Saskatchewan’s housing market is encountering unique challenges along with broader Canadian housing trends. As a result, key housing leaders, including the Saskatoon & Region Home Builders’ Association, Regina & Region Home Builders’ Association, Saskatchewan Landlord Association, and Saskatchewan REALTORS® Association, have created “Secure Homes, Strong Future: A Housing Policy Blueprint for Saskatchewan,” to propose solutions. This comprehensive plan was announced this September 2024, just ahead of the provincial election.
Saskatchewan’s residential real estate sector has been grappling with a significant supply gap as the province continues to experience growth in population and employment. The current market dynamics with the increase in demand for affordable rental units are affecting buyers, investors, and builders alike. The ongoing housing shortage and higher construction costs present a complex environment, and as the population grows, the need for more housing becomes increasingly urgent.
The blueprint noted key challenges to be addressed.
Rental Market Pressures
The rental market in Saskatchewan has experienced heightened demand due to a surge in immigration and a growing population of younger households. Vacancy rates have decreased, pushing up rent prices, particularly in major cities like Regina and Saskatoon. Affordable rental housing remains in short supply, and with new construction unable to keep pace, renters face increased competition for available units.
There are also concerns about the efficiency and accessibility of landlord-tenant dispute resolution and the challenges landlords face in managing rent arrears, property damage, and tenant disputes.
A common issue is the difficulty landlords encounter in recovering unpaid rent or property damage costs due to tenants not providing forwarding addresses after vacating. Without this information, legal recourse is limited, and many landlords are left absorbing these losses. This problem, combined with rising costs to maintain rental properties, has created a less favourable environment for rental housing providers, discouraging investment in the sector and contributing to the overall shortage of affordable rental units.
Interest Rates and Housing Supply
Like the rest of Canada, Saskatchewan has been impacted by elevated interest rates, which have cooled demand for home buying while increasing the financial burden on home builders. Higher borrowing costs affect both the affordability of new homes and the ability of developers to finance projects, contributing to a tightening supply of available properties.
Rising Construction Costs
In addition to financing challenges, the province’s housing sector has seen construction costs soar, primarily driven by the rising price of materials, labor shortages, and supply chain disruptions. This has placed additional strain on developers who are already contending with narrow profit margins.
Proposed Solutions
The blueprint emphasizes collaboration across sectors and recommends a four-pronged approach to tackling the housing crisis.
Supporting Rental Housing Providers and Protecting Tenants
Of particular interest to landlords and real estate investors, the plan advocates for improving dispute resolution mechanisms between tenants and landlords, as well as strengthening systems for collecting rent arrears and damage claims.
The blueprint proposes strengthening mechanisms for collecting rent arrears and property damage claims. This would include improving efficiency in tenant-landlord dispute resolution processes, potentially through reforms to Saskatchewan’s Office of Residential Tenancies (ORT). By streamlining dispute resolution and ensuring landlords have better tools to recover unpaid rent and damages, the blueprint aims to create a more balanced and fair rental market. These measures are designed to protect landlords while also ensuring tenants are treated fairly, ultimately encouraging further investment in rental housing and alleviating some of the strain on the province’s rental supply.
Enhancing Affordability and Reducing Housing Costs
The blueprint proposed policy measures such as adjusting the Provincial Sales Tax (PST) for affordable home construction and making the Secondary Suite Incentive (SSI) Program permanent. These steps aim to lower overall housing costs, incentivize construction, and make homeownership more attainable.
Building More Homes Faster
One of the key proposals is conducting an audit of underutilized government properties to identify opportunities for affordable housing development. Additionally, provincial support for infill projects and housing-enabling infrastructure is seen as essential to accelerate the construction of new homes.
Stronger Provincial Leadership on Housing
The blueprint recommends the creation of a dedicated Provincial Ministry of Housing and Infrastructure. This body would coordinate efforts between various stakeholders, ensuring that housing remains a priority in provincial planning.
Implications
The next few years will be critical in shaping how the province meets its housing needs. By addressing affordability, reducing construction costs, and streamlining development processes, the proposals seek to make the market more accessible for both private and institutional investors. However, much will depend on the political climate following the provincial election, as the blueprint’s recommendations will require strong legislative and financial backing.
More detailed information is available in the full report.
As part of its response to Canada’s ongoing housing challenges, the federal government has added another 12 new properties to the Canada Public Land Bank,...
As part of its response to Canada’s ongoing housing challenges, the federal government has added another 12 new properties to the Canada Public Land Bank,...
