The housing crunch faced at all levels in many parts of the province is not going away, and the industry needs policy changes to advance building, a coalition of industry groups says. According to the groups, the province needs between 60,000 and 80,000 new homes by 2030 (a number agreed upon by Canada Mortgage and Housing Corp.); and two-thirds of Saskatchewanians see housing as a top priority for the province. In their view, the growth and need for more housing will continue. “If you look at the reports from the federal government and economists across the country, Saskatchewan has got a very bright future right now,” said Stu Niebergall, CEO of the Regina & Region Home Builders’ Association, who came up to Saskatoon for a news conference.
“We are the one province that will continue to be forecasted to have positive growth, positive population growth, and continue to lead the nation in positive immigration as well.” The Regina association joined the Saskatoon and Region Home Builders’ Association (SRHBA), the Saskatchewan Realtors® Association (SRA) and the Saskatchewan Landlord Association (SLA) in producing a document entitled Secure Homes, Strong Future.
The groups form the Saskatchewan Housing Continuum Network. Cameron Choquette, CEO of the SLA, said 600 new units were completed in Saskatoon between January and June this year. Using 2023 population numbers, 13,000 to 14,000 people moved to the city. If half of that number moved in by the end of June, that meant 5,000 to 6,000 people for about a 10th the number of units.
“That’s the imbalance the four of us and our associations are trying to illustrate, that demand is outpacing supply in a serious way. And that’s why we’ve put forward these recommendations to increase supply in any way that we can.” He added that the associations represent various organizations from not-for-profit housing providers as well as for-profit, so affordable housing policy was also considered. “As we continue to see the size of the family grow in Saskatchewan through immigration, the demand for one bedroom and bachelor suites in Saskatchewan Housing Corporation units is significantly less than the need for three, four and five-bedroom units.”
Chris Guérette, CEO of the SRA, said resale home inventory in Saskatoon and Regina is at about two months’ supply and it has been in that range “for a very long time.” “Yet we continue to have above average sales as well. That continued pressure is there,” she said. “We’re also seeing the erosion of affordability that is starting to slowly creep into the province, and not just in our two major cities but also in communities like Moose Jaw and smaller communities around Saskatoon and Regina.” There are several reasons for underbuilding, including a shortage of labour, high construction and materials costs, policy issues and red tape, said Nicole Burgess, CEO of the SRHBA. “We have an acute housing shortage and it’s getting worse. We need to be really doubling housing starts over the next few years and we’re nowhere near there. “We’re producing the same level of housing starts we have for the last two years and we need to be doubling it.”
Some of the network’s proposals are:
• Reduce the PST from six to four per cent on all new construction, while maintaining the present rebate on homes priced at under $550,000 (the number does not include land.)
• Reinstate the Home Renovation Tax Credit. The credit was in place for two years after the COVID lockdown year to spur economic activity, providing up to $2,100 in credit on up to $20,000 in eligible renovation expenses.
• Make the Secondary Suite Incentive (SSI) permanent. This incentive offers grants of up to 35 per cent to construct suites in a homeowner’s primary residence.
• Delay the implementation of the third tier of the National Building Code by at least one year. Saskatchewan builders must presently build to Tier 2 levels. The network says few provinces are even at Tier 2, and the code “introduces escalating costs.”
• Audit underused government properties for affordable housing.
• Provide provincial support for infill projects.
• Establish a ministry of housing and infrastructure.
• Enhance efficiency and accessibility in resolving rental housing disputes.
For the entire list of suggested policy changes and details, go to: https:// saskatchewanrealtorsassociation. ca/saskatchewans-housing-leaderslaunch-housing-blueprint-ahead-ofprovincial-election/ and click on the embedded link for the report.
The network members provided the document to the provincial government in mid-September.
– Joanne Paulson
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