After pacing the country in rent increases over the past few years, Saskatchewan is seeing a decline in rent prices. A report from listing website Rentals.ca says the average asking rent price in Saskatchewan fell modestly last month by 1.1 per cent, led by Regina, where average prices decreased by nearly two per cent. “After years of increase, Saskatchewan rents are finally on their way down, which is a really good thing for renters, especially because it’s most likely going to continue throughout the fall and winter,” Giacomo Ladas, the associate director at Rentals.ca, said. The relief for renters comes after asking rent in Saskatchewan increased by 19 per cent over the past three years. In Saskatoon, one-bedroom rents are down 6.9 per cent compared to this time last year. Ladas says after years of being an outlier compared to many other places in the country, Saskatoon and Saskatchewan are joining the national trend of declining rent prices. Ladas says that’s largely due to lower immigration and higher youth unemployment rates over the past year. He says those two factors combined with a jolt of housing startups have increased supply and helped drive lower prices. “As we move into the new year, I don’t see any scenario where we’re going to see a huge increase in youth employment rates. And it looks like we are still going to, for at least for the near future, see a little bit of a lower immigration,” Ladas said. “So, I do think it’s going to become a more favourable market in Saskatchewan and especially Saskatoon.” Two-bedroom units in Saskatoon are down 2.7 per cent year over year, compared to a 3.1 per cent decline in Regina. According to Rentals.ca, average rent in Saskatoon is $1,534, with one-bedroom units averaging just under $1,300. In Regina, average rent is $1,463, with one-bedroom units being listed for slightly less than in Saskatoon. While these decreases are a welcome sight for renters, they are having an impact on landlords across the province grappling with the changes. “Housing starts have reached record numbers,” Landon Field, CEO of Rental Housing Saskatchewan, said. “What that results in is more options for renters, more housing supply, and people can actually feel like they can take their time and choose where they want to live, rather than it being kind of a fight for a waitlist.” Field says vacancy rates in some places were less than one per cent coming out of the pandemic. Now, vacancy rates are creeping closer to five per cent, with Saskatoon currently seeing a 3.3 per cent vacancy rate, while Regina is at 2.7 per cent, according to Canada Mortgage and Housing Corporation’s latest figures. Rather than renters competing against one another, now landlords are competing to keep renters. “Landlords are now having to focus on retention and service, and some cases, amenities,” Field said. “What can they actually do to retain their residents and also, keep up with the costs that are definitely increasing for operations.” While Saskatchewan was late to experience the decline in rent seen in many other parts of the country the past two years, it remains to be seen how long the lower prices will last. In October, the average asking rent in Canada declined 3.2 per cent year-over-year, marking the 25th consecutive month of annual rent decreases, according to Rentals.ca. However, it’s the smallest annual decline since February. In Toronto and Vancouver, apartment and condo rents rose modestly for the first time in more than two and a half years. Field and Ladas say Saskatchewan, and Canada as a whole, need to focus efforts on building more three-bedroom and affordable housing units as the housing supply begins to catch up with years of demands calling for more housing inventory. “We need to continue to say yes, and continue to build more, but build more of the right kind of housing that people are looking for,” Field said.
