Builders, realtors say Saskatoon housing market is falling behind as population booms

Saskatoon estimates that its population grew by more than 14,000 residents last year, and some experts say the city's housing sector is struggling to keep up.

Builders and the Saskatchewan Realtors Association say they are concerned about the rapid increase in demand and that there isn't enough support from the government to build more housing efficiently.

"Just getting everything approved at the city level is causing delays that are unnecessary," Matthieu Desourdis, a contractor in Saskatoon, said.

He said business is booming and there are a lot of people coming to Saskatchewan, but dealing with all the red tape is making construction difficult.

Saskatchewan Realtors Association CEO Chris Guérette said the housing crisis is not new, but was exacerbated by the pandemic.

"People who are struggling for housing right now or appropriate housing to meet their needs can't wait any longer," Guérette said.

She added that rents have been rising because there has been an increasing pressure on inventory. Guérette wants to see all levels of government working together to make sure housing can be built quickly and effectively.

Nicole Burgess, CEO of Saskatoon and Region Home Builders Association, said that about 2,600 units were built in Saskatoon in 2023. That doesn't meet the shortfall, but was above the 10-year average for the city.

The Canada Mortgage and Housing Corporation estimated in a 2023 report that Saskatchewan will have a supply gap of 60,000 homes by 2030, based on current trends in need and builds. Across Canada, the estimated gap by 2030 is about 3.5 million.

"What this means is that we're going to have to double our housing starts over the next few years just to meet demand and maintain affordability," Burgess said.

She said the provincial PST rebate program for homeowners has been helpful, but that removing PST on all housing, as was the case many years ago, would expedite the construction of homes.

Burgess also said government fees associated with new homes, including construction, labour and cost of materials, play an important role in the cost.

Saskatoon Mayor Charlie Clark said the city is working on speeding up housing supply. That includes changing zoning to increase density and applying for federal money.

Clark estimated that there were 3,000 housing starts during last year's population boom, but experts say that is still not enough to keep up with the demand.