John Streicker, the minister of Community Services, was quizzed on the high price of Yukon land on Monday in the legislature.

NDP MLA Liz Hanson accused the government of selling lots at market value, worsening the escalating cost of housing.

“Instead of lots priced according to the development costs, they go for market value,” Hanson said.

“With demand for available lots exceeding supply, prices will only continue to rise.”

Hanson said the least expensive lot available in Whitehorse is currently priced at $227,000 before taxes.

She questioned the government’s choice to sell some lots to the highest bidder, driving up prices, as reported by the Star during the past summer.

Hanson spoke in particular of one lot, which sold for a price $23,000 higher than the government’s minimum bid.

“In a housing market that is already overheated –– due in no small part to the government’s ad hoc approach to development and release of lots suitable for a range of affordable housing options –– we echo an editorial comment from last June…

“What justification is there for government authored-escalation of lot prices in the current environment, and does the government intend to continue down that path?”

Streicker disagreed that his government is working in an “ad hoc” manner. He sung the praises of its increased investment in lot development.

“Our objective is to strike a fine balance in maintaining a healthy supply of lot inventory in both Whitehorse and rural communities while not adversely affecting the current market,” Streicker said.

Later, speaking to reporters, Streicker said $42 million has been invested in lot development, and there are plans to create a surplus in the market.

“Our goal is to have a two-year supply of lots in all communities,” Streicker said.

“You want to have a supply of lots. The reason you want that supply is because if you don’t, it starts pushing prices up.”

Liberal MLA Ted Adel tabled a motion in the house Monday urging the government to create a supply of land banks in communities, with the purpose of keeping prices low.

Streicker said that multiple communities, in addition to Whitehorse, will be included in the plan for lot development.

“We need lots all across the territory, whether we are talking Watson Lake or we’re talking Dawson,” Streicker said.

“There is a demand, and it’s both for residential lots and for commercial lots, so what that tells you is the economy is really hot right now in the territory. There’s a lot of growth, and that’s pressure on all of our communities.”

Streicker refuted Hanson’s claim that lots are consistently sold at market price, versus the development cost.

He said the development cost and the market price act as “bookmarks” for lot pricing.

In some instances, particularly in communities, the development cost was actually higher than the market price, he said.

The government’s policy allowed for either the development cost or the market price to be listed, to create flexibility in choosing the lower price.

Another priority for the government is to provide land in multiple sizes to “encourage the construction of smaller, more affordable homes,” he told the house.

As an example, Streicker referenced the new lots in Whistle Bend, which range from duplexes to townhouses. The least expensive of those cost approximately $60,000.

“When considering the price of lots, we look at development costs and market values and base decisions on both the current market conditions and the cost of development and recovery,” Streicker said.