With only three residential lots left in Whitehorse, builders are in for a financial hit and housing prices will jump even further, warn city and building officials.

Wayne Cunningham, president of the Yukon Homebuilders' Association, said today with only three lots left in the city until this fall, contractors are preparing for difficult times next spring.

'It's going to be tough on us,' he said in an interview. 'Everybody has enough lots to get through until this September, but new lots likely won't be available until October.'

Lots purchased in October would be difficult to get ready for the spring of 2007, he explained.

'Housing prices will likely go up by another 15 or 20 per cent,' he said.

Compounding the problem, Cunningham added, is the fact there are no more major subdivisions that would become available until 2010 or beyond.

According to Mark Roberts, a Department of Energy, Mines and Resources (EMR) spokesperson, the city's lot inventory is set to run out.

'I've checked with the lands branch; there are only three lots left for sale over the counter,' he said earlier this week.

EMR is the territorial government department which owns Crown land, including within municipal boundaries, in the Yukon.

Under the government's (YTG's) current development process, the YTG is responsible for subdivision planning and lot development and sales while the city holds the responsibility for zoning.

Lots are sold by the Department of Community Services on a cost recovery basis.

The two levels of government are currently discussing a land development protocol which would make the city responsible for subdivision design and zoning approval while leaving the territory responsible for lot development.

The protocol has yet to pass through cabinet or receive official approval from the city.

Community Services spokesperson Doug Caldwell said earlier this week there will be more lots available in the city later this year, but likely not until fall.

'There will be another 105 lots in Copper Ridge this fall,' Caldwell said.

'Whitehorse Copper will have 110 country residential lots.'

Whitehorse Copper, located across from the Meadow Lakes Golf and Country Club, Caldwell said, will also likely be released this fall.

Mayor Ernie Bourassa said this morning that while the city will likely have enough homes for sale in the short term, housing prices will likely start jumping again by next year as residential lots in the city become scarce.

'There's no question that this will drive up housing prices,' he said.

'We've been trying to get lots out in Porter Creek only to be frustrated by the process,' he said.

Last fall, the city unveiled plans for 280-plus lots to be developed in the Porter Creek greenbelt near McIntyre Creek.

The plans became stalled when it was revealed that there were other interests in the area, including:

• Yukon Electrical Co. Ltd., which holds a water licence in the area;

• Yukon College, which was promised the area as endowment lands; and

• the Yukon government, which was considering having the entire area protected.

The city held public consultation meetings last fall on the proposal. The YTG held public consultations on the area earlier this year.

The government, Caldwell said, is preparing to go out for another round of public consultations on the property.

Bourassa said he's disappointed with the way the government has handled the process and feels the city's proposed development is being stalled for little or no reason.

The territorial election that must be held this year, Bourassa said, is likely affecting the process.

'This is more than likely being affected by the election ... every vote counts.'