Facing a housing crunch and a skilled labour shortage amidst startling population growth, the Yukon capital of Whitehorse has turned to a trusted northern formula: generous incentives to get things rolling.
The city, where the population has soared 13 per cent since 2006 to more than 26,000, is dangling a $500,000 tax grant for developers who can deliver 25-30 units of rental housing downtown, or mixed-use projects of commercial and retail in selected areas of the city.
Other incentives offer tax grants of up to $50,000 for mixed-use or supportive housing; and $10,000 to homeowners who simply put in a rental suite.
The rental vacancy rate in Whitehorse, the largest city in the Yukon, is estimated at 1.2 per cent and rents for a two-bedroom apartment average $960 per month.
“The rental vacancy is tight,” said Kinden Kosick of the Whitehorse planning department, adding that there has been “modest takeup” on the incentives so far. A single homeowner applied to add a rental suite, and a non-profit housing group has submitted an application for multi-unit project under the $500,000 tax incentive. Kristen said the city expects more applications to come in as news of the incentives spread.
The low rental vacancy rate and relatively high housing prices – the average detached house price as of the first quarter was $405,000 – is partly due to slow development over the past few years, Kosnick said.
The housing market has slowed recently, though, with the with local real estate association calling it “steady and balanced” but with asking prices tracking about 8 per cent to 10 per cent lower than a year ago.
