What Does It Really Cost to Live in Banff? A New Calculation Will Put a Number on It

How much does it really cost to live and work in the mountains? For the first time, the Alberta Living Wage Network (ALWN) is calculating exactly how much residents need to earn per hour to cover basic living expenses in Banff, Alberta.  

Described as an organization that has dedicated itself to developing “a standard methodology for calculating living wages across the province,” The ALWN works with local businesses and their communities to better understand the needs of workers across the province. 

The number, expected to be released Nov. 9, will give Banff employers and workers a local benchmark based on the cost of housing, food, transportation, child care and other necessities. 

It will not be a mandatory wage increase. Instead, businesses will be able to use the rate voluntarily and apply to become certified living wage employers.

Healthy Bow Valley is leading the local calculation after roughly two years of groundwork, according to Dr. Vamini Selvanandan, the physician lead for the organization. 

"Income is really that foundational piece that then goes on to affect housing and food security and transportation and child care," Selvanandan told Bow Valley Insider.

She said the work grew out of what she and other health-care providers see locally: residents seeking care for physical and mental health problems that can begin with financial strain, inadequate food or crowded housing.

"A lot of Bow Valley residents come seeking medical care for problems that have their origins in social problems… In a lot of these - housing, food security, child care - they all have to be built on a base of adequate income."

Why Banff needs its own number

ALWN’s living wage is different from Alberta's $15-an-hour minimum wage, which is a legal requirement and applies across the province. 

The living wage is a voluntary, community-specific estimate of what a worker needs to earn while working 35 hours a week to afford a modest standard of living, which includes food, clothing and shelter, as well as child care, a small amount for education, community participation and unexpected expenses.

In addition to this, the network’s current method also produces a weighted average based on three household types: two-parent families, one-parent families and single adults. 

For this reason, Banff cannot simply adopt Canmore's last published rate of $38.80 an hour. 

That figure was calculated in 2023, and costs and community supports have changed since then. Local conditions also matter: Banff has free local transit, a large number of collective dwellings such as staff accommodation, and a mix of employer benefits that may affect the calculation.

How it works

Healthy Bow Valley is leading the work locally, but calculating a living wage requires information and participation from across the community.

Employees, employers, community organizations, the towns or cities, and the residents make up what they call “the affordability puzzle.” 

"People are engaged. They are willing to come and they're willing to learn first, and then to contribute their expertise and their data into making this calculation as good as possible," she said.

For Banff’s calculation specifically, the local working group has included employers, tourism and business organizations, a union representative, non-profits, service providers and a Town of Banff representative. 

The Town is participating, but it is not sponsoring or leading the calculation, Selvanandan told us, further explaining the role that everyone plays. 

"The network doesn't do the calculation for you. The local person does it, but they give you all the technical expertise, like an economist and a coordinator," Selvanandan explained.

Healthy Bow Valley's role is rooted in public health. During a webinar for local businesses, Selvanandan shared that she believes financial strain affects more than a person's bank account.

"When people are under financial strain, when they cannot afford nutritious food, or when they're working multiple jobs and still falling behind, their physical and mental health suffers." 

"When enough people in the community are struggling in that way, the whole community feels it."

The Alberta Living Wage Network, meanwhile, is the organization employers contact if they want their compensation reviewed and their business certified.

Certification is based on total compensation, not necessarily the hourly wage alone. Health and dental coverage and other benefits that directly reduce the cost of basic needs may count. Tips can be included when an employer tracks the customary amount and tops up an employee if their earnings fall below the living wage threshold.

The rate still applies to seasonal positions. The network's presentation says the calculation does not make an employer responsible for a worker's lack of hours in the off-season; it establishes the hourly compensation needed for the hours they do work.

Jesse Kitteridge, founder of Moraine Lake Bus Company, shared that paying more has paid off.

During the webinar, Kitteridge said his company has paid a living wage since it began operating four years ago.

The company employs about 55 seasonal workers and five year-round staff, most of which are bus drivers, and start at roughly $33 an hour, then generally earn closer to $43 an hour once bonuses are included.

"Somewhat selfishly, my business does better, and I am much happier when I invest in my employees," Kitteridge continued. "I would rather have a good income and a thriving business with protected, valued employees than a slightly larger income or fancier car and unhappy, struggling employees."

His experience mirrors the broader case made in the Alberta Living Wage Network's presentation, which points to reduced turnover and training costs, stronger recruitment, improved morale and productivity, and a better employer reputation as potential benefits. 

Those outcomes are not guaranteed for every business, but Kitteridge thinks they have been central to his company's growth.

So what happens next?

According to Dr. Selvanandan, the calculation will be reviewed and checked before the Banff rate is made public on Nov. 9. 

Once released, it will provide a clearer picture of local affordability and give employers a path to certification.

It may also give local governments and community groups more precise information for decisions about housing, child care, transportation, workforce development and affordability programs.

The presentation notes that 29 percent of Banff residents who filed taxes in 2023 earned between $20,000 and $39,999 that year. The living wage calculation will not show what every Banff resident personally needs, but it will estimate the average hourly compensation required across the household types in the model.

Of course, calculating the rate is only the first step.

"Once we get the calculation, then that's the beginning of the action… What are the actions that each of us can take to make sure that a living wage becomes a reality in Banff?"