Why is rent in the boonies so high?

. ._ · Post by **. ._** » Thu Sep 08, 2005 1:03 am

This is a bent on the Sioux Lookout thread here.

From what I've read on here in the last few years, rent is really high, and rental units hard to come by in many northern towns. Fort St. John comes to mind, but there are others.

Doesn't the marketplace pick up the slack in the north? Or do standard housing economic models not apply?

I mean, how could a business person not make a killing by slamming a $15,000 piece of crap trailer on on a piece of cleared bush and charge $400 a month? This would alleviate some housing shortages, would it not?

Of course, when I do a road trip next spring, or the next, or the next, maybe this will make sense.

Oh bush livers of AvCanada. Make me wise.

(Because like I've said before. I don't know shit- yet.)

-istp

. . · Post by **. .** » Thu Sep 08, 2005 1:15 am

why wait till next spring for a road trip? God knows what's gonna happen between now and spring. The industry is good now, I'd certianly take advantage of that.

VeRmiLLioN · Post by **VeRmiLLioN** » Thu Sep 08, 2005 4:27 am

Lack of Supply and plenty of Demand.

groundtoflightdeck · Post by **groundtoflightdeck** » Thu Sep 08, 2005 5:45 am

I noticed that across Canada rent prices are somewhat steady, where real estate prices fluctuate much more. In some of the smaller places like YXL or wherever I would imagine buying might be a better value when planning to stay over 1-2 yrs. Otherwise you spend a lot in rent and have no equity when you leave, where the mortgage will be the same or lower. But who knows, thats what I'm trying... ask me in 2 years if it worked;)

wallypilot · Post by **wallypilot** » Thu Sep 08, 2005 7:24 am

FSJ is in a bit of an oil boom, hence lots of people coming into town, so high rent. It's all about supply/demand, as others have already stated. Plain and simple.

. ._ · Post by **. ._** » Thu Sep 08, 2005 7:53 am

endless wrote:why wait till next spring for a road trip?

Because I'm flat broke.

To the others, sure I understand supply and demand. What puzzles me is why supply hasn't caught up to demand if it is so high. Maybe I should have clarified that.

Isn't if funny that all of the penniless people like myself have all of the get rich schemes?

-istp

. ._ · Post by **. ._** » Thu Sep 08, 2005 7:54 am

Oh yeah, I forgot. Anyone need a 230 hour pilot to fly their plane? PM me.

-istp

gelbisch · Post by **gelbisch** » Thu Sep 08, 2005 8:40 am

I can only speak for Sioux Lookout, but I think it's just 'cause there's a high percentage of the population that's transient. A lot of pilots work around there, and they need a place to live. I think there are quite a few doctors/dentists/nurses as well, passing through or on their way north. There are a lot of Yanks in the summer... probably not many renting, but who knows, maybe some more kids come into town to work because of it?

All I know is when I got there I certainly didn't plan on staying (five years later!) and I didn't have the money nor inclination to buy. In hindsight it'd probably have been a good idea... but you know what they say about hindsight!

If you're single, live in the crew house. (If they haven't been knocked down yet!!) It sucks, but it's cheap and you can stumble your way up the hill to work. I think I was only putting like 5000 kms a year on my car... and that was with FREQUENT trips to Thunder Bay.

Good ol' YXL! <<shudder>>

Hickory Stick · Post by **Hickory Stick** » Thu Sep 08, 2005 7:39 pm

Simple answer: ITS A NAZI TOWN RUN BY THE FOUNDING FATHERS

Founding Fathers is the term used to describe the founding families that own almost all the realestate and business in YXL.

If you control the market, you can set your own prices, and limit growth to keep prices artificially high.

My two cents worth.

Cheers

. . · Post by **. .** » Thu Sep 08, 2005 7:54 pm

I had heard the YXL problem was due to lack of capacity with the sewage system. They couldn't put in new places because they would froce the town to build a new station which they couldn't afford.

TopperHarley · Post by **TopperHarley** » Sat Sep 10, 2005 8:36 am

Another way to look at it is from another perspective- if the supply of potential home renters is less than reliable (I'm not trying to sound stereotypical here, but many people from the north tend to lack credibility), then landlords will increase the rent, attracting only people with good paying jobs.

There's always low income housing though, and that's the route I took. It's nice paying only $135/month in rent, but it really sucks living in the "ghetto" of a nothern city.

just curious · Post by **just curious** » Sat Sep 10, 2005 9:30 am

Most Northern Locales (anyplace starting in Fort, or ending in Lake, Ik, Ak, or Uk) have all the parcels of land within the town boundaries either developed, or sold long ago. In order to expand, they have to Annex land parcels from adjacent townships counties or landclaims groups or petition the provincial or territorial government ot release Crown Land.

Swapping parcels of land is government's least favorite activity.

Unless you have a developer who has a plan for development of a parcel with at least 100 units, and who has funding (north of 60 costs $200 psf), then you are unlikely to the town push for annexation.

Meanwhile, there is alway someone who will pay.

Kernal Klink · Post by **Kernal Klink** » Sun Sep 11, 2005 9:25 am

YRL isn't to sh!t hot for renting either. We (our seasonal staff) arrive here in early May only to find that most of the rental houses/apts have been snatched up by the fire crews and miners. This year we HAD to settle on a 1/2 finished piece of crap home with your typical Northwestern ontario siding job (ie: tyvek).
Cost to rent: $1500/month
bedrooms: 3
If anyone is thinking about renting in Red, I suggest you get here around Early to Mid April.