Struggles of BIPOC Youth in the Housing Crisis
“Affordable? That’s not the word.”
The affordable housing crisis is at an all-time high in Canada, and the entire market is almost completely inaccessible to young people at risk of homelessness.
As of September 2023, Rentals.ca, a popular rental-listing website, has reported that Mississauga and Brampton, respectively, are the fourth and fifth most expensive cities in the country to rent in. One-bedroom apartments in both cities average $2300/month while two-bedroom apartments average $2700/month–a collective increase of over 44% from the previous year (1).
Even with these dire increases, the rental vacancy rate is the lowest it has been in Ontario since 2002, at just under 2% (2). Yet, while vacancies are low, there are not enough homes for everyone, which has caused rental rates to skyrocket in recent months. Rents have become so high in the GTA that when folks list their shared bedrooms for over $1000/month, they find new roommates within a matter of days (3).
Amid the sea of high rents, tenant competition, and an ever-isolated world, young people struggle the most. Whether a young person is on the brink of homelessness or finally starting to pick up the pieces after tragedy strikes, they are disproportionately impacted by the inaccessible nature of the housing market. A number of factors expose young people to a perpetual risk of homelessness, and once a young person falls into the cycle of homelessness, it becomes increasingly difficult to escape.
Low Social Connection
Youth experiencing homelessness are some of the most isolated individuals in our society. Young people are supposed to have a network of support in the form of parents, teachers, community leaders, siblings, and even friends to have their best interests in mind. However, homelessness creates a barrier to all of this through family breakdown, little to no access to education, and broken connections to the community as time passes, leaving the youth more vulnerable than ever to the world.
Especially in today’s housing market economy, young people have a hard time finding peers and trusted adults who can take them in their time of need, let alone share a room with them for $1000/month.
Credit Score
The credit score is one of Canada's most telling markers of affluence and financial maturity, and it’s something that the majority of landlords now request as part of a tenant’s application (4).
This practice, while understandable, discriminates against young people with a shorter credit history and fewer opportunities to build credit. Credit scores also don’t account for one’s personal savings, social assistance, or ability to pay rent without a taxable income. Credit is also highly sensitive and incredibly easy to destroy without adequate financial literacy.
A young person growing up in a disadvantaged community without access to financial literacy, stable employment, or even credit of any kind will struggle immensely to obtain and maintain a 700+ credit score.
Guarantors
When a young person does not have a good credit score, landlords often ask for a guarantor or a co-signer, someone the landlord can hold financially liable for the cost of rent and any arrears should the young person default on their payments. However, youth fighting to escape homelessness rarely have an adult in their life whom they can ask to be a guarantor. Some youths may no longer be in contact with their parents; some youths’ parents have passed on. Other youths may arise from disadvantaged families, meaning that even their parents’ credit scores are low and not viable for guarantorship.
The fears around renting to young people and a lack of adult financial guidance lead to even financially responsible youth slipping between the cracks of housing.
“They asked if I was a student, if I was working full-time or part-time. When I let them know that I was on Ontario Works, they said ‘no, I can’t rent to you because of that.’”
Youth experiencing and at risk of homelessness need more opportunities for growth in our society to succeed in their futures. REST Centres is committed to advocating for BIPOC youth in the Peel Region who are just trying to survive with few others in their corner to support them. We are dedicated to helping youth gain advantages in their lives and build their capacity for independence and greatness. With your help, we can continue to leave a lasting impact with our food and rent subsidies, tenant and financial literacy training, and our social integration programming designed to strengthen bonds and social skills.