COVID-19 pandemic exacerbates challenges in the North

December 2, 2021

The Territories have persistently faced affordability challenges — long before the pandemic. There is and has been a lack of housing options along the entire housing continuum.

This is partly due to the high cost of construction.

Due to the closure of lumber mills as a COVID-19 preventative measure, suppliers were not able to keep pace with the strong demand for lumber that persisted throughout the pandemic. This caused volatility in lumber prices across Canada.

This is especially challenging when there are already significant housing supply challenges in the North.

Recent mortgage rate trends led to the sharp increase in value of real estate transactions in some markets in the North.

The report focuses on housing market conditions across the 3 major centres in the Territories:

Whitehorse
Yellowknife
Iqaluit

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Affordable housing is out of reach for many households without financial assistance in Whitehorse

Only 13% of households in Whitehorse could afford rent in a mobile home, a studio, or a 1- or 2-bedroom apartment without assistance.
Increasing demand and limited supply brought record high resale prices for single-detached homes.
Core housing need was highest among the 15 to 24 years category at 19%.
Housing starts in Whitehorse more than doubled in 2020 to 478 units.

In Yellowknife, housing affordability is impacted by the expanding senior population

Sales and average home prices reached all-time highs supported by economic recovery and low mortgage rates.
Rental supply and vacancies decreased as demand remained constant throughout the year.
Core housing need was highest in one-person households, most notably amongst the senior population.

Younger population in Iqaluit, Nunavut faced significant market affordability challenges

Approximately 80% of households 24 years old and younger couldn’t afford any market option in 2019.
Rental demand remained strong in Iqaluit in 2020 as the vacancy rate was less than 1% for the third consecutive year.
Despite strong demand for all housing types, there was little supply added to the market due to a lack of available land.

Download the 2021 Northern Housing Report (PDF)