BANFF – The high cost of living continues to be Banff’s biggest challenge.
According to Banff’s recently released 2018 community social assessment, lower wages and higher housing costs are the reasons this is considered the tourist town’s most significant social challenge.
“Cost of living continues to be a struggle for many Banff residents and this was no surprise at all,” said Alison Gerrits, the Town of Banff’s community services director, noting it is crucial to have a detailed understanding of Banff’s social picture in order to support community wellbeing.
“The elements that contribute to this high cost of living include high housing prices, lower wages as compared to other places, high food costs, childcare, and difficulty finding other low cost goods and services within the local market.”
The 86-page community social assessment was developed after conversations involving more than 800 residents, and detailed analysis of Statistics Canada data and community agencies’ information for the municipality.
Compounding cost of living challenges are the income levels in Banff, where 60 per cent of residents earn less than $40,000 a year, with only nine per cent earning more than $80,000 annually.
Comparing that to Canmore, Gerrits said 45 per cent of residents there earn less than $45,000 and 23 per cent earn more than $80,000.
“That makes a big difference in terms of disposable income, in terms of savings, in terms of homeownership,” she said.
Statistics gathered for the social assessment also show that single moms in Banff make approximately $19,000 less than single dads, making it the biggest gender-income disparity in the community.
Gerrits said this is an important statistic to be aware of, because women lead 75 per cent of all lone households in Banff.
“This kind of imbalance is seen almost everywhere, so Banff is not different than other communities in this respect,” she said. “But in a community where costs of living is high, the challenge is significant.”
Housing affordability and finding a place to live continues to pose a challenge for Banff residents.
The assessment found that one third of all Banff households spend more than 30 per cent of their total income on housing cost and Banff has the highest percentage among comparable communities of people living in “unsuitable dwellings.”
As of 2017, Banff’s rental property vacancy rate was 0.6 per cent following several years sitting at zero. A healthy rate is considered between three and five per cent.
Gerrits said vacancy rates for 2018 are still being compiled, so it’s too early to tell if initiatives like Ti’nu, the municipality’s new 131-unit rental apartment housing, have put a dent in the vacancy rate.
“Looking back as far as I can, I’m not sure when Banff ever achieved that percentage,” she said.
Gerrits said it is clear a focus on housing is still required, noting many residents are clearly frustrated with both the quality and price of the housing market overall.
“Most involved in the consultation process cited appreciation for the municipal focus on housing, with projects like Ti’nu, and asked to continue working on addressing the issues pertaining to supply and cost,” she said.
On the housing front, the municipality continues to look at housing options for residents. Nothing has been set in stone in terms of development of Town-owned residential lands on Banff Avenue and Cave Avenue.
The Banff Housing Corporation (BHC) is potentially interested in building price- restricted apartment style units on its lands on the 300 block of Banff Avenue close to the downtown core.
BHC purchased two lots at 338 and 340 Banff Ave. for $1.3 million in 2013. Parks Canada released six lots at 145-155 Cave Ave. to the municipality in 2015 for a nominal fee of $1. The land discount was contingent on affordable rental housing projects being built.
Gerrits said a report would go to council, hopefully before summer, for a decision on where to go next, based on where the demand lies and what type of housing people want.
“So the financial viability on what both sites potentially could look like and what kind of product offering, and a determination of where the greatest need is,” she said.
Grant Canning, Banff’s deputy mayor, said council would focus on ways to enhance quality of life for residents, noting housing is just one part of that.
“The very high cost of living in this community is a challenge, and when you compound it with relatively low wages compared to other communities, the two just exacerbate each other,” he said.
As well as looking at options for Cave Avenue and Banff Avenue lots following the success of Ti’nu, Canning said council’s 2019-22 strategic plan also identifies other ways of encouraging development of housing.
He said options for land use bylaw amendments would be presented in 2020 to encourage development of rental housing, including means to encourage development of duplex, triplex, four‐plex, apartment style housing
“That’s certainly another big one that going to be on the list,” said Canning.
As part of its strategic plan, council also wants to see a continued push with the Banff Access Program. It’s a program that currently provides financial breaks to certain residents meeting gross income criteria to host a programs, such as community classes, transit passes, out-of-school club, summer fun, drop-in recreation programs and more.
“We want to explore and create more opportunities for people, particularly those who are perhaps at the lower end of the wage scale to participate in programs at a lesser costs,” he said. “It’s all about enhancing quality of life.”
Although significant work has been done in the overall area of affordability since the last social assessment in 2014, Gerrits said it’s clear that additional initiatives are still warranted.
“Lots of things have occurred, but it’s clear there’s still work to be done,” she said, noting council has given clear direction it wants to build on work around this ongoing social challenge.
“This is the reason that council incorporated cost of living as a strategic area of focus during its planning for the 2019 to 2022 time frame.”
