If they come, we will build it  

By Carol Todoruk, For L-P Specialty Products December 31, 2011  

It wouldn't be the first time Hollywood got it backwards. The fact is, these days in Saskatchewan, it's our growing population that's building homes of dreams across the province.

The Canada Mortgage and Housing Corporation (CMHC) reports that new home construction in Regina, and Saskatchewan is, in total, on the rise.

In Regina, CMHC said there were 879 single detached new construction starts in the first 11 months of the year-a whopping 35 per cent increase from the same period last year. Multi-family unit construction also increased, with 651 new starts between January and November this year-a 17 per cent increase over the same months in 2010.

What's even more significant, according to Michael Fabiyi, the senior market analyst for CMHC in Saskatchewan, is that the multifamily starts are the highest they've been since 1983, and the 879 single detached starts is the second highest level since 1987. "This is very significant," Fabiyi said. "The Regina housing market is doing very well compared to other parts of the country, which haven't seen that kind of growth, but have even seen reductions in some areas.

Fabiyi said the strong housing market extends across the province, showing significant growth over the past two and a half years. He credits this to the increase in population that has been lured here by the strong economy, and resultant increase in investment and employment opportunities that the province has seen in the last few years. "It is directly linked back to job growth, in terms of what's happening in the economy here, and from the investment stream into the province- all leading to population growth." he said.

According to a Government of Saskatchewan news release, the province's population hit a new all-time high of 1,057,884 people this past July, growing by more than 5,000 people since April. That includes net inter-provincial migration of 1,239 and net international migration of 2,681.

Many of those coming from other provinces hailed from Alberta. "That's a complete reversal from as recently as 2006, when more than 5,000 people left the province; many of them heading to Alberta to take advantage of the opportunities available there at that time," said Fabiyi. Now, many of them are coming back, and their need for housing is spurring the growth in the market. "What's crucial is the fact that this is all directly related to on-going population gains. What's more impressive is the increase in population is responding to the vibrant economy," he said.

That driving factor can be expected to continue into the future, with the Royal Bank of Canada (RBC) predicting that Saskatchewan will lead the nation in economic growth until 2013. According to an RBC report, provincial gross domestic product (GDP) is expected to rise by 4.5 per cent in 2011, 4.2 per cent in 2012 and 4.7 per cent in 2013.

And, the RBC report also states that the Saskatchewan housing market will continue to be strong for the next few years. The report predicts we'll see 7,600 new housing units in 2012 and 7,900 in 2013, which would be the highest annual tally since 1979. Fabiyi makes the same prediction, expecting the provincial and city of Regina housing market strength to continue for the next two years, at least. "It's because people are choosing to move here to take advantage of the jobs and economic opportunity," he said.

With all of the housing product available, and with both federal and provincial governments offering tax credits for first-time home buyers (the provincial program will be effective Jan. 1, with details in the spring budget), home dreams can become reality.
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