Thank you, Mr. Speaker. We are in the midst of a welcome increase in our economy in the Northwest Territories and the good things that come with it: jobs, investment, long-term hope and stability as we work toward becoming a have Territory. However, along with that, Mr. Speaker, come the negative consequences of a boom economy and the demands it is putting on our already limited infrastructure. This is not news. We knew it was coming and one of the earliest signals we are getting is the pressure on the cost of living. I am particularly concerned about the trend in rental accommodation developing in Yellowknife.
In the last two years, we have seen vacancy rates drop from 11 percent to 2.5 percent. A quick survey of some landlords shows that, at this time, rents are increasing from three percent to in some cases over 20 percent as businesses move to capture fuel costs that are up some 70 percent and take advantage of demand in a market that has not seen rent increases in more than a decade.
Along with the increasing work force, the rental shortage is compounded by the conversion of rental units to condominiums and executive suites.
Mr. Speaker, in Yellowknife, we are facing a serious situation. The impact on low-income families being squeezed out and having fewer and fewer choices is of particular alarm. Mr. Speaker, my colleague from Inuvik Boot Lake has similar stories where a one-bedroom apartment is now $1,000 a month, a 25 percent increase in the past year.
While developers need to cover their costs and make a fair return on their investment, the trends are cause to examine the situation at various levels of government. Let me make it clear, Mr. Speaker. In saying this, I oppose anything that looks like rent controls. The free rules of supply and demand are firmly established here and I do not believe they should be interfered with. However, I also feel our government has as much responsibility to manage both the good and the bad sides of economic growth. My message, Mr. Speaker, is that our municipal governments, our territorial government, landlords, developers, lenders and the Canada Mortgage and Housing Corporation need to collectively work together to balance our housing situation. We have also got something to gain and lose by how we manage this. I will be asking the Minister responsible for the Housing Corporation questions related to this. Thank you, Mr. Speaker.
-- Applause