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Core housing need and depth of need
A household is considered to be in core housing need if both:
- its housing falls below at least one of the adequacy, affordability or suitability standards
- it would have to spend 30% or more of its total before-tax income for alternative local housing that meets its needs
Depth of need is an affordability gap measure for households in core housing need. The gap is calculated by basing the difference between 30% of the core need income threshold and 30% of the household’s before-tax income.
It can also be calculated by determining if both:
- a household lives in a dwelling that is suitable and adequate
- if the reported shelter cost is less than 30% of the core need income threshold
The gap is the difference between 30% of before-tax income and reported shelter costs.
About CMHC Socio Economic Analysis
The socio economic analysis series are detailed, stand-alone research reports prepared by CMHC researchers. They present a focused analysis of housing and demographic or economic data and trends, such as core housing need among various populations in Canada.