17,245 8,535 8,705 15,980 7,940 8,045 -7.3% -7.0% -7.6% 50 - 54 16,065 7,900 8,160 17,230 8,515 8,710 7.3% 7.8% 6.7% 55 - 59 13,655 6,570 7,090 15,685 7,710 7,975 14.9% 17.4% 12.5% 60 - 64 11,330 5,485 5,845 13,100 6,250 6,850 15.6% 13.9% 17.2% 65 - 69 8,115 3,795 4,325 10,650 5,070 5,575 31.2% 33.6% 28.9% 70 - 74 6,260 2,955 3,305 7,585 3,485 4,100 21.2% 17.9% 24.1% 75 - 79 4,985 2,190 2,800 5,760 2,640 3,120 15.5% 20.5% 11.4% 80 - 84 3,980 1,595 2,390 4,130 1,735 2,390 3.8% 8.8% 0.0% 85 + 3,525 1,135 2,390 4,265 1,465 2,805 21.0% 29.1% 17.4% Total 219,155 107,735 111,420 233,220 114,715 118,505 6.4% 6.5% 6.4% Median 37.2 36.3 38.1 39 38 39.9 4.8% 4.7% 4.7% age Source: Statistics Canada Community Profile City of Kitchener Housing Needs Assessment (2020) 19 7 - 162 Table 5: People by Age Grouping and Projections 0-19 20-44 45-64 65+ TOTAL 2006 51,615 25.2% 78,380 38.3% 50,665 24.8% 24,005 11.7% 204,665 2011 52,670 24.0% 81,320 37.1% 58,295 26.6% 26,865 12.3% 219,150 2016 54,240 23.3% 84,595 36.3% 61,995 26.6% 32,390 13.9% 233,220 2021 57,468 23.0% 88,910 35.6% 64,057 25.7% 39,015 15.6% 249,450 2026 60,252 22.8% 92,454 35.0% 65,024 24.6% 46,670 17.7% 264,400 2031 61,656 22.1% 96,692 34.6% 66,867 23.9% 54,285 19.4% 279,500 2036 63,598 21.6% 100,245 34.0% 71,358 24.2% 59,649 20.2% 294,850 2041 65,752 21.2% 104,636 33.8% 76,735 24.8% 62,877 20.3% 310,000 Source: Statistics Canada Community Profiles, Region of Waterloo Population Forecast Data Table 6: Household Tenure: Kitchener, Waterloo Region and Ontario (2016) Owner Households Renter Households Total Households # % # % # Kitchener 57,240 62.1% 34,975 37.9% 92,215 Region of Waterloo 139,070 68.2% 64,760 31.8% 203,830 Ontario 3,601,825 69.8% 1,559,720 30.2% 5,161,545 Source: Statistics Canada Community Profile Table 7: Household Tenure, 2006 to 2016 2006 2011 2016 % Change 2006-2016 # % # % # % Owner 51,145 64.3% 56,120 65.0% 57,240 62.1% -2.3% Renter 28,345 35.7% 30,250 35.0% 34,975 37.9% 2.3% TOTAL 79,490 100.0% 86,370 100.0% 92,215 100.0% Source: Statistics Canada Community Profiles Table 8: Age of Primary Household Maintainer by Housing Tenure, 2006 to 2016 2006 2011 2016 Owner Renter Total Owner Renter Total Owner Renter Total 15 to 24 years 615 2,655 3,270 555 2,670 3,225 405 2605 3,015 25 to 34 years 7,340 7,085 14,425 8,350 7,215 15,570 7,270 9,130 16,405 35 to 44 years 11,765 6,425 18,190 11,325 5,830 17,150 11,090 6,010 17,100 45 to 54 years 12,540 4,630 17,165 14,025 5,585 19,605 13,215 6,150 19,365 55 to 64 years 8,745 3,215 11,960 10,855 3,890 14,745 12,265 4,780 17,045 65+ 10,145 4,330 14,475 11,015 5,065 16,085 12,995 6,300 19,285 Total 51,140 28,345 79,485 56,120 30,250 86,380 57,240 34,975 92,215 Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 20 7 - 163 Table 9: Household Size, 2001 to 2016 2001 2006 2011 2016 1 person 17,740 20,295 22,970 24,980 2 persons 23,175 26,090 28,550 30,555 3 persons 12,180 13,395 14,525 15,035 4 persons 12,440 12,860 13,095 13,690 5 or more persons 6,915 6,845 7,230 7,955 Total - Private households 72,445 79,485 86,375 92,215 Number of persons in private households 187,955 201,420 215,950 230,000 Average household size 2.6 2.5 2.5 2.5 Source: Statistics Canada Community Profiles Table 10: Household Size by Tenure, 2016 Owner Renter Total # % # % # 1 person 10,580 42.3% 14,420 57.7% 24,995 2 persons 19,525 63.9% 11,030 36.1% 30,560 3 persons 10,450 69.7% 4,535 30.3% 14,985 4 persons 10,875 79.4% 2,830 20.6% 13,705 5 or more persons 5,810 72.9% 2,160 27.1% 7,970 Number of persons in private households 156,400 68.0% 73600 32.0% 230,000 Average household size 2.7 2.1 2.5 Source: Statistics Canada, 2016 Custom Tabulation Table 11: Households by Household Type and Age of Primary Household Maintainer 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 + Total Couples without children 830 4,105 1,775 2,395 5,275 7,760 22,140 Couples with children 190 4,360 8,085 8,005 3,950 1,260 25,850 Lone-parents 195 1,215 2,170 2,630 1,365 1,210 8,785 Other census family households 160 840 1,420 1,620 1,295 905 6,240 One person household 915 4,395 3,125 4,080 4,640 7,785 24,940 Two+ person household, Non-family 705 1,455 510 620 490 360 4,140 All households 2,995 16,370 17,085 19,350 17,015 19,280 92,095 Source: Statistics Canada, 2016 Custom Tabulation City of Kitchener Housing Needs Assessment (2020) 21 7 - 164 Table 12: Average and Median Household Income by Tenure, 2006 to 2016 2006 2011 2016 Owner Renter Total Owner Renter Total Owner Renter Total Average Household $86,816 $41,395 $70,620 $94,006 $44,790 $76,770 $108,506 $53,943 $85,962 Income Median Household $74,945 $35,777 $58,920 $81,793 $37,502 $63,709 $93,559 $45,965 $70,774 Income Source: Statistics Canada, 2016 Custom Tabulation Table 13: Average and Median Household Income for Homeowners, 2006 to 2016 2006 2011 2016 Average Household Income $86,816 $94,006 $108,506 Median Household Income $74,945 $81,793 $93,559 Source: Statistics Canada, Census Profiles Table 14: Number of Owner Households by Income Ranges, 2006 to 2016 2006 2011 2016 # % # % # % Less Than $20,000 2,525 4.9% 2,500 4.5% 1,600 2.8% $20,000 to $39,999 6,470 12.7% 6,175 11.0% 6,440 11.3% $40,000 to $59,999 9,280 18.1% 8,825 15.7% 9,785 17.1% $60,000 to $99,999 9,895 19.3% 9,645 17.2% 10,711 18.7% $100,000 And Over 14,600 28.5% 20,095 35.8% 18,705 32.7% Total Owner Households 51,140 100.0% 56,120 100.0% 57,135 100.0% Source: Statistics Canada, Census Profiles Table 15: Average and Median Household Income for Renters, 2006 to 2016 2006 2011 2016 Average Household Income Before Taxes $41,395 $44,790 $53,943 Median Household Income Before Taxes $35,777 $37,502 $45,965 Source: Statistics Canada, Census Profiles City of Kitchener Housing Needs Assessment (2020) 22 7 - 165 Table 16: Housing Stock by Construction Period by Tenure Owned Rental Total Period of construction # % # % # % 1920 or before 2,295 4.0% 1,560 4.5% 3,855 4.2% 1921 to 1945 2,495 4.4% 1,495 4.3% 3,995 4.3% 1946 to 1960 7,520 13.1% 4,265 12.2% 11,785 12.8% 1961 to 1970 7,010 12.2% 6,195 17.7% 13,210 14.3% 1971 to 1980 8,990 15.7% 7,045 20.1% 16,040 17.4% 1981 to 1990 7,810 13.6% 4,835 13.8% 12,650 13.7% 1991 to 1995 2,635 4.6% 2,215 6.3% 4,850 5.3% 1996 to 2000 3,455 6.0% 1,775 5.1% 5,230 5.7% 2001 to 2005 5,450 9.5% 1,865 5.3% 7,315 7.9% 2006 to 2010 5,690 9.9% 1,715 4.9% 7,410 8.0% 2011 to 2016 3,890 6.8% 2,000 5.7% 5,885 6.4% TOTAL 57,240 100.0% 34,975 100.0% 92,215 100.0% Source: Statistics Canada, 2016 Custom Tabulation Table 17: Condition of Housing Stock by Construction Period Regular Minor repairs Major repairs Total - Dwelling maintenance needed needed condition needed 1920 or before 1,885 1,425 550 3,855 1921 to 1945 2,145 1,455 390 3,995 1946 to 1960 7,235 3,505 1,050 11,785 1961 to 1970 8,760 3,460 990 13,210 1971 to 1980 10,850 4,225 965 16,040 1981 to 1990 8,910 3,155 585 12,650 1991 to 1995 3,660 1,045 150 4,850 1996 to 2000 4,030 1,070 135 5,230 2001 to 2005 5,725 1,460 130 7,315 2006 to 2010 6,615 735 55 7,410 2011 to 2016 5,530 290 70 5,885 Total 65,330 21,825 5,060 92,215 Source: Statistics Canada, 2016 Custom Tabulation Table 18: Change in Average Rent and Average Resale House Price vs Inflation, 2008 to 2018 2008 2018 Growth Average Rent $793 $1,071 35.1% Average House Price $233,075 $437,424 87.7% Inflation (consumer price index) 18.0% Source: CMHC Annual Rental Market Reports, Kitchener-Waterloo Association of Realtors Custom Run Data, Bank of Canada City of Kitchener Housing Needs Assessment (2020) 23 7 - 166 Table 19: Average Market Rent By Size: Occupied Units and Vacant Units 2014 to 2018 Bachelor 1 Bedroom 2 Bedroom 3 Bedroom + Total Year Occupied Vacant Occupied Vacant Occupied Vacant Occupied Vacant Occupied Vacant Units Units Units Units Units Units Units Units Units Units 2014 $672 $717 $812 $789 $948 $960 $1,131 $1,171 $897 $907 2015 $699 $625 $830 $841 $970 $961 $1,144 $1,206 $920 $937 2016 $715 $712 $871 $901 $1,026 $1,244 $1,221 $1,300 $968 $1,149 2017 $701 $794 $890 $900 $1,066 $1,149 $1,232 $1,445 $1,008 $1,096 2018 $771 $883 $930 $1,185 $1,120 $1,398 $1,274 $1,473 $1,051 $1,302 Source: CMHC Custom Run Data Table 20: Seniors' Proportion (%) of Standard Spaces by Rent Range, Kitchener - Cambridge - Waterloo CMA 2009-2019 Less Than $1,500 $1,500 - $1,999 $2,000 - $2,499 $2,500 + 2009 3.1% 13.1% 23.5% 60.3% 2010 3.0% 13.7% 15.0% 68.4% 2011 1.9% 9.3% 15.5% 73.2% 2012 2.4% 9.3% 16.3% 72.0% 2013 0.1% 8.6% 14.1% 77.1% 2014 1.2% 9.3% 7.7% 81.9% 2015 0.2% 5.4% 5.8% 88.6% 2016 0.3% 5.6% 5.2% 89.0% 2017 0.2% 6.5% 4.8% 88.5% 2018 0.3% 7.4% 5.8% 86.5% 2019 0.9% 2.2% 8.7% 88.2% Source: CMHC Seniors' Housing Survey City of Kitchener Housing Needs Assessment (2020) 24 7 - 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