A chart created by Andy Yan shows the relative percentage of low-income households by age group, comparing West 麻豆传媒映画to neighbouring communities. The analysis uses after-tax low-income thresholds from Statistics Canada. graphic supplied Andy Yan
The affluent community of West Vancouver, where average home prices hover at $3 million, has one of the highest rates of people with 鈥渓ow income鈥� in Metro Vancouver. At least on paper.
That surprising piece of information comes from an analysis of recently released Statistics Canada income figures by Andy Yan, director of Simon Fraser University鈥檚 City Program.
According to Yan鈥檚 analysis, there is a higher percentage of 鈥渓ow income鈥� households in West 麻豆传媒映画鈥� more than 18 per cent 鈥� than in Metro 麻豆传媒映画as a whole, where about 16.5 per cent of households are low income.
In certain areas of West 麻豆传媒映画鈥� like Chartwell and Ambleside 鈥� that percentage of 鈥渓ow income鈥� families climbs even higher, to 25 and 33 per cent of all households.
The number of people living in low income households has also risen dramatically in the last decade in West Vancouver, shooting up by 37 per cent, an increase over double that seen in Metro 麻豆传媒映画as a whole and about 10 times the rate of change in the neighbouring District of North Vancouver, according to Yan鈥檚 analysis.
But are up to a third of households living in mansions worth millions really scraping by on meagre poverty-line incomes?
Yan and other analysts say likely not.
More likely, they say, the figures reflect the limited way that income statistics capture 鈥渨ealth,鈥� particularly in the case of well-to-do immigrant families whose wealth is often generated outside the country.
鈥淚t led to a really interesting discussion,鈥� said Yan, of the numbers he鈥檚 come up with.
While rates of poverty are definitely up in suburban areas these days, seeing such high rates of low income in West 麻豆传媒映画just doesn鈥檛 appear accurate in the face of 鈥渁ll that real estate wealth and watching that Lamborghini buzz by you on the Lions Gate Bridge,鈥� he said. 鈥淚t does not compute.鈥�
Daniel Hiebert, a University of British Columbia geography professor who has studied international migration and its impact on the housing market, said such numbers only make sense in the context that 鈥渨ealth and income are separate things and we record and tax income, but leave wealth alone in Canada.鈥�
West 麻豆传媒映画has some similar patterns to Richmond in this regard, says Hiebert, where immigrants rely on wealth from overseas to buy into the local real estate market.
鈥淒oes this mean people are poor?鈥� he asks. 鈥淣o. It means we鈥檙e not tracking an essential component of economic well-being: wealth.鈥�
There is also the possibility of undeclared income, whether that is acquired in Canada or abroad, he adds.
For instance, gifts of money among family members don鈥檛 have to be declared, he said.
Richard Kurland, an immigration lawyer and policy analyst, said areas like West 麻豆传媒映画have been on his radar for the combination of low taxes paid despite stratospheric real estate sales. The issue lies in households whose members maintain they are residents of Canada for the purposes of being exempted from foreign buyers鈥� or capital gains tax in the real estate market yet don鈥檛 disclose or pay taxes on the global income which allows them to buy into that market, said Kurland.
鈥�. . . some of Canada鈥檚 wealthiest families have all the benefits of being Canadian, but may legally avoid paying Canadian income tax, even though they are living in Canada part time, because they are entitled to be 鈥榥on-residents of Canada鈥� for income tax purposes,鈥� he said.
Kurland said he鈥檇 like to see changes made to the tax system that would see high property taxes levied on millionaire mansions 鈥� which could then be lowered for those declaring certain levels of taxable household income.
鈥淚t鈥檚 a social justice issue,鈥� he said. 鈥淢illionaire families enjoy a millionaire lifestyle without contributing a millionaire share of taxes.鈥�
Read more from the
