The Tourism Labour Task Force commissioned a study to examine tourism workforce housing issues in South Georgian Bay with a view to defining key issues and identifying ways that the private and public sectors can collaborate across the region on innovative approaches to improve the supply of attainable housing.
The communities of South Georgian Bay are facing a similar situation. In 2016, the median household income in the region was $67,762, an increase of 12% since 2011. However, the average price for a single-family home increased 34% over the same period to $433,000. In 2017 prices rose an additional 18% year-over-year to nearly $512,000. At this price, (assuming a 20% down payment) a qualifying household income of about $121,000 is required, almost double the region’s median income.
Those employed in South Georgian Bay, at local wages, are left to compete with buyers and renters with significantly higher incomes. The effect is to undermine the viability of local businesses that depend on this workforce. In the fall of 2017, a labour shortage of over 800 tourism-related positions was estimated across Bruce, Grey, and Simcoe Counties. Based on local income levels, over 2,000 households are potentially facing housing challenges.
This study involved over 25 interviews and more than 500 surveys with employers and members of the labour force who confirmed the critical shortage of labour and the challenges of attracting staff without housing.
It concludes with a broad set of recommendations but are all framed around the need for a partnership between the employers, the development community, and the public sector.
Specific recommendations related to two potential initial projects are included. These projects could be the product of a request for proposal (RFP) process, sponsored by a municipality in partnership with the employers group. The project proposals include;
- i) An employee dormitory style development designed to properly house entry-level workers who tend to be more transient. This type of project could also be utilized to house Georgian College students, helping the school to improve their appeal to prospective students; and,
- ii) A condominium apartment building designed to accommodate full-time individuals, couples, and families.
The study also includes conceptual development proformas for these projects to illustrate their financial feasibility of with and without a set of possible incentives. The analysis suggests that either project is viable with increasing affordability as incentives are applied.
A link to the full report is Available Here