Laserfiche WebLink
Date:January 24, 2020 <br />To: <br />Council and Corporate Leadership Team <br />From: <br />Justin Readman, General Manager, Development Services <br />cc: <br />Jeff Bunn, Deputy City Clerk <br />Subject:DSD-20-006Affordable Housing Strategy Phase 2: Housing Needs Assessment <br />Regarding Item #7 from the Community & Infrastructure Services Committee recommendation, <br />we ask Council to approve the following revised recommendation: <br />“THAT Council receive report DSD-20-006 (Affordable Housing Strategy Phase2: Housing <br />Needs Assessment, AS AMENDED, and direct staff to proceed to Phase 3: Issues and <br />Options using the Needs Assessment as part of the basis for stakeholder engagement.” <br />Updated information has recently been received from CMHC, KW Realty Board and our year <br />endthat necessitates revisions to the Housing Needs Assessment. Staff have made the <br />changes and posted a revised Needs Assessment.Hard copies will be made available to <br />members of Council.Changes (in bold) include: <br />1.RevisedKey Finding/Conclusion2–Housing in recent years has become increasingly <br />unaffordable for an increasingly larger share of Kitchener’s population. Incomes are not <br />keeping pace with rising costs of rental and ownership housing. Inflation increased by 18%, <br />average rents have increased by 41%and average housing prices increased by 104% <br />during the period 2009to 2019.Most of the increase in rents and housing prices occurred <br />from2016 to2019. <br />2.RevisedKey Finding/Conclusion6–Existing rental units in the primary market are not <br />meeting demand. Average rental vacancy rates are 2.2%, despite the additionof 400 <br />new rental units in 2019.Market rental housing is becoming too expensive for an <br />increasing number of people. Based on the number of rental households in core need <br />paying more than 30% of income on housing costs,more than 9,300 new affordable <br />rental housing units are needed for people with householdincomes under $63,000in <br />Kitchener. (A new chart is includedto provide further details on rental housing affordability) <br />3.RevisedFigure 67: Average Re-sale Price of Houses and Income Required to Own – <br />Updated to include information as of year end. The report previously noted information as <br />at the end of Oct 2019. At 2019 year end,average housing prices had increased between <br />$6,000 to $10,000 depending on housing form from the end of October to the end of <br />December.The higher incomes required to afford the increased prices have been included <br />in the revised figure. <br />4.RevisedFigure 73: Number of Housing Starts–The 2019 year end total of housing starts <br />is 3,500 units.(The report previously noted 1,500 units as at theend of October 2019) <br />5.Edits and page renumberinghave been made. <br />