Financial insights for families and seniors

By William Crooks

Local Journalism Initiative

A recent report, “Revenu Viable en Estrie 2024”, conducted by the Institut de recherche et d’informations socioéconomiques (IRIS), provides a comprehensive examination of the financial realities faced by residents of the Estrie region. The report, based on in-depth research and local data, highlights the income levels required for individuals and families to live above the poverty threshold. It examines how housing, transportation, and daycare services contribute to economic pressures, especially for seniors and young families. This article explores the findings from the first three chapters of the report, offering insights into the socio-economic landscape of Estrie and its challenges.

Understanding Estrie’s economic and social framework

Nestled in southwestern Quebec, Estrie is a region known for its semi-urban character, vibrant industries, and stunning natural landscapes. It is home to eight regional county municipalities (MRCs) and the major urban hub of Sherbrooke. Estrie’s economy is supported by diverse sectors, including manufacturing, agriculture, education, and healthcare, making it a vital part of Quebec’s economic fabric. Bromont, for instance, stands out as an economic powerhouse with a thriving tech industry, regional airport, and year-round recreational facilities.

However, alongside its strengths, Estrie faces socio-economic challenges. The region has a higher proportion of seniors—24.5 per cent of its population compared to the Quebec average of 20.8 per cent—and a growing number of families with young children. This demographic shift places unique demands on housing, healthcare, and public services, making financial sustainability a pressing concern for many residents.

Viable incomes and local disparities

IRIS defines a “viable income” as the amount necessary for individuals or families to meet their basic needs, participate in community life, and manage unforeseen expenses. The report highlights notable disparities in viable income levels across Estrie’s municipalities:

• Single individuals: Viable incomes range from $33,490 in Granby to $51,843 in Bromont.
• Single-parent families with one child in daycare: Viable incomes vary from $49,398 in Richmond to $63,651 in Bromont.
• Two-parent families with two children in daycare: Viable incomes span $71,044 in Lac-Mégantic to $93,951 in Bromont.

These figures illustrate the high cost of living in certain areas, particularly Bromont, where economic affluence and limited affordable housing drive up viable income requirements. Unfortunately, more than half of single individuals in the region fall below these income thresholds, reflecting a stark economic divide. Single-parent and two-parent families, while faring slightly better, still face significant challenges, particularly in areas with limited access to affordable daycare and transportation.

Housing: A mixed picture for families and seniors

Housing affordability is a critical issue across Estrie, affecting both seniors on fixed incomes and families seeking stability. The report notes that 62.2 per cent of households in the region are homeowners, a higher rate than the provincial average. However, this figure obscures disparities between urban and rural areas. For example, rural MRCs like Granit and Val-Saint-François have higher homeownership rates but also a larger proportion of substandard and unaffordable housing.

Rental options, particularly subsidized housing, are scarce in many parts of Estrie. Seniors and low-income families often face the dual challenges of finding affordable homes and managing additional costs, such as utilities and maintenance. For seniors, aging in place is often difficult without adequate support services, while younger families may struggle with limited rental stock in proximity to jobs and schools.

Transportation: Reliance on cars drives up costs

Transportation is another area where financial pressures are evident. While public transit is available in all MRCs, its limited reach and scheduling constraints force most residents to rely on personal vehicles. For families, this often means owning at least one car, if not two, to manage work commutes and daycare drop-offs. This reliance is particularly burdensome in rural MRCs like Haut-Saint-François, where longer travel distances and inadequate transit options exacerbate costs.

Interestingly, Sherbrooke stands out as a regional hub with relatively better public transit use and shorter commute times. However, even here, the reliance on vehicles remains high compared to other urban centres in Quebec. For seniors who no longer drive, limited transit options can lead to isolation, impacting their quality of life.

Daycare shortages and their ripple effects

For young families, access to affordable daycare is a cornerstone of financial stability. Unfortunately, Estrie faces a significant daycare shortfall. Only the MRCs of Granit and Brome-Missisquoi meet or exceed the 100 per cent coverage mark, meaning they have sufficient daycare spaces for demand. In contrast, regions like Sherbrooke, Val-Saint-François, and La Haute-Yamaska continue to grapple with shortages, leaving families with limited options.

The report highlights the financial strain this creates. Families often turn to more expensive non-subsidized daycare options, which can consume a substantial portion of household budgets. IRIS emphasizes that addressing this gap is crucial not only for individual families but also for the broader economy, as reliable daycare enables greater workforce participation, particularly among women.

Income inequality and poverty trends

Income disparities are another major concern. Estrie’s median after-tax income is consistently lower than the provincial average. Single individuals earn about $32,000 annually, compared to Quebec’s average of $34,400. Single-parent families and couples with children also face income gaps, with significant shortfalls in economically struggling MRCs like des Sources.

The region’s poverty rate of 13.1 per cent is higher than Quebec’s average of 11.9 per cent. Notably, the MRC des Sources has the highest poverty rate in Estrie, with 17.6 per cent of its population living below the poverty line. This economic vulnerability is compounded by limited access to high-paying jobs and essential services, making it particularly challenging for families and seniors in rural areas to achieve financial security.

The impact on seniors and families

For seniors, fixed incomes and rising costs present a unique set of challenges. Many find themselves navigating the trade-offs between maintaining their homes and affording healthcare or other necessities. The report also notes that seniors in rural areas face additional hurdles, such as limited transportation and fewer local services, which can isolate them from their communities.

Young families, meanwhile, are squeezed by the combined costs of housing, daycare, and transportation. The report’s findings suggest that targeted interventions—such as expanding subsidized daycare, enhancing public transit, and increasing affordable housing stock—could provide significant relief to these groups.

What lies ahead?

The “Revenu Viable en Estrie 2024” report underscores the urgent need for action to address the region’s economic challenges. For seniors, improving access to affordable housing and transportation could help them age in place with dignity. For young families, expanding daycare services and supporting local job creation are critical steps to alleviate financial pressures.

As Estrie continues to grow and evolve, these findings serve as a reminder of the importance of targeted, community-driven solutions. By addressing these systemic challenges, the region can create a more equitable and sustainable future for all its residents.