Exploring the 2023 housing market in Whitehorse, Yellowknife and Iqaluit

We’ve just released our 2023 Northern Housing Report. This report provides an in-depth analysis of the unique housing market in Whitehorse, Yellowknife and Iqaluit.

One of the things that sets housing in the Territories apart from the rest of Canada is that a significant proportion of it is provided by non-market providers. These include non-profit organizations and governments which play a critical role in shaping the housing landscape.

Snapshot of housing market conditions in the Territories

The Territories have experienced a slowdown in residential construction, indicating potential future constraints in housing supply. In addition, housing starts decreased due to labour shortages and rising material costs. At the same time, rapidly aging populations pose potential challenges in providing suitable housing and social support.

Current economic policies are influencing the housing market. Tighter monetary policy has succeeded in slowing down inflation but has made financing more difficult for both homebuyers and builders. We expect these financial policies to influence housing market dynamics into the future.

Housing affordability remains a significant challenge. Despite a slowdown in house price growth, prices remain high. Affordability has likely worsened since the 2021 Census because incomes haven’t kept pace with the rising costs of mortgage payments and rents.

While 2021 Census data reveals a decrease in core housing need in the North, this was due to less of the population living in unaffordable housing at the time. That said, the number of households living in housing that is inadequate and/or unsuitable increased.

Affordability challenges and supply-demand imbalances impact Whitehorse’s housing market

In Whitehorse, 20% of households struggle to afford market housing due to high house prices and increased borrowing costs. In 2023, the Government of Yukon raised the income thresholds for social housing eligibility. However, the availability of social housing units remains limited.

The construction sector has been impacted by labor shortages and rising costs, leading to a drop in housing starts compared to the previous year. Although resale prices in the single-detached market have cooled down from last year's record highs, they remain high. With low vacancy rates and increasing median rents, demand still outpaces supply in the private rental market.

New homebuyers faced steep increases in average monthly housing costs in Yellowknife

Housing affordability is a concern, with 28% of families unable to affordably secure market housing. The vacancy rate for rental units nearly doubled from the previous year. Despite this increase, rental rates have either remained steady or seen a slight increase over the same period.

Average home prices continue to rise even though home sales have dropped compared to the previous year. For example, new homebuyers now face an average monthly cost of $1,834, a significant 14.1% increase from last year.

In terms of construction, 2022 saw a decrease in housing starts but an increase in housing completions.

Iqaluit’s surging population intensifies affordability challenges

Iqaluit is experiencing high population growth, mostly driven by a high birth rate. In fact, Nunavut has had the highest growth rate seen since 2015. Nunavut’s population is one of the youngest in Canada with 31% of its population being below age 15. Even though youth accounts for a large share of the population, it’s the older population that’s growing the fastest. These population dynamics are leading to increased housing demand and highlights the need for more adequate and suitable housing in the area.

In 2022, the average prices of single-detached homes hit a record high, while price growth in the row house and condominium segments were more moderate. However, many households continue to face challenges accessing housing that they can afford and rising borrowing costs have made homeownership less attainable.

Nunavut continues to experience the highest rate of core housing need of any province or territory. The 2021 census reveals that the share of the population in core housing need was 40.5%, down from 47.2% in 2016. Housing quality is the main challenge in the Territory. The share of the population living in housing that was inadequate or unsuitable increased from 2016 to 2021, while the share living in unaffordable housing fell. Demographics disproportionately affected by core housing need include:

• lone-parent households
• Indigenous peoples
• renters
• families with children

The 2023 Northern Housing Report highlights current housing affordability, supply and quality challenges in Whitehorse, Yellowknife and Iqaluit. It also outlines the work being done to address these issues. In addition, the report emphasizes the need for comprehensive strategies to ensure adequate and affordable housing for all residents.

Get more detailed insights into the Territories’ unique housing market conditions.

Download the Report (PDF)

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