The Yukon's economy and growing population are driving the demand for housing in the territory, says Carol Freketich, regional economist with the Canada Mortgage and Housing Corp. (CMHC).

'You need to have the growth in the economy and the growth in jobs to facilitate the new building of homes,' Freketich said.

She was among several representatives from the CMHC in Whitehorse this morning to present economic and demographic factors expected to affect the Yukon's housing market in 2006.

The territory's economy is connected to commodity prices and interest rates, and, as a result, the Yukon's economy actually out-performed Canada's in 2004, the gathering heard.

The amount of construction, exploration and mining are also driving the economy. As those numbers go up, the unemployment rate is stabilizing, the number of Yukoners employed has risen by two per cent and work hours are lengthening, said Freketich.

With the improving job markets, more people are moving to the Yukon, she said.

In 2004, 400 people relocated to the territory, putting the Yukon's growth rate at 2.5 per cent, one of the highest in Canada, the conference was told.

This is creating a population-driven demand for housing, added Freketich, and the economic outlook is positive for the rest of 2005.

There is some slowing expected in 2006 due to spiralling prices in oil and gasoline having an overall impact on the economy.

'The Yukon is seeing growth in the population, so there is that population-driven demand. The continued outlook for low interest rates, that's going to help people access housing,' she said.

The current demand for building permits for single-family dwellings is 'to the point it's almost scary,' said Allyn Lyon, director of the community and industry development branch of the Yukon Housing Corp.

Since July 2004, almost 750 individuals have moved to the Yukon and have begun looking for housing he said.

Lower interest rates have triggered even more interest in purchasing or building a home rather than renting, Lyon added.

With the intensified demand for housing, there needs to be some explanation regarding the availability of land, which could be a long process through city council.

The current value of housing sales is going off the charts, Lyon said, and bidding wars are occurring on the homes in the market.

However, he added, the market may be starting to slow down. Sales are down slightly from where they were last year.

'Some of the buying frenzy is starting to be satisfied,' he said.

Beyond the dropping number of available lots and community protest at the thought of 'infill' such as building homes in current greenbelts Yukoners' lack of interest in buying anything but single-family dwellings compromises the issue of home availability, Lyon suggested.

The construction of triplexes, duplexes and condos are decreasing, because the demand for them simply isn't there, said Lyon.

As well, there has been a historic trend in the Yukon where condos were seen as low-income housing and the homeowners who occupy them don't seem to move that often, he added.

The activity in Whitehorse demands the city look at lots, and though officials are, there is continued controversy, he noted.

'It's an ongoing process that's going to take a lot of time and energy.'

Lyon added with just under 200 lots still available in the Copper Ridge area of Whitehorse, there is some reason for concern about future building and housing demands in the territory.

Also, with the cost of local houses having risen by 31.1 per cent since 1999, there are concerns that with the current mortgage rates and climbing heating costs, there may be Yukoners walking away from their homes in the future, he added.