Welcome to Alberta Housing Affordability

 
Whether you're a first time home buyer or upgrading from an older home to a brand new house, you know that housing costs have really gone up in Alberta. 

 

We all know that the boom in Alberta has caused prices of materials to rise as well as wages. This is part of the equation in the increased house prices in this province.

But what would you say if you found out that the price of that new home you've fallen in love with was increased by tens of thousands of dollars through government imposed taxes, fees and charges?

What's the problem?

The other part of the equation that contributes to the high new home prices in this province is not so well known. Cities like Edmonton, Calgary, Red Deer, Grande Prairie and Lethbridge, as well as virtually every other municipality, charge what are known as development cost charges to those who are building a new home.

These charges are designed to reflect the extra infrastructure costs incurred by cities when a new house is built. The types of costs are sewers, roads, water, electrical, gas, sidewalks and others, whether one house or one hundred are built.

So, shouldn't the development cost charges included in the price of your new home only reflect the actual extra charges incurred to build your home? Of course that should be the case, but it's often not.

Development costs are the problem

Due to decades of underfunding municipal infrastructure, cities are suffering what's known as the “infrastructure deficit.” This means that their financial reserves aren't capable of funding the rebuilding of crumbling roads, sewers, sidewalks and other public amenities.

One of the “solutions” cities have come up with to “solve” their infrastructure deficit is to impose extra costs on new homes to make up their shortfall.

And it's these extra costs buyers are paying in the price of their new home which is making it especially tough for new home buyers to be able to afford that new home they have their heart set on and have worked so hard to save for.

I guess there's nothing I can do?

There is something you can do about it. You have the power to communicate. You can talk to your MLA and city politicians. You can help to address part of Alberta's housing affordability problem.

 

Have your say! Your provincial MLAs and city councillors want to hear your input.