'There's a real crushing effect': Number of renters in Ontario rising alongside costs, housing index says | Canada News Media
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‘There’s a real crushing effect’: Number of renters in Ontario rising alongside costs, housing index says

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The number of people renting in Ontario is going up, and so are rental prices, putting more pressure on an already precarious housing system.

This according to the Canadian Rental Housing Index, released on Monday. The index says that Ontario is home to more than 1.7 million renters, up 10 per cent since 2016.

Meanwhile, average rental prices in the province rose 27 per cent between 2016 and 2021.

The regions that saw the biggest spike in rental prices in that span were in the Greater Toronto Area (GTA), and included Halton (35 per cent), York (34 per cent) and Peel (31 per cent).

“What we look to is where the pressure is,” Marlene Coffey, CEO of the Ontario Non-Profit Housing Association (ONPHA), told CP24.com.

“So what we’re seeing is that the pressure of what at one time would have been a big city problem is pushing out into the suburbs.”

Coffey says that more and more renters across the province, both in larger cities and in outlying suburbs, have had to commit larger portions of their income to paying rent, putting them at a higher risk of becoming homeless.

“The threshold of what people are paying at 30 per cent and 50 per cent of income [is] increasing and so where there’s a real crushing effect is when people can no longer afford a place to live,” Coffey said.

“And then that leads to other things that we often see in our communities; homelessness and pressure on the health-care system, the justice system and social supports.”

In Toronto, the percentage of people spending more than 30 per cent of their income on rent is 40 per cent, according to the index, while 18 per cent of people are spending over 50 per cent of their income on rent.

In some of Toronto’s suburbs, those numbers are much higher, according to the index.

For instance, of the 14, 920 renters in Richmond Hill, 51 per cent of them spend more than 30 per cent of their income on rent and utilities, while 27 per cent spend more than 50 per cent of their income.

According to housing experts, spending more than 30 per cent of your income on rent is classed as unaffordable, while spending more than 50 per cent is considered “crisis-level.”

“What’s happening now is because this is all about supply, demand and cost, and we know that there’s incredible pressure around the economy and around increasing costs across the board,” Coffey said.

“And so the shift from what we saw previous to the five years [2016-2021] is that there’s an increase in those that are carrying more burden, so tipping into that 50 per cent plus of income going to rent and utilities.”

In the City of Toronto, average rent and utility costs rose about 20 per cent in that five-year span, from $1,242 in 2016 to $1,560 in 2021.

Coffey says that increasing the number of renter-dedicated non-profit housing units is one way to ease the housing burden for renters in the GTA.

“Non-profit housing is purpose-built rental housing that has a purpose and mandate to maintain affordable housing and deeply affordable housing,” she said.

“[Non-profit] housing providers are landlords that rent as opposed to offering a solution in home ownership, so we offer the solutions in the rental part of the continuum, where affordability and deep affordability are part of our mandate. We’re the only group that delivers long-term, stable, affordable housing.”

The findings in the index are consistent with other data that points to record-high rental costs across the country.

In September, the National Rent Report found that the average cost of all rental units in Canada hit $2,043, crossing the $2,000 mark for the first time ever.

As Ontario’s population continues to rise, rental costs are likely to rise with it unless more supply is built in time to keep up with demand. And the rising cost of living is expected to continue impacting renters, landlords and homeowners alike.

“Ontario is a province of growth, so there’s sheer volume of growth, there’s the mix of supply and demand, and then there’s the mix of costs; being operating costs, utilities, insurance, taxes, all of that is inflating the cost of living,” Coffey said.

“[But] ideally, what we would like to see is for people to have choice – to have choice in ownership, to have choice in renting and ensure that renting is decent, stable and affordable.”

 

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

Companies in this story: (TSX:T)

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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