In what is really just a confirmation of something many in the city already knew, the Canada Mortgage and Housing Corporation says there are fewer properties to rent in Estevan and those few available are costing more than ever before.
The CMHC report, which was released Dec. 13, says the vacancy rate in the city has dropped to 1.3 per cent. That is down from 1.5 per cent in October 2010.
Complicating matters further is the price renters are paying. Estevan leads the way in Saskatchewan for average rent prices by a substantial margin and is among the leaders in the four categories tracked by the CMHC.
"In Saskatchewan's southeast section, the elected oil exploration activity maintained strong labour market conditions which in turn fuelled demand for rental units. Estevan's average vacancy rate of 1.3 per cent in October 2011 declined from 1.5 per cent last year," said the CHMC report.
According to the report, finding a rental property with three or more rooms is near impossible. When the data was collected in October, the vacancy rate for those properties was zero per cent.
In comparison, the rate for two bedroom properties was 1.3 per cent while one bedroom rentals have a 1.2 per cent vacancy rate. Bachelor suites are the most available of Estevan's rental stock at 3.8 per cent.
The provincial average also dropped, dipping to 1.9 per cent from 2.5 per cent last October.
Along with being the most plentiful, bachelor suites are also the cheapest of the four categories. The average price for a bachelor suite is $552, up from $517 in 2010. The average for one bedroom properties is $901 while the average for two bedrroms is $1,017. Not only is that up from $937 in 2010, it is also the highest in the province by $53. The average for a three bedroom rental also took a healthy jump, rising to $1,052 from $958 last year.
Overall, Estevan's average of $948 is by far and away the highest in Saskatchewan. The next closest is Saskatoon at $881 while Regina is third.
Elsewhere in the province there were some interesting trends. North Battleford had a year over year drop from 3.7 per cent to just one per cent but the average rental price is just $693. Moose Jaw and Yorkton joined the Battlefords region for lowest vacancy rate in the smaller centres at one per cent. The highest vacancy rate belongs to Swift Current at 6.3 per cent. Despite the high level of availability, rent increased in all four categories leading to an average increase of $35.
The announcement of Saskatchewan's dwindling vacancy rate and spiralling prices have again led to calls for government intervention by the Opposition NDP.
"Rent increases are out-of-control and finding another, more affordable home isn't much of an option when there are no units available," said David Forbes, NDP critic for housing. "This confirms that the Sask. Party government is failing in the area of affordable housing, leaving renters nowhere to turn."
However, the Sask. Party government says measures it introduced in the fall sitting of the legislature should bring some relief for renters.
The changes will force landlords to give a full year's notice of rental increases if they do not belong to an approved landlord association.
"Our government recognizes that the rental market is tight right now and we want to ensure that tenants are well protected," Justice Minister and Attorney General Don Morgan said. "These amendments will provide tenants with ample time to make arrangements, whether that means preparing for a rent increase or finding alternate accommodations."
Under the Act, if a landlord does not belong to an approved landlords' association, the mandatory period of notice for rent increases will change from six months to a full year, which is the longest length of time in Canada.
For landlords who belong to a landlords' association that is approved under the legislation, the mandatory period between rent increases will remain at the current six months. Approved associations will be named in the regulations that accompany the legislation. There is no requirement for a landlord to be a member of a landlords' association.
