Fort McMurrays Real Estate Blog

 

Housing type, household size and housing ownership

The majority of the population lives in single family dwellings, which accounts for 84% of the housing mix. Mobile homes account for 15% and a small proportion of the population resides in multifamily housing types (0.4%), which include apartments, hotel units, senior housing, and college residences.

The Urban Service Area (Fort McMurray) has either an equal or higher than average number of people per housing unit when compared to the rest of Wood Buffaloix. The average number of people per housing unit in Wood Buffalo varies depending on the housing type. There is an average of 3.3 persons per unit in a single family dwelling compared to 2.8 in a townhouse and 2.3 in an apartment. Comparatively, the average persons per household in Alberta are 2.6, and 2.5 in Canadax. In the Urban Service Area (Fort McMurray), 76% of housing units are owned and 24% are rented, which is lower than the Regional averagesxi. Homeownership in Fort McMurray has been increasing since 1999, where 64% of units were owned. In comparison to the Regional average, home ownership has been increasing since 1999, but at a faster pace than in the Urban Service Area (Fort McMurray). Rental accommodation within the Urban Service Area (Fort McMurray) is offered in all housing types. The housing situation is somewhat unique within Fort McMurray, as there are a large number of people who are considered "shadow population". Shadow population is defined as any person who is present in the community but has a permanent residence elsewhere. This person resides in the community for a minimum of 30 days or on a seasonal basis and is employed or has been employed by an industrial or commercial establishment in the municipalityxii. In addition to the individuals that reside within rental accommodations, 1,778 individuals reside within hotels or motels, and 523 individuals live in campgrounds.

Housing prices continue to rise

House prices have been growing at a pace well above incomes, creating stressed affordability conditions. According to the Canadian Mortgage and Housing Corporation CMHC), housing costs should not exceed 30% of before-tax household income. In Wood Buffalo, where the average salary is $27/hour, housing affordability is concerning for many families. People who do not work in the petroleum industry may have even greater difficulties finding affordable housingxiii. Strong employment and population growth in the region, along with development constraints and low vacancy rates has made housing within the Urban Service Area (Fort McMurray) one of the most expensive in the province. As of November 2007, the average price of a single family home was $582,012, a multi-family home was $362,021, a duplex $435,314 and a mobile home on an owned lot averaged  $362,235. These housing prices represent a significant rise in housing prices since 1995 461% since 1995. Multi-family homes have risen 620%, where duplexes have increased in value by 595%. The largest change can be seen from mobile homes. These prices have changed from $30,125 in 1995, representing an 1102% increase.

Fort McMurray needs more affordable housing

 

Within the RMWB, affordable housing units are provided and maintained by the Wood Buffalo Housing & Development Corporation (WBHDC). Unit type can include shelters, apartments, townhouses, duplexes, and senior housing. During the writing this report, no information was available regarding availability of future units. There is a potential for future units to be developed, however, current costs prohibit further development in proposed and developing subdivisions. The following identifies affordable housing in the Urban Service Area (Fort McMurray).

Affordable Housing in the Urban Service

Area (Fort McMurray) Affordable Housing Buildings Capacity

 

Evergreen Village            50 - single family dwelling units
Marshall House Shelter    for 108 individuals
Horizon View                  110 - apartments
                                    20 - townhouses
Edgewater Court              25 - townhouses (3-4 bedroom)
                                    55 - apartment units
Prairie View                    12 - townhouses
Venture Terrace              40 - duplex homes (3 bedroom)
Meadow Creek Village
                                   Building A - 52 unit apartment, 
                                   Building B- 53 unit apartment
Delta                            57 townhouses
Creekside                     36 townhouses
Prospect View                50 apartment units
                                   40 townhouses

Homelessness in the Urban Service Area (Fort McMurray)

 Homelessness is going to be an increasing concern in the region as housing prices continue to escalate. In 2006, the homeless population has increased by 24% since 2004. Fort McMurray has the highest number of homeless people (441) per 65,000 population compared with the five major Alberta citiesxiv. Homelessness is a particular concern to the First Nation communityxv. Current reality of housing in Fort McMurray. There is significant pressure to keep up with the demand for housing to accommodate the growing population, which will include permanent long-term employees, temporary workers, and the local population. This is particularly important as housing prices rise. Affordability is of concern and as such construction is starting to focus on multifamily dwellings. Based upon the Urban Service Area (Fort McMurray) target population of 245,446 and the average persons per household (single family dwellings), 74,378 homes, or 3,234 per year, would be needed to meet the housing demand. The following identifies the number of homes that would be required based on the average persons per household in varying housing types. This projection embodies several assumptions. (1) The population will grow at 9% until 2012, 6% from 2012 to 2018 and 4% between 2018 and 2030; (2) Fort McMurray's average household size would remain constant at 3.3 persons per household for Single Family Dwelling, 2.8 persons per household for Townhouses, 2.3 persons per household for Apartments, 2.9 persons per household for Manufactured Homes, 2.7 persons per household for duplexes, and 3.0 persons per household for semi-detached homes; and (3) a 0% vacancy rate is applied.

Additional housing units to meet the target population

Housing Type                Number of Homes                    Homes per Year

Single Family Dwelling             54,850                                2,385
Townhouse                            95,266                                4,142
Apartment                             78,698                                3,422
Manufactured Homes              62,416                                2,713
Duplex                                  72,402                                3,148
Semi-Detached                       60,335                               2,623

 This information was copied from the Envision Report issued May 2008 and can viewed in is whole at http://www.envisionwoodbuffalo.ca/communities/May_submission/FortMcMurrayBackgroundReport.pdf

 www.McMurraysBestHomes.com

 

 

Trends

The Urban Service Area (Fort McMurray) is experiencing modest growth rates

Between 1999 and 2006, population growth in the Urban Service Area (Fort McMurray) nearly doubled from 36,452 to 61,366i. In the same time period, population growth in the Regional Municipality of Wood Buffalo (RMWB) inclusive of shadow population has increased from 42,847 to 76,735. Sustained population growth in the Region, including the Urban Service Area (Fort McMurray) has largely been the result of interest in oil sands investment. Growth in the oil sands industry has created a strong demand for jobs, resulting in an increase in migration. This trend will continue through the operation and maintenance of existing projects and as new sites are developed and constructed. 

Historical population in the Urban Service Area (Fort McMurray) by area from 1999 - 2006 shows that considerable growth has been concentrated in Gregoire, Lower Townsite, Thickwood Heights, and Timberlea. In contrast, Beacon Hill and Waterways has experienced very little growth.

The Urban Service Area (Fort McMurray) will continue to experience modest growth

The RMWB has forecasted growth to 245,446 residents in the next 25 year period in the Urban Service Area (Fort McMurray) by the year 2030. Based upon the forecasted growth of 245,446 this would require a 9% growth rate from 2007 to 2013, a 6% growth rate from 2013 to 2019 and a 4% growth rate from 2013 to 2030.

The population is young

 

A review of the age distribution in the Urban Service Area (Fort McMurray) shows that it is comparable to the Region as a whole. The population of the Urban Service Area (Fort McMurray) includes 27% under the age of nineteen, 71% between the ages of 20 and 64 and 2% over 65ii. The Urban Service Area (Fort McMurray) population under the age of 19 is equal to the average for Wood Buffalo as a whole, where 28% of the population is under 19. The percentage of adults in the Urban Service Area (Fort McMurray) between the ages of 20 and 64 is higher than the average for the Region (70%). However the proportion of seniors is equal to the average for Wood Buffalo where 2% are over 65[2]. The ratio between males and females in the Urban Service Area (Fort McMurray) has changed slightly since 2000. In 2000, 54% were male and 46% were female, compared to 2006 where males accounted for 55% and females 45%. This ratio includes all the areas within the Urban Service Area (Fort McMurray). Waterways and the Lower Townsite represent the areas that have the largest difference between the male and female populations. This could be attributed to the fact that these are the older areas within the Urban Service Area (Fort McMurray), whereas much of the new construction has taken place in Timberlea. In addition, the Lower Townsite has the largest number of apartments, so the percentage of males may be higher, as many single males live in Fort McMurray.

This information was taken from the Envision Report issued in May 2008 and can be viewed at http://www.envisionwoodbuffalo.ca/communities/May_submission/FortMcMurrayBackgroundReport.pdf

www.McMurraysBestHomes.com

 

We have the energy. That is what the sign says as you entry town from the south on hiway 63. And we sure do have, estimated to be able to supply the worlds yearly consumption for the next 100 years. With four oil companies at different stages of new expansions or completly new site just starting construction, the demand for housing in Fort McMurray is not going away anytime soon.

Currently we have more homes on the market then we have seen in a few years, I believe a lot of these homes are from people that moved to town from Eastern Canada that are cashing out to move back to the Rock. Thinking that they may continue to work here and commute back.

Fort McMurray has thousands of people that have homes in other parts of both Alberta and Canada that come here to work on site for their shift and fligh or drive home for the weekends. It is these people that makes Fort McMurray a GREAT place to invest in Real Estate with the average rent for a funished bedroom going for $1000 per month.

Within the next couple of years it is estimated that the oilsand construction is going to require 45,000 tradesmen to keep up with construction. Seeing the jumps in prices Fort McMurray witnessed the last time there was a big push in construction a couple of years back, were the total numbers of tradesmen was around 20,000.

www.McMurraysBestHomes.com