Dire shortage of housing

A city housing needs report paints a bleak picture of the future of home ownership for most Nelsonites.

Researched and written by Makola Development Services, the City of Nelson Housing Needs Report delved into the economic climate of housing — both rental and home ownership — in the Heritage city.

Recognizing the nature of the housing market in the city, the availability of new data, and the necessity for updated housing reports, the city commissioned the update — building upon the first housing needs report in 2020 — in response to new legislation and the changing housing landscape.

Like many other Canadian communities, Nelson is grappling with escalating housing pressures and rising housing costs, the report’s executive summary noted.

“Without significant external support or existing equity, home ownership is out of reach for most households in Nelson,” the report explained in the ‘Key Findings’ section. “Only households earning more than $150,000 a year can reasonably expect to afford to own a home.

“In 2021, only about 15 per cent of households earned more than $150,000. The median household in Nelson earned $72,500 before-tax.”

Climbing costs, population growth

Nelson’s total population grew five per cent and total number of households grew seven per cent between 2016 and 2021.

“Similar growth trends should continue over the next two decades,” the report noted.

Projections expect there to be about 15,470 residents in Nelson by 2041 and over 17,000 by 2050.

“Growth has historically been, and should continue to be, greatest among senior age cohorts, though all age groups and household types should grow over the foreseeable future,” the report read.

Growth also took place in the cost of accommodations, with the median cost of an apartment increasing 22 per cent between 2020 to 2023, more than 50 per cent faster than the rate of growth between 2017 to 2020.

Since 2014, Nelson’s rental vacancy rate has been between zero and 0.5 per cent.

“A ‘healthy’ vacancy rate is generally considered to be between 3-5 per cent. Competition and demand for rentals is extremely high,” the report read.

The median home sale price rose 36 per cent between 2019 and 2022. The median single-detached house sold for approximately $700,000 in Nelson in 2022.