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How much is too much?

The Town of Cochrane needs to start looking into ways it can improve upon the dire rental situation in this community.

The Town of Cochrane needs to start looking into ways it can improve upon the dire rental situation in this community.

Affordable rentals in Cochrane are few and far between, and for many who live (or would like to live) in this community, unreasonable prices are surely a deterrent.

Taking a quick peek at the rental market currently for Cochrane, one would see 31 available places for rent.

Not bad, eh? Well, let’s look deeper at what’s available.

The average monthly rental in Cochrane is $1,705. Of the 31 available, 22 are $1,500 or more. Of those remaining, all but three are condos or apartments…one being a small, two-bedroom house, another is the top floor of a house and the final is shared accommodations, so essentially, intended for no more than one person.

It’s extremely difficult for people to get into an affordable rental in Cochrane. If you’re single, it’s next to impossible, unless you can find others to live with and share the cost…something many homeowners and realtors managing those properties are seldom thrilled with.

For couples or married couples it can be a bit easier if there is a dual income pool to work from. But, if that family is single-income, which often happens when children come into the picture and one parent has to stay home to look after their new addition (day care costs and space in Cochrane is another incredibly lacking service, which also needs to be addressed ASAP) it can get pretty dicey.

Using the average rental price in Cochrane, paying $1,705 a month means forking out $20,460 a year in rental costs. Add on approximately $160 for utilities each month and that brings a renter to $22,380 to put a roof over their heads for the year.

For someone making $40,000 a year, they would have to concede 72 per cent of their take-home pay toward rent and utilities.

Even if a couple each made $40,000 a year (annual household income of $80,000), each would be providing 36 per cent of their income toward rent. Most financial advisors would agree that no more than 30 per cent of one’s income should be directed toward rent.

So why not just take the plunge and buy a house?

Well, according to the Cochrane Housing Needs Assessment, done in 2009 by the Cochrane Society for Housing Options (CSHO), it was determined that a household with a five per cent down payment would have to earn a minimum annual income of $101,000 to purchase an average-priced home in Cochrane…and that was five years ago.

The average cost of a house in Cochrane is currently in the neighbourhood of $470,000.

Are sky-high rental costs hindering families from being able to save that five per cent down payment for the purchase of a home? Five per cent of $470,000 is $23,500. Does the Cochrane housing market, or Alberta’s for that matter, offer a realistic opportunity for middle-income families to purchase a home? Can a family raising one or more children realistically save and afford to buy a home in Cochrane when such a large percentage of their income is directed toward rental fees?

“What about affordable housing options from the CSHO?” some may ask.

Affordable housing is geared toward very low incomes (under $30,000 a year), so for those in the middle – not poor enough to qualify for affordable housing and not rich enough to make life easy – it can be tough.

High costs mean high demand. If a homeowner can get $2,300 for their three-bedroom, under-1,400 square foot home, then that’s exactly what the homeowner will do.

These costs can’t last forever. If they do, Cochrane, and the province as a whole, will suffer.

And, if Cochrane is to keep those young workers between the ages of 25-60 in the community, as many on council say it must, they have to have an affordable place to live.

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