A new analysis of the state of the residential real estate market supports the long-held industry view that public policy favoring more construction would increase supply, putting home ownership within reach for more people.
The Fraser Institute has endorsed that position with Saskatchewan as the case-in-point for Canada.
The Institute notes Regina and Saskatoon are among the most affordable major cities in the country when comparing home prices to median incomes. But that wasn’t always the case. Ten years ago, were well back on this measure. Today we stand as two of only four cities where median incomes rose faster than house prices.
The difference, says the Institute, is proactive municipal government policy that streamlined approval processes and allowed for greater density. Saskatoon has the fastest approval process in the nation. Regina is third.
Further, the province removed sales tax on new builds and offered more flexibility on energy efficiency standards.
These pro-development policies triggered a 48-percent increase in housing starts in Saskatchewan while BC was negative two-percent and Ontario down 18-percent.
