While LNG percolates, Kitimat remains most affordable for housing ... for now

The latest report on Housing affordability in Northern British Columbian is providing a snap shot for those in the Northwest as to how the changing nature of the regional economy is impacting on housing across the area,

The BC Northern Real Estate Board has posted the results of their findings on Housing Affordability Indicators in Northern British Columbia for 2018 and of the four major communities of the Northwest, Kitimat remained the most affordable, though with LNG Terminal ramping up significantly in the Kitimat region, that status may not be held for much longer.

The BCNREB outlined how they determine housing affordability and what factors have been considered to deliver those findings.

The BC Northern Real Estate Board (BCNREB) Housing Affordability Indicators estimate the proportion of median household income required to cover the major costs associated with home ownership. These include mortgage costs, municipal taxes and fees, and utilities for the average single-family home. 

The higher the measure, the more difficult it is to afford a home. For example, an affordability measure of 30% means that home ownership costs, including mortgage payments, utilities, and property taxes for a given year take up 30% of a typical household’s pre-tax annual income. 

This edition of the Housing Affordability Indicators for northern British Columbia is based on a refreshed data-set that updates baseline variables to 2015. The revised indicators correct for errors that can develop over long periods of extrapolating baseline data. Historical data for 2010 has been included for comparison purposes.

As for the data release, the percentage of median household income required to finance home ownership was highest in Terrace at 30.4%, with Prince Rupert next at 28%. 

Smithers held down the third spot with 26%, while Kitimat home buyers would have required 20.6% of their median household income in 2018 to finance a home purchase. 

As the prices continue to rise across the Northwest, those values will most likely shift when the 2019 report is compiled next spring.

The full review covering 2010-2018 for Northern BC can be reviewed below

When it comes to the average Single Family House pricing of the region Terrace once again hits the top end for housing affordability with an average price closing in on $350,000.

Prince Rupert has seen a steady rise in the price for an average residence as well, pulling up just short of the $300,000 mark from the 2018 numbers.

Smithers paced Prince Rupert for its 2018 numbers though results have been much more consistent in the Bulkley Valley over the last ten years.

Kitimat also approached a median price of $300,000 through 2018, though much of that total comes prior to the announcement of the Green Light for Kitimat LNG, which will shape the results of 2019.

The BCNREB does note that of all the Northern Communities, Kitimat saw the largest increase in 2018 with the price jumping by 34% over the course of last year.

In their introduction to the Report, the BCRENB notes that housing is considered affordable when it is at less than 30. Observing that "an affordability measure of 30% means that home ownership costs, including mortgage payments, utilities, and property taxes for a given year take up 30% of a typical household’s pre-tax annual income. "

You can review the full report from the Real Estate Board here.

To gain some insight into the Prince Rupert Realty market see our weekly archive of the top end listings in the city, where we track the ten high end listings that pace the local market.

For more items of interest related to real estate in the Northwest see our archive page here.

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