Single-detached housing starts keep dropping

As demand for housing in Whitehorse is projected to grow in the coming year, the supply side - both in the new housing and rental markets - is waning, according to a 2008 Canada Mortgage and Housing Corp. (CMHC) report.

As demand for housing in Whitehorse is projected to grow in the coming year, the supply side - both in the new housing and rental markets - is waning, according to a 2008 Canada Mortgage and Housing Corp. (CMHC) report.

“(The) Whitehorse population will be a positive for housing demand,“ reads the CMHC Northern Housing Report, released this week.

It notes that half the city’s population is primed for home buying.

“Research by CMHC shows that rate of home ownership in the Yukon begins to escalate between the ages of 25 to 34 and peaks between the ages of 45 to 54.“

The report says while single-detached homes remain the most popular choice for homebuyers in Whitehorse, the downward trend of new units is expected to continue.

In 2006, 132 single-detached homes were built. This number dropped to 90 in 2007 and is expected to diminish to 75 this year.

This issue has been the topic of some debate at city council recently.

Builders, suppliers and real estate agents have said Whitehorse’s economy could suffer if more single-family lots weren’t soon made available.

On May 20, Terry Bergen, the Yukon Real Estate Association’s president, appeared before city council to urge members to rescind the Green Space Bylaw, arguing it has slowed the process for opening up new land for new housing.

“The city has an obligation to its citizens,“ Bergen said. “We believe (council doesn’t) understand the seriousness of the lot shortage.“

Acting deputy mayor Jeanine Myhre said in an interview early this afternoon the city is doing all it can to meet the demand.

“We’ve already got Arkell (development) ready to go and that has some single-family units in it,“ said Myhre.

Takhini North and the former Stan McCowan Arena developments contain single-family lots as well, she added.

“From what I know, our planning department is stretched completely, and I don’t even know how much consulting work we could get done, even if we outsourced it,“ Myhre said.

The rigorous consultations on new development, which include the charette public input process and the Yukon Environmental and Socio-economic Assessment Board when development occurs on Crown land or involves territorial or federal financing, has also been criticized.

Veteran realtor Dan Lang has called for a streamlining of the city process and on May 20 urged council to bring back its planning board.

The charette process was implemented two years ago by the city and since then “has been downsized considerably,“ said Myhre.

Capital expenditures for 2008 on residential construction are expected to match the 2007 level of $140.2 million in spite of construction slowdowns.

It’s likely the rise in material, labour and fuel costs combined with “prominent” multi-family (condominium) construction in 2006, 2007, allowed spending to keep pace.

Total multi-family starts are predicted to reach 80 units this year, down from 88 last year.

On the rental side, vacancy rates, which have hovered between the high two and low four percentile since March 2005, are forecast to fall to three per cent by year’s end.

In March 2008, the vacancy rate was 4.1 per cent, its highest since March 2005, when it was 4.2 per cent.

There are more than 850 rental units in Whitehorse.

Average rents have been slowly increasing as the average two-bedroom apartment costs $755/month, up from 2006’s rate of $741.