According to CMHC’s latest Northern Housing Report, economic outlooks are positive for Yukon and the Northwest Territories. Mining has driven growth in both territories and contributed to lower rental vacancy rates in Whitehorse and Yellowknife. In Nunavut, however, mine exploration declined for the third straight year in 2017, reducing jobs. Still, Nunavut’s population is growing, and new mining projects mean that employment increases could be on the horizon.
Some highlights from the Report:
- Recovery in the commodity markets and expansion in the mining sector have led to a favourable outlook. In fact, the Conference Board of Canada forecasts economic growth to be 3% in 2019.
- The unemployment rate dropped to 3.6% in 2017, the lowest rate out of all provinces and territories.
- Whitehorse’s apartment vacancy rate dropped slightly, from 3.0% in 2016 to 2.8% in 2017.
- The average monthly rent for a 2-bedroom apartment in Whitehorse fell from $1,083 in 2016 to $1,063 in 2017.
- Yellowknife’s apartment vacancy rate decreased from 4.2% in 2016 to 3.5% in 2017.
- The average monthly rent for a 2-bedroom apartment in Yellowknife rose from $1,636 in 2016 to $1,699 in 2017.
- The employment rate, at 55%, remained low when compared to a national average of 62%.
- For the first time in 3 years, Nunavut experienced net in-migration.
- Nunavut’s relatively fast growing population is generating greater demand, compared to the rest of Canada, for larger housing units with more bedrooms.
- The average monthly rent for a 2-bedroom apartment in Iqaluit rose from $2,597 in 2016 to $2,648 in 2017.