A-Z List | Accessible Info | Careers | Contact Us

 
Images from Peel Region

Housing Affordability Thresholds

Housing affordability thresholds are required to measure and monitor new and affordable housing unit targets in the Regional Official Plan (ROP), to ensure an adequate supply is being produced to meet current and future housing demands.

The Province requires upper tier municipalities to establish and implement minimum affordable housing targets as per the Provincial Policy Statement (PPS) and various policies in the Growth Plan for the Greater Golden Horseshoe, 2006. In 2010, Peel’s Housing Strategy determined annual new housing unit targets.

These are identified as Table 4 in the ROP:

Table 4 - Annual Minimum New Housing Unit Targets in Peel

 

Subsidised Housing Affordable
Rental
Market Rental &
Affordable Ownership
Market
Ownership

Peel

17%

3%

35%

45%


In order to measure whether these new housing unit targets are being met, upper affordable housing price thresholds using the PPS definition of affordable:

Affordable ownership is the least expensive of the following two calculations:

  1. Income Based: Housing for which the purchase price results in annual accommodation costs which do not exceed 30% of gross annual household income for low and moderate income households (low and moderate income households are those with incomes in the lowest 60% of the income distribution for the regional market area); or

  2. Market Based: Housing for which the purchase price is at least 10% below the average purchase price of a resale unit in the regional market area.

Affordable rental is the least expensive of the following two calculations:

  1. Income Based: A unit for which the rent does not exceed 30% of gross annual household income for low and moderate income rental households (low and moderate income households are those with incomes in the lowest 60% of the income distribution for renter households in the regional market area); or

  2. Market Based: A unit for which the rent is at or below the average market rent of a unit in the regional market area.

Affordable Housing

Based on the results of the analysis conducted using the PPS definitions, the following affordable housing threshold results provide the upper limits of what is considered affordable for ownership and rental housing from 2011 to 2015:

 
OWNERSHIP
RENTAL
Year Income
Calculation
Market
Calculation
Income
Calculation
Market
Calculation
2015
$398,012
$473,738

$1,458

$1,175
2014
$383,975
$436,249
$1,435
$1,174
2013
$367,872
$413,544
$1,414
$1,139
2012
$361,935
$396,187
$1,397
$1,114
2011
$354,990
$376,622
$1,386
$1,084

(Sources: 2011 National Household Survey; Bank of Canada; Peel’s Property Tax Rates; Canada Mortgage and Housing Corporation; Toronto Real Estate Board)

The lowest value of each calculation is used as the affordable housing threshold. Therefore, in order for new ownership housing to be considered affordable in 2015, it must be below $398,012. In order for a new rental housing unit to be considered affordable, it must be below $1,175. This represents the Region of Peel’s 2015 affordability thresholds using the best data currently available.

Please send comments and questions to:

Peel Planning
Region of Peel
Policy Planning, Integrated Planning Division
10 Peel Centre Dr., Suite A, 6th Flr.
Brampton, ON L6T 4B9