Report Warns Banff "Affordable" Homes Could Average $2.1M in 10 Years

Banff residents could soon help shape the future of one of the Banff Housing Corporation's (BHC) affordable homeownership programs after council voted to seek public feedback on proposed changes designed to keep homes affordable for future buyers.

BHC is the Town of Banff's non-profit affordable housing agency, managing below-market rental homes and affordable homeownership programs for eligible Banff residents.

An independent review by N. Barry Lyon Consultants found prices in one of BHC's affordable homeownership programs are rising much faster than local incomes.

Under the program, known as the equity-share program, homeowners buy most of a home's value while BHC retains a financial stake to help keep homes more affordable than similar homes on the open market.

If nothing changes, the report warns the average sale price of an equity-share home could climb from about $750,000 today to roughly $2.1 million within the next decade. Even if prices rise at a slower pace of 5% a year, the average price would still reach about $1.3 million.

BHC currently manages 216 ownership homes, including 161 equity-share units. Its Registered Resale List had grown to 530 applicants by the end of 2025, with 162 new ownership applications submitted during the year.

"We have heard over the years that getting into the fair market value portfolio is becoming increasingly unattainable for folks," Mayor Corrie DiManno said during the June 23 shareholder meeting.

How Banff's ownership program works

BHC sells below-market homes in two different ways, both designed to keep homes more affordable than similar homes on the open market.

Under one model, called the price-restricted program, a home's resale price can increase by no more than 2% each year. Under the equity-share program, homeowners buy between about 65 and 87% of a home's value while BHC keeps the rest. When the home is sold, the owner's share rises or falls with the market.

Because those homes increase in value along with the broader housing market, they have become more expensive than homes in the price-restricted program. The report estimates someone buying an equity-share home from the waitlist would pay about $650,000 on average, compared with about $447,000 for a home in the price-restricted program.

Why council is looking at changes

The report found home prices in the program have increased by about 10% a year over the past five years, while local incomes have grown by only about 3% annually.

The consultants concluded that if those trends continue, more Banff residents will struggle to afford a home. Many are already spending a larger share of their income on housing, sharing homes with others, waiting for housing through BHC or their employer, or leaving the community altogether. The report also found the shortage of affordable housing is making it harder for local businesses to attract and keep employees.

DiManno said the findings reflect concerns council has been hearing from residents for years.

She said there had been hope the Tatanga Ridge Benchlands project would create more affordable homes through a mix of price-restricted townhomes and rental apartments. But with that project no longer considered viable, she said it makes sense to focus on BHC's existing homes and look for new ways to help more people buy a home in Banff.

"We know that the sweet spot is that $600,000 to $700,000 price value and currently those are really hard to come by," she said. "I think it makes sense to evaluate what we can do with our current portfolio."

What could change

One proposal would change how BHC decides what homes in its equity-share program are worth when they are sold.

The review found several homes in the program sold for much more than the values used to calculate property taxes. For example, one Sundance Court home sold for nearly $994,000, about 24% above its assessed value, while a home on Sulphur Court sold for more than $1 million, about 9% above its 2024 assessed value.

Another proposal would introduce a two-year pilot program giving first-time homebuyers a better chance of buying a home when one becomes available.

A third proposal would explore creating a program that would allow BHC to buy back certain homes in the equity-share program. It would apply to homes where BHC already owns at least a 25% share or where the purchase price is $700,000 or less.

Public input comes next

Officials said hearing from current homeowners, people on the ownership waitlist and the broader community will be critical before deciding whether any changes should move ahead.

“Some of these ideas are definitely out of the box, and creative. I think it’s worthwhile to have a conversation with the community about if it’s the right fit for us,” said Dimanno.

Coun. Kaylee Ram, chair of the Banff Housing Corporation board, said it was important that the portfolio review was completed by an independent third party.

"I also think it was really important that it was a third-party portfolio review," she said. "I'm really looking forward to the public engagement and the feedback that's received because we're thinking both short term and long term about the future for housing for families."

BHC will now undertake public engagement before returning to council in the first quarter of 2027 with engagement findings, recommendations and implementation options. Details about how residents will be able to participate have not yet been announced.