With the number of lots sold and building permits issued in Whitehorse shooting way up, the city may have to brace for a space crunch.

That's the opinion of Mayor Ernie Bourassa, who said this morning if the city wasn't able to come up with additional lots, housing prices could continue to skyrocket and newcomers to the city won't have a place to live.

'There's going to be a lot shortage. The main reason that we want to work on the Porter Creek development is that we need to have lots for at least two years.

'We need the Porter Creek development, otherwise we're looking at a lot shortage,' Bourassa said.

According to the city planning department, there are now only 12 lots available for sale in the city. There will be 60 more lots coming online later this month and 110 coming up for sale in October 2006.

But official numbers indicate that if the demand remains the same next year, the city could run out of lots as early as next May.

According to information from the YTG Department of Energy, Mines and Resources, the department which keeps lot sale records, the number of lot sales in 2005 nearly exceeds those sold in the last two years combined.

According to department records for the spring and summer of 2005, there were 29 lots sold in April, 31 lots sold in May, eight lots sold in June, one lot was sold in July, 44 lots were sold in August and one lot sold in September.

In 2004 those numbers were significantly less with nine lots being sold in September, seven lots being sold in May, 10 lots being sold in June, eight lots being sold in July, August saw 13 lots sold and September saw 12.

According to the Yukon Bureau of Statistics, the average price of a house in Whitehorse jumped to $214,000 in the first quarter of this year, up $23,000 from the first quarter of last year.

Last month, senior city planner Mike Gau said there are now more houses in Whitehorse valued above $250,000 than there are below that price.

According to the most recent City of Whitehorse Building Activity Report, there were more building permits issued in September of this year than September of this last year.

According to the report, there were 261 permits issued in September of this year, including 189 single family residences, three commercial, six government, nine woodstoves and 45 plumbing, compared with 144 in the same month last year.

The report also shows that there have been more permits issued by September of this year, 985, than all of last year, which came in at 978.

Bourassa said he felt an obligation to ensure lot availability for anyone who wanted one.

'Our responsibility is to make sure there are lots available for people at a reasonable price,' he said.

City planning manager Lesley Cabott said she felt there would be a continuing high demand for housing due to population growth and economic factors.

'We've had a population increase of about 800 people. The economy is strong and interest rates are low.'

She also said there has been investment from both inside and outside the Yukon.