Single-family homes are expensive and they’re getting costlier every day.
OK, so prices have actually dropped over the summer, but they’re still 12 per cent higher than they were a year ago and it’s a pretty good bet they’ll continue to rise at a faster rate than most people’s paycheques.
Prices in Okotoks are still considered affordable compared to some other areas of the country, but as they continue to move upward, they become out of reach of more and more people. Throw in higher interest rates and a ballooning cost of living, and home ownership becomes increasingly difficult for those not already in the market (not that it’s necessarily easy these days for those who already own a home).
Detached homes rule the market in Okotoks, with almost 80 per cent of sales last month falling into that category. Not surprisingly, only nine of the 56 sales in September were for properties under $400,000, which certainly limits opportunities for first-time buyers.
Okotoks is a single-family-centric town so the natural inclination when growth is proposed is to maintain that status quo and build more of the same. Doing so preserves the streetscape as well as that family friendly vibe, however if young families can’t afford to buy those detached homes, exactly how friendly does our fair town become?
That’s not to say those homes wouldn’t be snapped up as buyers from the city or other parts of the country are likely to view them as bargains, so building more of the same still works from a developer’s perspective, but I’m not so sure it serves the town well. If you build increasingly costly single-family homes, you’ll have a front row seat to watch Okotoks’ population age before your eyes.
I’ve seen it happen, a community of young families replaced by a sea of empty nesters, and although it took decades to get to that point, it created an imbalance that isn’t entirely healthy. Enrolment continued to decline at my son’s elementary school until it closed after his Grade 5 year.
With all kinds of development in the works, Okotoks has an opportunity to address the fact that fewer and fewer buyers will be able to afford a single-family home in the years ahead, presuming, of course, that prices continue to outstrip earning power. Projected growth in the southwest and northeast regions of town are of jaw-dropping proportions, but they do provide a canvas to create neighbourhoods for a new reality.
From condos to townhouses to duplexes, there’s an ability to build more affordable housing options, thereby giving younger people a greater chance to live here. These folks will more than likely build some equity in their new digs before moving on to something bigger to accommodate a growing family in an ongoing cycle that’s able to serve all sectors of the market.
We’re seeing this housing diversity to some extent with current developments, but it needs to be intensified in the years ahead if there’s going to be a place for everyone in Okotoks. Increased density will undoubtedly change the look of the town, but it will go a long way to maintaining the status quo from a demographic perspective.
