The Need for Affordable Housing in Saskatoon

 

Like all major centers, particularly those undergoing economic and population growth, Saskatoon has experienced numerous challenges related to affordable housing in recent years. The supply of housing has not been able to keep pace with the growing demand for housing of all types and price ranges in Saskatoon and the surrounding areas. This has resulted in increasing prices for both new and resale homes as well as rental accommodations. Unfortunately, wage-growth has not increased at a pace that is consistent with that of the growing economy. Therefore, many people living in Saskatoon and the surrounding areas have to spend a larger portion of their income on housing.

Concerns regarding the escalating costs of housing in Saskatoon are further complicated by the shortage of affordable housing. According to the City of Saskatoon's Housing Business Plan 2008, an additional 3,500 dwelling units were needed to meet demand for housing. However, the Saskatoon Health Region's Health Disparity Report estimated the shortage of affordable housing to be closer to 5,700 dwelling units.

Finding appropriate and affordable housing has become increasingly difficult for many groups, including low income singles and families, first-time buyers, new entrants to the workforce, students and seniors on fixed incomes.

 

First-Time Buyers, New Entrants to the Workforce, and Low Income Singles and Familes

First-time buyers, new entrants to the workforce, and low income singles and families generally require either housing that is considered to be 'affordable' housing or 'entry-level' housing.

Generally speaking, a home is considered affordable if the monthly rent or payments amount to no more than 30 percent of the gross household income (as determined by the Canada Mortgage and Housing Corporation to be the limit of housing affordability). The maximum income limits (MILs), as set by the Saskatchewan Housing Corporation, are used to determine whether families or housing providers are eligible to apply for the Government of Saskatchewan's housing programs. Currently, the maximum income limit for families with dependents is $52,000 and for coups and singles without dependents the limit is $44,500. Therefore, if a family with dependents were to spend 30 percent of their annual income on housing they would be able to afford a home that costs approximately $175,000. Unfortunately, current housing options available within this price range are limited in Saskatoon.

Entry-level housing is considered to be housing that is modest is size and includes the basic features typical of what first-time buyers would purchase. Entry-level homes are usually purchased by young families and new entrants to the workforce. These homes often consist of modest resale units, apartment-style condominiums and townhouses, and homes that are generally lower in cost when compared to new or large homers. Nevertheless, many looking to purchase entry-level housing in Saskatoon are spending closer to 40 percent of their average household income in order to access the housing market.

 

Students

Saskatoon has a relatively large amount of post-secondary students and a lower-than-average campus housing-to-student ratio. For example, while the University of Saskatchewan boasts an enrollment of nearly 20,000 students, housing on-campus is limited and provides only 6 percent of these students with accommodations. This percentage is well below the national university average of 15 percent. In addition, the Saskatchewan Institute of Applied Science and Technology (SIAST) does not have any student housing available for those enrolled. The low amount of student housing in Saskatoon means that more students have to seek accommodations through the traditional housing market. In general, many full-time students have a limited amount of income at their disposal as many work part-time jobs and finance their studies with the assistance of student loans. For the student population, even marginal increases in rental prices can place a significant strain on their budgets.

 

Seniors with Limited or Fixed-Incomes

Research indicates that while seniors currently comprise 13 percent of Saskatoon's population, this demographic is forecasted to increase nearly 23 percent by the year 2026. Moreover, the Canada Mortgage and Housing Corporation (CMHC) has stated that the population of senior citizens living in Canada will continue to grow at a pace quicker than other demographic sectors. In Housing for Older Canadians: The Definitive Guide to the Over-55 Market, CMHC stated that between 1991 and 2031 the portion of people over the age of 65 is expected to increase from 1 in 9 persons to 1 in 4 persons. This growing number of senior citizens will continue to bring about a corresponding demand for seniors housing in our communities.

Seniors on a fixed-income are at a unique disadvantage in quickly escalating housing markets. Simply stated, when the price of rents increase their fixed-income remains the same, making it incredibly difficult for them to adjust to the increased costs. Furthermore, the Government of Saskatchewan's Task Force on Housing Affordability indicated that while seniors would often like to move to more suitable locations, there is a lack of appropriate accomodations available to meet their needs.

 

Immigrants and Newcomers to Saskatoon

Saskatoon has become a popular and desirable destination for interprovincial migration as well as for new immigrants and refugees seeking a new community to call home. Immigration to Saskatchewan has increased approximately 67 percent since 2005, with 44 percent of newcomers choosing to make Saskatoon their home. The Government of Saskatchewan believes that our province will attract an additional 7,000 to 10,000 immigrants and refugees over the next two-years through the Saskatchewan Immigrant Nominee Program (SNIP). Based on immigration statistics to date, Saskatoon is predicted to attract approximately 3,100 to 4,400 of these individuals.

Unfortunately, the need for adequate housing for this population has been largely unfilled. For example, the 2001 Census of Canada demonstrated that 14 percent of 16,900 immigrants in Saskatoon were living in crowded conditions, with more recent data reporting that this number had increased to 30 percent. The Census also reported that 14 percent of recent immigrants were paying 50 percent or more of their annual household income on housing. This is significant as housing affordability is generally considered to cost 30 percent of a family's annual household income.