It is certainly cyclical but once again Okotoks has a zero vacancy rate for rental properties, but it is an issue government can help resolve long-term.
The Alberta government needs to partner with municipalities to promote construction of affordable rental properties in communities where they are needed and develop more strict guidelines for rent
controls.
For the first time since the boom in 2007 there is a housing crunch in Okotoks.
There are almost zero apartments in town available and what rentals are available are seeing significant increases in monthly rent.
For example, one Okotoks senior said her rent is going up $300 per month from $850 to $1,150 — an increase of 35 per cent.
On one hand this may be a positive sign the local economy is rebounding, but on the other hand this causes a real problem for the community.
High rents, or no rentals at all, means young people wanting to live and work in Okotoks often have to look elsewhere because they cannot find an apartment or they cannot afford the rent. As a result, business owners have a difficult time filling job openings and not just in the traditionally lower paying hospitality and service industries.
The rent crisis also has a substantial impact on the other end of the generation gap. Seniors who are on fixed incomes will be hard pressed to afford rent increases, meaning they can be forced from their homes and their communities in search for more affordable housing.
There are limited rent controls in Alberta. Landlords can raise rents only once a year, but there is no limit on the amount of the increase. They can increase rents to whatever the market will bear.
The provincial government should look at putting a limit on the amount rents can be increased perhaps tie it to the rate of inflation.
In addition, the Town of Okotoks is limited to what it can do to legislate the amount of rental development in the community. Town administration can only set land designation for housing in new developments such as stating how much space must be for multi-family housing. It cannot force a developer to build rental apartments rather than more lucrative
condominiums.
The Town should be able to have more input in development. For example, stipulate a certain percentage of a condo complex be set aside as rentals.
Okotoks needs diversified housing to ensure a young vibrant community.
