The Saskatoon Housing Market

Housing can be described on a continuum. At one end are those individuals and families experiencing absolute homelessness. At the other end are those individuals and families who are able to meet their housing needs without assistance. In the middle is a range of low and moderate-income households, many of which are living paycheque to paycheque and find it difficult to secure adequate housing. For these individuals, a lack of affordable housing options can create a lower standard of living.

 

Housing Prices

During the past five years, housing affordability has decreased significantly in Saskatoon. The price of resale housing nearly doubled from 2006 ($160,453) to 2010 ($296,378), while average household incomes have risen at a considerably lower rate (+18%) .

Rising costs of materials and labour has increased the cost of newly constructed housing as well, with an entry level price of approximately $300,000 for a single family home, and average new home prices exceeding $385,000. 

At these prices levels, entry level and average resale housing in Saskatoon requires an annual household income of approximately $75,000. According to RBC's Affordability Report, Saskatonians are now paying over thirty per cent of their gross annual income on housing costs. Thirty per cent of gross income is used as a general guideline for estimating affordability of housing.

These conditions exist because there is a very high demand for market housing. Between 2006 and 2010, the Saskatoon CMA population increased 15 per cent from 230,300 to 265,300 (+35,000). During the same time period, approximately 10,000 housing units were built in the region. The majority of these units are owner occupied with few new rental units being created.  

In a recently released International Housing Affordability Survey, Saskatoon's housing market was reported to be "seriously unaffordable." The survey indicated that it would take 4.6 years of a median income to purchase the average home in Saskatoon. This is a significant increase over the 2.6 years required in 2006, and the 3.5 years needed in 2007. It is also higher than the Canadian average of 3.5 years and is almost on par with Calgary and Toronto's housing affordability rating of 4.8 years.

 

Rental Prices and Vacancy Rates

Rental affordability has been declining as well. From 2006 to 2010, the supply of purpose-built rental apartment units declined 16 per cent from 15,171 to 12,577 (-2,594), and the average monthly rent for a two bedroom apartment rose from $608 to $950-a 56 per cent increase . As noted earlier, the median household income increased by 18 per cent. Growth in the cost of rental housing is outstripping growth in household income.