About 5.1 per cent of Canadian households were considered to be in severe housing need, spending 50 per cent or more on shelter in 2006. The CMHC consider households that spend 30% or more of total before-tax household income on shelter expenses, have a "housing affordability" problem. Shelter expenses include "rent and any payments for electricity, fuel, water and other municipal services" for renters and "mortgage payments (principal and interest), property taxes, and any condominium fees, along with payments for electricity, fuel, water and other municipal services" for home owners. In 1986, CMHC entered into Global and Operating Agreements under the National Housing Act and the CMHC Act, with the provinces and territories regarding administration and cost sharing of social housing programs. The core housing need concept was developed and adopted as an eligibility criterion to target households who were in need and as a basis to allocate federal funds through CMHC to participating provinces and territories. Core housing need does not measure progress against some measurable indicator. A 2011 article said that affordability of housing public policy analysts should also monitor other indicators that are more appropriate for the contemporary Canadian context such as, what proportion of rental units are affordable to a median income rental household, a comparison of wage requirement needed to rent unit, the demand for housing assistance, the number of households in core need as a milestone measure, the number of people using emergency homeless shelters, number of people filing notice of eviction, arrears or foreclosures, rental vacancy rates at market prices, rental vacancy units at modest-low income stock and the number of MLS sales affordable to marginal buyers. Eighty percent of Canadians are served by market-based housing, which includes individual home ownership and private rental housing. In the market-based housing system, individuals finance their own housing, independent of government assistance. A 2019 RBC Economics report on home affordability said that, in nine of the 14 market areas they track, a majority of Canadian families are able to purchase an average home. The most affordable markets are Saint John, St. John’s, Regina, Quebec City and Halifax, while the least least-affordable markets are Vancouver, Toronto, and Victoria. However, the shelter-cost-to-income ratio (STIR) is well above 30% for the median income. Nationally, it is 48.7% for two-story homes. Major cities such as Vancouver rate worst in the world at 88.9%. Calgary is considered affordable at 36.7%. Montreal is 41.8% and Toronto is 53.4%.