NWT program to subsidize rents highlights perennial cost-of-living issue in Canada’s North

Most Canadians know it's expensive to maintain the True North part of our national character.

Living North of 60 is a pricy proposition; Just look at this list of typical living costs in Yellowknife, N.W.T.

The territorial government is recognizing the financial squeeze on residents with a new program to help those paying one third of their income or more on rent.

The Northwest Territories Housing Corporation plans to pay up to $500 towards rent under a new Transitional Rent Supplement Program, CBC News reports.

To qualify, renters must be over age 19 and earn less than $70,000 if living in Yellowknife — the cutoff varies depending on location. The corporation will pay the money directly to the landlord for up to two years, CBC News said. People paying mortgages are not eligible.

With an average rent of $1,500 a month for a two-bedroom apartment, Yellowknife last year was the second most expensive city in Canada, according to the Canada Mortgage and Housing Corp.

Only Iqaluit, capital of Nunavut, was more expensive at $2,200 a month, about a thousand dollars more than even pricy Vancouver, CBC News reported.

[ Related: Northerners blast high prices for basic foods, including $20 for jug of milk ]

Nunavut Housing Corp. subsidizes 80 per cent of the eastern-most northern territory's accommodation, according to a report in Nunatsiaq News last May. The territory is developing a program to address the shortage of adequate housing.

By comparison, the median monthly rent in Whitehorse as of last June was $875, with a two-bedroom unit's median rent around $900, according to the Yukon Bureau of Statistics.

The high cost of housing and the scarcity in some places highlight the challenges of living in the North, which will likely only increase if climate change opens the region to resource development.

For instance, a report last month by the Conference Board of Canada's Centre for the North, targeted northern Internet and phone service, which is slower, less reliable and — surprise — costs more than anywhere else in Canada, according to CBC News.

Northern Canadians (including those living in the northern parts of provinces) pay an average $139 a month for a basket of telecom services, with Nunavut residents paying the most at $171. The report recommends several measures to improve service, as well as subsidies for home Internet and phone service, which the board said would boost development of the North's knowledge-based economy.

[ Related: Cost of living rises most in North, StatsCan finds ]

Food costs remain a perennial problem, especially for fresh meat, fruits and vegetables.

Auditor-General Michael Ferguson agreed in July to investigate the impact of changes to federal food subsidies on prices, the Globe and Mail reported. Under a storm of criticism, the Conservative government revamped its subsidy program and rebranded Nutrition North Canada, transferring the subsidy to retailers instead of shippers and expecting stores to pass on the savings to consumers.

It also narrowed the list of foods eligible for the subsidy to put more emphasis on fresh, healthy products, the Globe said.

While the costs of some products appear to have declined, the overall tab remains high and critics say retailers are receiving massive profits.

Back in Yellowknife, the rent-subsidy program, which the government says is aimed at those making too much money to qualify for low-income housing but not enough to make ends meet, so far has had few takers.

The program is capped at 150 people but only 63 have applied. The territorial housing corporation eventually expects 600 applicants, CBC News said.