Housing prices in Airdrie may rise due to city of Calgary fee increase
Housing prices in Airdrie may rise due to fee hikes implemented by the City of Calgary.
Our neighbour to the south, is increasing what they charge for water and sewer services to surrounding communities due to recent upgrades of infrastructure of Calgary facilities.
Single-family homes sold in Airdrie in the second quarter of 2013 saw a benchmark price of $350,200, according to the Calgary Real Estate Board (CREB), a 6.6 per cent increase over the same period in 2012. That number will rise due to fee increases by close to $2000.
Airdrie Mayor Peter Brown said the fee had been issued prematurely, as a cost of servicing report had not yet been issued.
“They’re estimating the cost of servicing our community,” Brown said. “We need more details as to what the capital contributions are and where that money has been spent and how – we need answers to those questions.”
Developers will see fees increase per hectare in new areas like King’s Heights around $46,000 in 2013 and $48,000 in 2014.
The charges will be implemented in a separate rate so that it will be absorbed only by new developments, and not in user rates, which would be paid for by everyone in the community.
“Calgary is charging us more for services, but according to what I’ve read they haven’t necessarily broken up how they’ve come up with the cost,” said Chris Mulders, a realtor based in Airdrie.
“I don’t know if it’ll slow (the market) that much, but it could definitely affect what people can afford.”
Brown said time would tell how the fee increase would affect the housing market in Airdrie.
“I don’t know specifically if it’ll affect it negatively or positively – I think we’re very competitive with other communities,” he said. “I would say that Airdrie is worth the amount, personally.”