New housing in Saskatchewan is facing a dilemma: A growing region means there is increased demand for housing and that means an increased demand for supplies, most notably lumber. But there is a shortage of supplies.

On top of that, Stu Niebergall, President & CEO of the Regina & Region Home Builders’ Association says, “It will be critical that the industry be able to ensure that land supply – serviced lots – are available to meet the need of our growing region.”

Immigration is also a large factor in housing demand, especially for urban centres. There are indications that immigration is starting to return to pre-pandemic levels – increasing consumer confidence with it.

Saskatoon & Region Home Builders’ Association CEO Jason Yochim says, “An increase in residential  c permits year to date compared to 2021 indicates strong consumer confidence in the economic outlook for the province.” He says, “Although material supply shortages and increased pricing are delaying or cancelling some projects, overall consumers are moving forward with plans to invest.”

The resale home market continues to be strong with year-to-date sales in 2021 up 72% while inventory levels have been steadily falling. This suggests a supply shortage which could help fuel demand in new construction.