Banff and Canmore appear to alternate back and forth in terms of which community has higher housing costs.
That’s according to a new housing study prepared by Calgary-based Housing Strategies for the Banff Housing Corporation, which found that rental and home ownership prices are well above national and provincial averages.
The study looked at both rental rates and ownership prices of four communities, including Banff, Canmore, Whistler and Jasper. Whistler consistently ranks the most expensive place to live of the four communities.
Banff officials say the findings in the $54,000 housing study will help various organizations, including Banff Housing Corporation, in their future plans for housing.
“I think housing affordability is an issue in many communities,” said Banff Mayor Karen Sorensen, noting this report and its recommendations will not just sit on the shelf.
“I think what’s changed here over time is when people in Banff couldn’t afford to reside here, they had Canmore as an option, but that’s no longer an option for many and they are moving out of the Bow Valley.”
The study compared Banff’s rental rates to those in Canmore, Jasper and Whistler. They analyzed rates for a studio, and one-, two-, or three-bedroom units. Whistler has the highest rental rates of the four communities examined.
In 2012, average rents in Banff were the second highest among all four communities, however, according to the housing needs assessment, there has been a recent shift.
The study concluded current average rents for shared accommodations and bachelor suites are higher in Banff than they are in Canmore, while current average rents for one-, two- and three-bedroom units are higher in Canmore than in Banff.
“Depending on the year and the type of dwelling being examined, Banff and Canmore alternate back and forth in terms of which community has the higher housing costs,” wrote the consultants. “When compared to provincial and national housing indices, housing costs in the Banff region are consistently and significantly higher.”
As for home ownership, Whistler has the highest purchase prices for home ownership of the four communities. The study looked at prices for single-family, half-duplex, townhouse and apartment.
According to 2012 sales data, housing prices in Banff are, for the most part, the second highest of the four communities ahead of Canmore with two exceptions: the median sale price of half-duplexes in Canmore during July-September was higher than the median sale price of all half-duplexes sold in Banff between January and December 2012; and the median sale price of all apartment-style/stacked townhouses sold in Banff between January and December 2012 was higher than the median sale price of similar units sold in Whistler and Canmore during July-September.
“It should also be noted that, currently, the median sale price for single-family homes in Banff are very close to the median sale price for single-family homes in Canmore and Jasper,” wrote the consultants.
Housing Strategies Inc. found that market ownership prices in Canmore tend to be more volatile, whereas ownership prices in Banff tend to be more stable.
The consultants also revealed that higher-priced homes in Banff tend to remain on the market longer, while lower-priced homes tend to move quickly.
“Due to the legislated growth restrictions and residency requirements, Banff may not be a free-market economy when it comes to housing the way a traditional free-market economy works,” the consultants wrote.
“Appropriate solutions for Banff must take that into consideration, and may need to address perceived loopholes in those legislated constraints.”
The consultants concluded that Banff residents continue to express many of the same issues and concerns regarding housing challenges and priorities identified in previous housing studies.
“The primary change from previous housing studies is that overall housing costs are increasing in Banff, leading to decreased housing affordability and choice,” they wrote.
Statistics Canada data for 2011 won’t be available until August, but the consultants looked at the 2006 data.
That 2006 information shows average housing prices were $474,916 in Banff, $522,646 in Canmore, while the average in Alberta was $293,811 and in Canada $263,369.
The 2006 data shows average monthly payments for Banff homeowners was $1,318 in Banff, $1,296 in Canmore, while the average in Alberta was $1,016 and $839 in Canada.
As for renters, data shows the average monthly payments for Banff renters were $931 and Canmore $1,064, whereas the Alberta average was $754 and the Canada average was $671.
