PITFALL OF PROSPERITY
HOUSING CRUNCH A THREAT TO BOOM
Alberta’s population growth is outpacing the rest of the country as the province’s economy and robust labour market continue to attract record levels of newcomers, but social agencies are warning a lack of affordable housing is threatening that prosperity.
During the three- month period between April and June 2014, the province’s population increased by 35,000 to more than 4.1 million.
The increase was almost 2.5 times that of anywhere else in the country, fuelled in part by a record number of immigrants from abroad for a single quarter. Between April and June, Alberta settled 12,708 immigrants, according to data released by Alberta Treasury Board and Finance.
“We should recognize and celebrate it. Imagine if we didn’t have the people to do the work,” said Fariborz Birjandian, executive director of the Calgary Catholic Immigration Society.
A low, 4.9 per cent unemployment rate continues to draw people to Alberta. Birjandian says many newcomers don’t have trouble finding some kind of work, even if it often takes longer to get a job in their chosen profession until their foreign credentials are recognized.
“The biggest challenge people have now is finding suitable accommodation,” Birjandian said.
The Canada Mortgage and Housing Corp.’ s April 2014 market survey measured Calgary’s residential vacancy rate as the lowest in the country, at 1.4 per cent. The average rent for a two- bedroom apartment in Calgary was $ 1,267.
Birjandian described the supply of affordable housing as “amazingly bad,” and said the situation may soon steer skilled workers away from the city even though they’re still needed.
“In the future, it could not make sense to come to Calgary,” he said.
Todd Hirsch, chief economist with ATB Financial, said while there are plenty of jobs for both skilled and unskilled workers, finding housing can be challenging.
“Calgary is still a very expensive city in which to live,” he said.
“Yes there are a lot of jobs available for unskilled workers ... the problem is unless you have a very good support system already in place when you arrive, it’s difficult to get set up because it’s expensive.”
During the same three- month period earlier this year, Alberta had a net influx of newcomers from other parts of Canada that was the second- highest on record: 13,204 more people than those who left for elsewhere in the country.
“We are in a crisis for affordable housing,” said Diana Krecsy, CEO of the Calgary Homeless Foundation. “Business is booming, but we have nowhere to house them.”
Calgary’s low vacancy rate is a problem that emerged over time: it’s estimated the city has lost approximately 11,000 rental units between 2001 and 2011, mainly to condominium conversions.
Agencies that help the homeless have blamed the low vacancy rate for making it more difficult for working people to move out of shelters into a permanent home.
One group particularly hard hit has been homeless families. Inn From the Cold, an agency that operates a shelter for people with children, reported a 20 per cent jump in clients earlier this year. Seasonal jumps in family homelessness weren’t uncommon in the past — particularly around the school calendar — but Krecsy said that’s no longer the case.
“We’re seeing it all year long now,” she said.
The homeless foundation is responsible for administering and implementing the city’s 10- year plan to end homelessness, working with social service agencies, government and community organizations.
“We need municipalities to open up land, we need landlords to open their doors to affordable housing and we need to expand our housing stock,” Krecsy said.
Krecsy and Birjandian called on the city to permit legalized secondary suites as a way of creating more affordable housing. It’s a measure that has so far failed to win support on a city council divided between supporters and opponents.
“Let’s start moving down that path instead of creating barriers,” said Krecsy.
Although legalizing secondary suites would be a positive step, Krecsy noted it’s not a cure- all.
Different levels of government need to develop affordable housing strategies and work with private- sector builders to find ways of getting more market- rental housing and affordable housing built, Krecsy said.