White: The rise of the two-income family homeowners

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One of the crucial housing issues facing Calgarians and Canadians is the rise of the two-income family, which has driven up the price and size of homes, to the point where single-income families and individuals can’t compete.

Since the middle of the 20th century, the number of two-income families in Canada has risen dramatically. The latest Stats Canada numbers I could find documented from 1975 to 2015 the number of two-income families increased to 69 per cent from 36 per cent.

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The emergence of the two-income family corresponds with the evolution of the family house from a one-storey bungalow to a two-storey home, with two or more bathrooms, as well as the two-car garage. Even the family car evolved from the one-storey station wagon to the two-storey van and then SUV.

End of a Dream

Today, it is almost impossible for single-income families (unless their single income is very high) to buy a house (detached, duplex or townhouse) as the prices have been driven up in part by the abundance of two-income families who have the ability and willingness to pay more. The same is true for single young professionals and single seniors.

And this is the case for both home ownership and rentals, unless you go to the extreme edges of the city. While more purpose-built rentals are being built today, they too are being taken by the two-income families, young professional couples and empty nesters, leaving single-income Calgarians (Canadians) struggling to afford the rents.

Bring Back the Boarding House

While doing some research on the history of urban living I was surprised to learn early in the 20th century one of the most common housing options was the “boarding house.” I couldn’t find any numbers for Calgary, but in cities like Boston and Chicago, from one third to almost one half of the citizens lived in boarding houses.

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I learned young people moving to big cities didn’t rent or buy an apartments, they moved into a bedroom room in a big house. In some cases, they would have their own bathroom, but in most cases they shared. The were served breakfast and dinner at set time so they didn’t need a kitchen.

Also drifters and people who had fallen on hard times often rented a room in a boarding house, but they would have to live by the house rules, often no drinking and gambling. Boarding houses were like micro-homeless shelters.

Yes, the boarding house was an important part of the housing spectrum 100 years ago, but not today. (see: https://housingsolutions.home.blog/2019/06/15/a-history-of-boarding-houses-ideal-forms-of-affordable-housing/)

I also learned it was commonplace for widowers to rent their spare bedrooms out as a means of earning extra income. I remember my grandmother had two women living in her house and thought that was normal.

I am thinking perhaps Calgary seniors who are struggling to afford to live in their homes today, might consider renting out an extra upstairs bedroom or two — no need to renovate the basement to meet code for a secondary suite. FYI: The City of Calgary has made the development of basement suites easier and more affordable with grants and waiving various fees.

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Or perhaps they could share one house with a friend and become a two-pension family.

The new infills (singles, duplexes and rowhouses) with the purpose-built secondary suites are an example of the modern boarding house, with family living upstairs and singles and couples renting in the basement to help subsidized the mortgage.

However, there is a big difference. Today’s single infill with a secondary suite has two kitchens and three or more bathrooms, separate entrance, furnace, laundry, etc., which adds $100,000-plus to cost compared to the boarding house, which means higher housing costs.

If we want to build more diverse and affordable housing in established neighbourhoods, perhaps we should look at the traditional boarding house model, for example, a big house where everyone gets a bedroom but everything else is shared.

We Forgot What We Learned in Kindergarten

The other major shift in urban living today is we have forgotten how to share. Family homes are larger than they need to be (which makes them cost more), because children can’t share a bedroom, parents can’t share a bathroom with their kids, kids must have their own play spaces and parents their own offices.

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The same is true for apartments and condos, which must have at least two bathrooms because guest and visitors can’t share the owners/renters’ bathroom. They also must have an ensuite laundry (no more shared laundry in the basement), a fireplace and a fridge with icemaker and water dispenser is nice to have — all of which increases the cost of condos and rents. And, of course, we must have granite countertops as Arborite just won’t do. Back in the ’70s there wasn’t a dishwasher in every kitchen. Instead, the kids bonded over whose turn it was to wash or dry the dishes. Nor did we have microwaves and we only had one TV, but the second income bought the second TV, perhaps even a third and fourth. But I digress.

Today’s homes, condos and apartments are larger (read more expensive) than they need to be because humans crave as much space, convenience and comfort as they can afford and in some cases can’t afford. And when you think of it, a 2,000-square-foot home for four people is only 500 sq. ft. per person, which isn’t that much.

Canadian home has increased in size from about 850 sq. ft. in the 1950s to almost 2,000 sq. ft. today. Over the same time, there has been a decline in the household size from six-plus, to two kids and two adults. It is hard to imagine how families of six and larger used to live in 850-sq.-ft. house.

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Last Word

Calgarians and Canadians are waking up to the fact the “Canadian Dream” to own your own home (and not just any home, but one with all the modern conveniences and comforts) is not going to come true unless you have two incomes.

The reality is homeownership for the average Canadian has only been feasible for the past 75-plus years, a period of sustained economic growth based on the capitalization the country’s mineral resources. Yes, we were living the dream, but like all dreams, they must come to an end. As we enter a period of slower or even economic decline, the reality is the dream of home ownership will also decline.

At some point, we are going to have to wake up and face the reality: our homes need to get smaller. Or everyone is going to have to find a way to get a second and maybe even a third income.

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