REGINA - With Regina being one of the more affordable cities to live in Canada, the city will likely see another spike in average rent heading into next year, according to a rental expert.
Giacomo Ladas of Rentals.ca noted Saskatchewan is currently facing a rent situation similar to Alberta's during the pandemic.
“[Saskatchewan] is essentially the newer version of Alberta because Alberta was the province where that was happening at the beginning of COVID, where it was much more affordable to live there. And then everyone went to Alberta.”
Ladas added Alberta had a calling campaign across the country encouraging people to move to the province. However, since the demand is so high now, the supply of apartments cannot meet the needs of the people.
Over the last year, Regina alone has seen an over 15 per cent increase in one-bedroom apartments, while two-bedroom apartments have increased by over 12 per cent.
Currently, the average rent for a one-bedroom in Regina is $1,329. According to Ladas, most renters will not list their apartments for less than the average market value.
Because of the soaring costs, more people are renting three-bedroom apartments where they share living spaces rather than rent out a one-bedroom apartment. One-bedroom apartments used to make up 50 to 60 per cent of the demand for the renting market, but those numbers have drastically shrunk, said Ladas.
The soaring costs have also made people use a larger portion of their income. The rule for renting was 30 per cent of your income goes to one's monthly rent. Ladas said that is now very difficult to manage.
With the current state of affordability, tenants are not moving from one property to a new one. Instead, they stay in the same one for a long period.
Ladas believes rent prices will probably increase over the next few years but admitted he is unsure of how much it could be due to the rental market constantly shifting.
For example, Calgary saw double-digit year-over-year rental increases in February. Six months later, the city is now seeing a year-over-year decrease.
While it is possible the rent prices can go down in Regina without fully knowing what will happen next, Ladas said it's not likely.
On a positive note, Ladas admitted the recent interest rate decrease could help with the rental market. He noted it costs a lot of money for developers to build rental spaces that are at affordable prices. If those prices go down, developers can list rental spaces for cheaper.
He also believes whoever wins the next federal election will focus on making housing more affordable based on the party's ensuring housing will be a focus.
As for the rental market, renters are now seeing more promotions for apartments listed, including giving out first and last months' rent for free and putting cable and internet into the monthly rent cost. These incentives were big during COVID-19 but went away until recently.
When asked about tips for new renters, Ladas pointed out people should scan around different properties in their areas to see what deals or promotions they are offering.
He added those wanting to rent should have documents like credit scores, work references, and last pay stubs ready to show a renter. The documents Ladas referenced will ensure a person jumps ahead in the race to secure an apartment.
