The housing continuum is made up of housing options that includes non-market and market housing. The degree of affordability is determined by the relationship between the cost of the housing option and the household income.
The City of Calgary, working with other levels of government, non-profit and private sectors organizations, communities and citizens, has chosen to focus its resources and efforts in the middle of the housing continuum – particularly on affordable and entry-level housing in both the rental and home ownership markets.
For housing to be affordable, the Canada Mortgage and Housing Corporation
states that “a household should not spend more than 30 percent of gross income on rental shelter costs. And no more than 32 percent of gross household income should be spent on home ownership”, which includes “payments for mortgage principal and interest; and property taxes; and payments for utilities (water, fuel, and electricity); as well as condominium fees, where the dwelling is a condominium.”
Land Use policies that promote a range of housing affordability, encourage housing that can meet a broad range of household needs.
Entry-level housing includes rental and homeownership options generally provided by the market, at or below average market rents and median home sale prices (also falling within the broad definition of “housing affordability”).
Within this broader spectrum of affordability, affordable housing specifically relates to non-market rental and non-market homeownership options. The City sees affordable housing as adequately suiting the needs of low and moderate income households at costs below those generally found in the Calgary market.