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Housing in Fort McMurray
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Cost of Living

Gordie

Gordie Dojillo

Godei Dojillo was working as a cook on a tanker ship when he took his sister up on a challenge to move to Canada. “She lives in Winnipeg and she was always challenging the family (from the Philippines) to come,” he says. “I had been working on ships for 15 years and I was ready for a change.”

When Godei moved to Fort McMurray he had a job as a cook with the Sawridge Inn & Convention Centre. “They took care of everything for me, arranged all of the legal matters and had staff housing for me.”

Because he worked on ships and travelled from cold to warm climates all over the world he found the move an easy one. In fact, he had spent so much time on water that he welcomed the change. “It’s been four years since I arrived and I feel very comfortable here.” 

People have the opportunity to earn high wages in Wood Buffalo. In 2011 it is projected that the average household income in Wood Buffalo will be over $177,000 a year, and that 64% of households in Wood Buffalo will have an income over $100,000. These higher incomes hedge against a higher cost of living, especially for basic needs like housing and transportation.

The estimated average income for males and females for 2011 is as follows:


Average Income *
Male
$113,726
Male (Full Time)
$133,916
Female
$47,327
Female (Full Time)
$71,759

* Source: FP Markets, 2011 Estimates

People considering moving to Fort McMurray need to think about what their income will be, what their expenses will be, and how much disposable income they will have.

A 2010 study showed that, after considering average income and the cost of living, residents of Wood Buffalo have high disposable income compared to other parts of Canada.

Household Income

In 2011 it is projected that the average household income in Wood Buffalo will be 95% higher than the projected national average—an average of over $177,000 a year. That's above the national average as well as higher than the average for Alberta. For example, the average household in Edmonton earns $99,000 per year and the average household in Calgary earns $122,000 per year. (A household is often made up of more than one wage earner.)


Household Expenses

Although wages are typically higher in Wood Buffalo, it is important to note that the cost of living, especially for housing and transportation, is also higher than in many parts of Canada. Costs in the urban centre of Fort McMurray are lower compared to costs in outlying communities.

Here are some examples of the cost differences between Fort McMurray and the rest of Alberta:

Item/Service Average cost per year
(Wood Buffalo) 		Average cost per year
(Alberta)
Food $14,569
$8,430
Shelter $26,701 $14,235
Clothing $5,472 $3,115
Transportation $21,492
$10,103
Health & Personal Care $5,930
$3,189



The Wage Gap

When thinking about how the potential for higher income compares to higher costs, it is important for people considering to move here to think about their own situation. Information about average income does not mean that everyone earns the same amount; in fact, it means that there are people earning more than average, and people earning less than the average.

While there are people who earn a lot of money and don’t have problems paying for things like housing and basic needs, not everyone in Wood Buffalo earns high wages. As in every other Canadian city, there are jobs in the area that do not pay as well and can leave workers with little disposable income after they pay for their needs. For example, service industry and retail jobs usually pay more than in other parts of the country, but it is important to consider if that higher wage will be enough to cover the cost of living, especially for households with one wage earner.

In some jobs, including some professional jobs, wages are limited by province-wide collective bargaining agreements or corporate policy. This means that not all incomes pay above average wage for that profession compared to the rest of the province, but the cost of living in Wood Buffalo will still be higher.



Housing Costs

In many communities, one of the biggest costs for families is housing, and Fort McMurray is no different.

With so many job opportunities in Wood Buffalo over the past five to ten years, many people moved to the area in a short period of time. The population of Wood Buffalo increased by 141% from 1999 to 2008. The main service area of Fort McMurray is surrounded by Crown land and therefore, there is limited land available for development where most people live. In the recent past there has been very low availability of rental housing and homes to buy, resulting in high rental and real estate costs.

Housing costs in the Urban Services Area of Fort McMurray are the highest in the province.  In 2010, the average price of a single family home was $676,000 and the average monthly rent for a one-bedroom apartment was over $1,500.  For the most accurate information regarding housing costs and rental rates, please visit Woodbuffalo.net.

The housing market has improved and rental vacancy rates have gone from less than 1% in 2008 to almost 10% in October 2010.  As more people are expected to move here, resulting from increased oil sands production, rental vacancy rates will likely drop again.

Residential developments are being built in the area to increase supply and make housing more affordable. Almost 900 homes were built in 2010, and more homes are expected to be built, meeting the needs of the workers anticipated to come to the area as a result of increasing oil sands developments. The provincial government recently released Crown land which will be available for developers to build additional housing for up to 1,000 families. Housing, including affordable housing, continues to be a priority for stakeholders in the region.

Two new areas are being developed: Parsons Creek and Saline Creek. Between them, housing for an additional 40,000 people will be made available. The first homes in Parsons Creek are expected to be ready in 2014.


Help with Housing

Subsidized and transitional housing is available to help qualifying families and individuals find shelter in the area, but the waiting period can be long. Through subsidized housing the rental rate is based solely on the family's income. There are shelter programs and temporary housing; however they do not always have space available.

Wood Buffalo Housing & Development Corporation (WBHDC) was created by the Regional Municipality of Wood Buffalo to provide residents with affordable housing alternatives in the region. WBHDC provides affordable housing to qualifying Wood Buffalo residents, from single income families to seniors and the public sector. It also helps families enter the homeownership market through its Affordable Home Ownership Program which is unique to WBHDC. These homes are not available for rent and are not for sale on the regular real estate market. They are reserved for people who work and save but still can’t afford to buy a home in Wood Buffalo. The WBHDC is developing and planning many housing communities for the next few years, that will help to bring more affordable housing to people who live in the Wood Buffalo area.