Rising Saskatoon rental prices are fuelling homelessness numbers, community group says
Rising rental rates and diminishing options are causing some with lower income to forgo housing altogether, a Saskatoon community organization says.
According to the most recent Canada Mortgage and Housing Corporation (CMHC) rental report, Saskatoon’s rental vacancy rate was at its lowest since 2014.
“The vacancy rate for purpose-built rental units continued a years-long decline, falling to 3.4 per cent. Rents grew by 3.6 per cent after being flat last year,” the CMHC Rental Market Report said.
There were several reasons for the increase, according to the CMHC, including an improvement in employment conditions and a growing population rate thanks to immigration.
The report also noted that the number of rentals in the city grew quicker than at any point in the last three decades.
“There were 801 units added— nearly 40 per cent higher than the amount added last year. More than half of these units were added in the coveted northeast,” the report said.
Saskatoon’s northeast saw the lowest vacancy rate at 1.3 per cent and the highest average rent at $1,250. However, more rental units aren’t leading to more options, according to the CMHC.
“Rental market demand continues to outstrip new supply, with the increase in occupied units exceeding the increase in new rental units,” the report said.
They also noted that the number of renters is not likely to drop soon.
“The increasing ownership is decreasing the incentive for renters to transition to homeownership. This means more demand will remain in the rental market.”
And it also means higher rents, as the CMHC notes that rents jumped an average of $150 between a tenant moving out and a new one moving in.
AFFORDABILITY CHALLENGES
CMHC said that rental affordability challenges were the worst for lower-income families.
“Households in the lowest income quintile could only afford 7 per cent of properties in the rental universe,” the report said.
It’s a problem that the executive director of the Community Legal Assistance Services For Saskatoon Inner City Inc (CLASSIC) said was leading to an increase in homelessness.
Chantelle Johnson said that most people living with lower incomes were relying on government assistance that offers $315 for living expenses and $575 for housing, which includes utilities.
However, most one-bedroom or bachelor suites in the city start at $700 according to the organization’s research.
She said she has been with the CLASSIC for 11 years and says the last year or so is the worst she has seen.
“We have people who camp out in our parking lot. We have people who sleep all in our back alley behind where we work,” Johnson said.
She said those at other community-based organizations are seeing the same crisis.
“It’s apparently visible in the community that there is far more houselessness than lots of us have ever witnessed in Saskatoon before.”
Johnson said in order to fix the problem, there is a need for more affordable housing units and an increase in the fixed income rate.
“Like all of us right now our clients are experiencing even more pressure points because of the cost of things such as groceries. When a bucket of eggs is $6 and you have $315 for the entire month for all your groceries, clothing and Tylenol, feminine hygiene products, you burn through that pretty quickly.”
CTVNews.ca Top Stories
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.