Poverty by Housing Tenure
Definition
Percentage of families living in poverty who own versus rent their housing.
The Market Basket Measure (MBM) is Canada’s official poverty line. It is based on the cost of a specific basket of goods and services representing a modest, basic standard of living as determined by Employment and Social Development Canada (ESDC). If a household’s disposable income falls below the amount needed to purchase this basket of goods and services all members of the household are considered to be living in poverty.
Tenure refers to whether the household owns or rents their private dwelling. A household is considered to own their dwelling if some member of the household owns the dwelling even if it is not fully paid for, for example if there is a mortgage or some other claim on it. A household is considered to rent their dwelling if no member of the household owns the dwelling. A household is considered to rent that dwelling even if the dwelling is provided without cash rent or at a reduced rent, or if the dwelling is part of a cooperative.(https://www12.statcan.gc.ca/census-recensement/2021/ref/dict/az/Definition-eng.cfm?ID=households-menage024)
Measurement and Limitations
The first version of the Market Basket Measure was established in 2000 by a working group of federal, provincial and territorial officials, led by Human Resources and Skills Development Canada (HRSDC). Since then, it has been revised several times, most recently between 2018 and 2020. In 2019, with passage of the federal Poverty Reduction Act, the Market Basket Measure was designated to be the official measure of poverty in Canada.
The MBM thresholds represent the cost of specified qualities and quantities of food, clothing, shelter, transportation and other necessities for a reference family of two adults and two children. A calculation is made to adjust the MBM thresholds for other family sizes.
The MBM thresholds (2018-base) reflect the cost of the following five MBM basket components:
- A nutritious diet as specified in Health Canada’s 2019 National Nutritious Food Basket.
- A basket of clothing and footwear according to the 2012 Social Planning Council of Winnipeg and Winnipeg Harvest Acceptable Living Level (ALL) clothing basket.
- Shelter cost of renting a three‑bedroom unit (as per the Canadian National Occupancy Standard for a reference family of 4), including electricity, heat, water and appliances.
- Transportation costs – a combination of using public transit and owning and operating a modest vehicle.
- Other necessary goods and services, including cell phone service.
One advantage of the MBM versus other measures of low income is that it takes into account variations in the cost of living in different parts of the country. Currently, MBM thresholds are calculated for 53 geographic areas (19 specific communities and 34 population centre size and province combinations). A complete list of Market Basket Measure thresholds can be found at https://www12.statcan.gc.ca/census-recensement/2021/ref/dict/tab/index-eng.cfm?ID=t2_2.
One limitation of the MBM is that it is a relatively recent way of measuring low income and continues to undergo revisions. In comparison with other measures, such as the Low Income Measure (LIM) and the Low-Income Cut-Off Lines (LICO), trend data is currently more limited.
For a more extensive description of the Market Basket Measure presenting results from the most recent comprehensive review see: https://www150.statcan.gc.ca/n1/en/pub/75f0002m/75f0002m2020002-eng.pdf?st=bJkZEtod
Source
Customized Census Data, Table EO3372 (Target Group Profile of Owners and Renters, Economic Families, 2016 and 2021) acquired through the Canadian Community Economic Development Network’s Community Data Program.
Poverty by Housing Tenure in the Sustainable Development Goals
Click on the SDG to reveal more information
1. End poverty in all its forms everywhere
Extreme poverty rates have been cut by more than half since 1990. While this is a remarkable achievement, one in five people in developing regions still live on less than $1.90 a day, and there are millions more who make little more than this daily amount, plus many people risk slipping back into poverty.
Poverty is more than the lack of income and resources to ensure a sustainable livelihood. Its manifestations include hunger and malnutrition, limited access to education and other basic services, social discrimination and exclusion as well as the lack of participation in decision-making. Economic growth must be inclusive to provide sustainable jobs and promote equality.
3. Ensure healthy lives and promote well-being for all at all ages
Ensuring healthy lives and promoting the well-being for all at all ages is essential to sustainable development. Significant strides have been made in increasing life expectancy and reducing some of the common killers associated with child and maternal mortality. Major progress has been made on increasing access to clean water and sanitation, reducing malaria, tuberculosis, polio and the spread of HIV/AIDS. However, many more efforts are needed to fully eradicate a wide range of diseases and address many different persistent and emerging health issues.