Experts see opportunity. Is this a sign of growth?
The City of Prince Albert continues to lead Saskatchewan’s major cities in vacancy rates, according to Canada Mortgage and Housing Corporation (CMHC).
A report from Prince Albert Daily Herald highlighted that n 2024, Prince Albert reported a vacancy rate of 5.6%, a slight increase from 5.4% in 2023. This figure is notably higher than the provincial average of 2.7% and far exceeds rates in Regina (2.7%) and Saskatoon (2.4%).
Cameron Choquette, CEO of Rental Housing Saskatchewan, attributed the marginal uptick in vacancy to typical market fluctuations rather than structural changes. “I would say just by the looks of the stats vacancy (rates) increased really in two- and three-bedroom units, just slightly. I mean, we're only talking about 0.2 decimal points, so although the number of units under construction in 2024 is only 28 in Prince Albert, compared to 190 in 2023, I think we can attribute the slight vacancy growth to just some natural churn in the market. (It’s) nothing really systemic or structural,” Choquette said.
Housing stock and growth potential
The CMHC report highlighted a significant disparity in rental housing construction across Saskatchewan’s cities. While Saskatoon and Regina have thousands of units under construction—2,980 and 1,003 respectively—Prince Albert saw a sharp decline in new builds. Only eight units were under construction at the end of 2024, compared to 174 at the close of 2023.
Despite this slowdown, Choquette remains optimistic, pointing to Prince Albert’s capacity for growth. He noted that the city’s higher vacancy rate means there is housing availability for new residents, especially with projects like the Victoria Hospital expansion and The Yard district underway.
Rising rents and affordability
The CMHC report also revealed a province-wide increase in rents, which rose by an average of 7.9% from October 2023 to October 2024. The increases were attributed to rising costs for utilities, taxes, and insurance, as well as maintenance and debt servicing. Despite these challenges, Saskatchewan remains Canada’s most affordable province for renters, Choquette noted.
Future prospects
Choquette emphasized the importance of continued investment in housing development to sustain Prince Albert’s growth. He noted that aging rental stock in the city highlights the need for new builds. “What we hope to see is those apartments units completed in 2025, which will bring some much-needed new rental units into the market in PA to complement the existing stock that’s, on average, older in nature,” he said.
Maintaining the current vacancy rate of 5.6%, according to Choquette, could benefit the city in the long term. He said a steady vacancy rate provides a healthy balance, preventing the rate from dropping too low.
“(If) that vacancy remains steady at about 5.5% and hopefully we can continue to see new housing growth to replace that existing stock that will eventually need a significant investment or we run the risk of that vacancy rate coming down too much, which we want to prevent in the long term,” he said.
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