CANMORE – A median assessed residential home in Canmore is now more than $1 million.
The landmark number outlines the significantly increased assessed value of property in the mountain community in recent years as council nears approving its final property tax rates for 2024.
A staff report to Canmore’s committee of the whole, it adds a single-detached home – including duplexes, triplexes and fourplexes – have a median assessment of $1.383 million, while a condo has a median assessment of $761,000.
Canmore Mayor Sean Krausert said it’s indicative of the housing situation in the community, but also stresses the priority of non-market housing that’s badly needed for residents.
“The average person cannot obtain housing of that value, so it’s really important that we create as much non-market housing as possible,” he said. “That median value also tells us private development of market housing, while important, will not solve our housing crisis. Through those developments, we’ll get some non-market housing in periods of time, but [we’re] focused on controlling what we can control and that’s creating as much non-market housing in the coming years in the lands the Town or [Canmore Community Housing] own.”
Canmore council passed the Palliser Trail area structure plan late in 2023, which at full buildout would add more than 1,000 units of affordable housing.
Council gave first reading to redesignate an existing direct control district in Palliser for the development of four- and six-storey apartment buildings. A public hearing, with a potential second and third reading, will take place in May.
The next affordable housing project to come online is in Stewart Creek, which had the Canmore Planning Commission approve minor variances for an 18-unit with more than 50 bedrooms go-ahead.
The CCH-project will begin construction in the coming weeks.
The assessed residential households in Canmore have continued to shoot up in costs. In 2021, the median assessed residential home was $772,000 and went to $800,000 in 2022. A significant jump saw it go to $969,000 last year and another leap took it to $1.043 million this year.
“We’re seeing the continued increase in property values in Canmore. While assessed values aren’t market values, they certainly trending in the same direction,” Krausert said. “Over the last three years, the cumulative assessed increase for residents has been about 39 per cent. That is a massive increase. It truly shows how difficult it is to obtain affordable housing when the median is over a $1 million.”
A median assessed home, however, doesn’t necessarily reflect what a home may fetch on the open market, but rather, what it’s appraised at by the Town’s independent assessor Benchmark Assessments Consultants Inc.
The assessor completes the work separate from the Town, with properties assessed and taxed based on the economic condition as of July 1 and the condition as of Dec. 31, 2023.
Krausert noted he had a meeting with Municipal Affairs Minister Ric McIver April 8 and is set to meet provincial housing minister Jason Nixon – who was critical of Canmore, particularly in denying and fighting against an appeal brought by Three Sisters Mountain Village Properties Limited for two area structure plans – on April 22.
In addition to the meeting, Krausert said he plans to send a letter to all provincially elected officials to give context and information on Canmore’s housing scenario “because I do believe there’s a widespread misunderstanding as to what our housing crisis is in Canmore and what it’ll take to solve it.”
For now, however, a home valued at $1.043 million would see an annual municipal tax bill increase of $150 or $12.53 per month.
The data could change due if property assessments are appealed up until April 22, but would depend on if any are successful.
Chelsey Gibbons, the Town’s manager of finance, said as of April 15 eight appeals had been filed. She noted the majority come closer to the deadline.
Council is scheduled to pass the tax rate May 7, with notices set to be mailed out May 17, which is now at 2.04 for residential and 6.27 for non-residential.
Council approved the 2024 budget last December, with the operating budget coming in at $77 million. The municipal tax requisition was approved at $34.88 million for a 7.6 per cent from 2023.
A significant jump in the provincially-approved education tax – 23 per cent to $30.378 million for Canmore residents – will see the property owners overall tax bill climb.
In Alberta, a municipality has no say in the education tax, but is required to collect it on behalf of the province. It can often lead to confusion of a taxpayer believing a municipality establishes the levy, but a municipal government is only the go-between in the money getting from property owners to the province.
The provincial education tax kept the 2023-24 mill rates, but due to increased property assessment growth will have an extra 9.2 per cent in revenue collected. The 23 per cent increase in education tax in Canmore represents a jump of $5.6 million for a total of $30.35 million.
“Per the 2024 education property tax requisition comparison report released by the province, Canmore had one of the highest year-over-year percentage change increases in the requisition among municipalities,” stated the staff report.
Canmore also collects for vital homes, seniors housing and designated industrial property requisition on behalf of the province.
The Town will collect $1.6 million for seniors’ levy – determined by Bow Valley Regional Housing – for a four per cent (64,471) increase from 2023 and designated industrial property requisition will be $4,597. Vital homes collection makes up $450,000.
For every tax dollar collected, $0.51 is for municipal purposes, $0.02 is for seniors’ housing and the remaining $0.45 goes to the province for education.
“Canmore has stayed constant over the last number of years, with residential properties comprising about 85 per cent of the Town’s total assessment value and generating 65 per cent of the municipal tax levy while non-residential properties comprising of 15 per cent of the Town’s total assessment value and generating 35 per cent of the municipal tax levy,” stated the report.
A municipal tax increase of 7.2 and 3.2 per cent are forecasted for 2025 and 2026, respectively. A one per cent increase or decrease represents about $320,000.
The municipal tax split for Canmore is 65 per cent coming from residential and 35 per cent non-residential, meaning $22.6 million in municipal taxes will come from residential and $12.3 million from non-residential.
Once a municipal tax rate is set by council, it’s used to determine the taxes owed by each property owner based off the assessed value.
Canmore has a total taxable assessment base of $11.85 billion following a $1.17 billion jump from 2023. The bulk – $9.92 billion – are residential. The median assessed residential home in Canmore is $1.04 million.
The average residential assessed home increased by 8.3 per cent, which represents a $15.67 municipal tax increase per $100,000 in assessed value.
Non-residential properties had an average assessed change in value of 15.4 per cent or $45.21 in municipal tax increase per $100,000 in assessed value.
The MGA stipulates a non-residential to residential is a 5:1 mill rate ratio, with Canmore coming well under at mill rate ratio of 3.06:1.
Krausert ultimately emphasized the need of non-market housing to support Canmore’s residents and workforce.
“The high price of land and high cost of housing pretty much means market housing is not the solution for the average person, so we need to have housing here that is not needed in other places and that’s non-market housing.”
2024 TAX ASSESSMENTS (2023 FIGURES IN BRACKETS)
- Residential: $9.24 billion ($8.46 billion) – 9,196 rolls
- Tourist homes: $$481 million ($428 million) – 638 rolls
- Tourist homes personal use: $59.39 million (70.92 million) – 76 rolls
- Vacant, serviced: $138.72 million ($67.72 million) – 129 rolls
- Non-residential: $1.87 billion ($1.6 billion) – 2,370 rolls
- Machinery and equipment: $$57.08 million ($54.81 million) – 22 rolls
- Total: $11.85 billion ($10.68 billion) – 12,431 rolls
- *The number of tourist homes for commercial and residential use can change each year, depending on the property owner declaring a change in use.*
MEDIAN ASSESSMENTS
Residential
- 2023: $969,000
- 2024: $1.043 million
Tourist home
- 2023: $670,000
- 2024: $686,000
Tourist home personal use
- 2023: $686,000
- 2024: $687,500
Vacant serviced
- 2023: $874,000
- 2024: $1.114 million