Rents in Regina, Saskatoon expected to increase slightly in 2020: report
Rent in Regina and Saskatoon could slightly increase as vacancy rates slowly decrease, according to Canada Mortgage and Housing Corporation's January Rental Market Report for both cities.
Regina is still recovering from slower economic activity brought on by changes in commodity price volatility, according to Taylor Pardy, senior analyst with the CMHC.
The purpose-built apartment vacancy rate in Regina was virtually unchanged in the past year — it was 7.7 per cent in October 2018 and 7.8 per cent in October 2019 — though the report says this is still high compared to the majority of Canadian metropolitan areas.
The 2020 Rental Market Predictions and Insights from Rentals.ca forecasts that the vacancy rate may drop in the next few years to 7.3 per cent in 2020 and 6.6 per cent in 2021. As a result, rent may stabilize and potentially increase in 2020. Rent declined 0.2 per cent in 2019.
"Barring a more rapid improvement in economic conditions, improvements in the rental market in the Regina CMA are likely to be gradual," Pardy said in the Rentals.ca report.
Vacancy drops for third year in a row in Saskatoon
Saskatoon's vacancy rates dropped more than the most metropolitan areas but is still higher than most cities, according to the CMHC report.
The vacancy rate in Saskatoon went from 8.3 per cent in October 2018 to 5.7 per cent in October, 2019. The report said it marks the third year in a row that vacancy rates have moved lower. A population increase has contributed to the lower vacancy rates.
Goodson Mwale, senior analyst with the Canadian Mortgage and Housing Corporation, told Rentals.ca that average rental rates may increase as vacancy lowers.
The report also noted that there were more than 500 rental apartments under construction in the city at the end of 2019, which may slow the decline in the vacancy rate.
If you're looking for a place to rent in Saskatoon, you may want to consider look for vacant units. The CMHC report noted that vacant units had a lower average asking rent than occupied units in 2019.
