Banff has a housing vacancy rate of zero and some of the highest rental costs in Alberta.
That’s according to a newly-released 2013 apartment vacancy and rental cost survey by Alberta Municipal Affairs, which indicates Banff’s vacancy rate was 1.2 per cent in both 2011 and 2012, but dropped to zero for 2013.
“Housing in Banff is a topic we’ve talked about for many years and this further underscores the critical need for innovative solutions to add to our community housing supply,” said Banff Mayor Karen Sorensen.
“I am not sure, though, the difference between 1.2 per cent and zero is going to be a significant difference about how people feel when they’re trying to find housing – it’s already a big struggle.”
A healthy rental market typically maintains an ongoing vacancy rate of between three and five per cent, and Banff’s rate indicates there’s not enough rental accommodation. Banff’s non-profit housing providers also maintain ongoing wait lists for most of their inventory.
Banff was one of 65 rural communities with populations between 1,000 and 9,999 included in the study by Alberta Municipal Affairs, a survey that has been done every year since 1973.
According to survey results, the highest end of the rental range for two-bedroom and four-bedroom units were in Banff. Average rental rates in the province for a two-bedroom are $816 and for a four bedroom are $1,256.
The Municipal Affairs department sampled 339 Banff units, however, 317 of those were in buildings 10 years or older, therefore not capturing some of the fewer buildings in town with higher rental rates.
Eight other communities had zero vacancy rates, including Black Diamond, Bonnyville, Bow Island, Elk Point, McLennan, Sexsmith, Stettler and Two Hills. Jasper and Westlock had vacancy rates of less than one per cent.
The Town of Banff has been struggling with a housing crunch for many years and a recent housing study determined a shortage of available and affordable rental options is Banff’s most pressing housing need.
The $54,000 housing study’s conservative estimate on the current housing shortfall is about 170 units, with conservative projections of a total shortfall of up to 455 units within the next eight years.
Alberta Health Services recently condemned a house in the 300 block of Squirrel Street. Known locally as the Hippie House, it was shut down on Feb. 24 because it was considered unlivable.
Mayor Karen Sorensen said one of council’s top priorities, developed through a series of meetings, is titled A Place to Call Home – providing appropriate and comfortable housing for all members of the community.
She said past council increased residential density – in every land use district throughout town by a factor of 20 per cent – and a new policy that reduces parking requirements in certain circumstances aims to encourage private development of rental apartments.
Sorensen said the Town of Banff’s priority will be to focus on the recommendations of the community housing task force, involving groups throughout the Bow Valley, and work with partners in the private sector and other levels of government on more housing stock.
“I think council is really focused on the coming year on a housing strategy,” she said. “The last council took positive steps in terms of ensuring we fully understand the situation – and now it’s time to stop talking and get doing.”
Banff Housing Corporation’s negotiations with Parks Canada for land on Cave Avenue are suspended, though not yet dead in the water. The plan there was for a 33-unit complex, but the topography of the site was challenging and additional site engineering was required.
In December, BHC bought two lots at 338 and 340 Banff Avenue for $1.3 million in a bid to deal with Banff’s housing crunch. The land’s zoning allows for the development of high-density apartment housing.
“BHC is investigating options on how best to develop the lands on Banff Avenue,” said Dougal Forteath, BHC’s chief administrative officer “A decision on that will be made in the near term.”
Meanwhile, Parks Canada is selling off two non-serviced residential lots at 240 and 242 Marmot Crescent for $500,000 and $550,000 respectively. The federal agency will receive sealed proposals up until May 15.
