How tiny homes could provide a path to security for new Canadians

Tiny homes are more than just a trend;they'rea triple threat, an emerging lifestyle, a potential solution to affordable housing and,possibly,the first home of anew immigrant renter.

In St. John's, about 12,100 households live in unaffordable housing, of which nearly65 per cent rent. More than8,900 tenant households require improvement to meet one or more ofaffordability, adequacy, or suitability standards.

Affordable housing is a real problem in our city, and this is only exacerbated when one isa new immigrant. A lack of understanding of the real estate market,whether renting or buying,the loss of a social network, language barriers and employment challenges make the search foraffordable housing akin to running on a never-stopping treadmill.

Regardless of the economicstatus, the path to affordable housing is fraught with obstacles for a new immigrant in their firstyear in Canada.

"The main concerns are that they are required to establish Canadian credit which often isnot an instant item to secure," said mortgage professional, Cheryl Stoyles-Sellars of Verico Premiere Mortgage Centre.

"This is typically arranged with the financial institution that theyinitially open a Canadian bank account with. There is often a need to do a secured credit productto establish the credit item."

I think it can be successful for particularlyfirst-time buyers, immigrants, millennials and retirees.- Chris Janes,

For some immigrants this is an easy task, but for others who may lack the financialmeans, a secured credit productcan't be acquired easily.

In thefirst year, for example, new immigrants don't have room to contribute to an RRSP, as theretypically is notany Canadian source of income to report from the previous year. Theseimpediments makerenting seem like the only viable option for housing propelling new immigrants toward tenancy,at least when they first arrive.

Echoing these thoughts, Realtor Amanda Arsenault of Hanlon Realty said, "Financinghas to be the biggest barrier [for new immigrants]. The Canadian government and the provincialgovernment need to realize this because immigrants are a huge part of Canada's today, tomorrowand future."

Tiny homes, big possibilities

Stephenville's Brook Street is now home to anew subdivision of 600-square-feet homes that are complete with appliances, a solid foundation,a backyard and sodded lawn and all only for $90,000 busting the stereotypicalimage of ahouse on wheels.

Some might assume that these homes are simply a fad, but,with an averagehome costing over a quarter of million dollars, they may be a sustainable solution to the lack ofaffordable housing for several demographics, including first-time immigrant renters, likeinternational students, who often end up living in dark and dank basements to conserve their finances.

Chris Janes, senior market analyst with Canada Mortgage and Housing Corporation, saystiny homes work.

"For anybody looking for space that is economical, innovativeand comfortable[and] relatively close to urban amenities. I think it can be successful for particularlyfirst-time buyers, immigrants, millennials and retirees," said Janes.

He indicated that owing to the changinghousehold composition, tiny homes were an emerging lifestyle.

Not only a solution for affordable housing, Winnie Lei, a ReMax realty specialist withSt. John's Life, said tiny homes could be the answer to downtownparking woes.

"It might be a good fit for torn-down properties downtown where theextra square footages can be used for off-street parking," said Lei.

Recent developments in the City of St. John's regulation now include tiny homes as anin-fill in certainresidential zones, as well as a new zone for pocket neighbourhoods of tinyhomes.

But not everyone is sold on the idea of a tiny home. The size, lack of information aroundappropriate city bylaws regarding this housing model and finding appropriate financing aresome reasons why tiny homes haven't taken off (yet) in St. John's.

"It has proven very difficult for clients to obtain mortgage financing on tiny homes. Thelenders would consider them to be in the same category as mobile homes or mini homes," saidStoyles-Sellars.

Despite this, its economical, low-carbon footprint qualities, the low energy andmaintenance costs, and its pricemake this model attractive to many including developers, first-time homebuyers and, subsequently, renters.

For new immigrants who are limited financially in their abilityto buy or rent when they first arrive and, sadly, end up in inadequate and unsuitable homes (suchas dark and dank basement apartments), this provides a new housing option.

A home is more than four walls and a roof. It is a fundamental human right.And tiny homes are a potentialsolution to the affordable housing predicament not only for first-time home buyers but also renters.

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