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Around the world, millions of people dream of finding a reclusive hideaway to call their own. More and more frequently, those people are finding that home on Canada’s prairie.
Welcome to Saskatchewan real estate, the breadbasket of Canada. This gorgeous stretch of land is covered in expansive prairies in the south, dense forests in the north and more than 100,000 rivers and lakes. That makes Saskatchewan something of a sportsman’s paradise. Add to that natural beauty millions of acres of fertile farmland and it’s not hard to get the appeal.
Historically, Saskatchewan is known as a farming province. Indeed, that reputation is well-earned, as Saskatchewan produces 54 percent of Canada’s wheat and nearly 30 percent of its grain year after year.
As you might suspect from the province’s farming focus, fully 35 percent of Saskatchewan’s population lives in a rural setting, far from bustling cities. That makes Saskatchewan one of the least urban provinces in Canada. Still, real estate investors in the area can make a living in one of the province’s growing urban centers. A fair number of people have gravitated toward larger cities in recent years, and while there is still a lot of growing to do, roughly half of Saskatchewan’s 1.1 million residents are split between the province’s two biggest cities, Saskatoon and Regina (that’s hard ‘i,’ by the way: Reg-eye-na).
But first, if you would like to learn how to buy Saskatchewan real estate with the best available financing, click the link below for a free strategy call with our team at LendCity today.
The perfect invitation
Of all of Canada’s 10 provinces and three territories, Saskatchewan might be the most inviting to outsiders. It’s a reputation that Saskatchewan has worked hard to perfect and adapt over the decades. In the past, immigrants were attracted to the availability of wide swaths of farmland. Today, job seekers come to Saskatchewan to pursue a career in one of its three most prominent industries: finance, insurance and — especially — real estate. Indeed, though Saskatchewan may seem small by the numbers, the province has real investment potential.
Even if you’re not investing in Saskatchewan’s housing market, the province still makes jobs readily available. Saskatchewan’s 4 percent unemployment rate is the lowest in Canada. That makes it easy for natives and immigrants alike to find work. Add to the plentiful number of jobs, a housing market that tends to be less competitive than others, and Saskatchewan suddenly becomes a very lovely place for Canadian immigrants to call home.
The government of Saskatchewan is openly hungry for new residents. As a result, they’re doing everything in their power to draw in new people. The ultimate goal is to attract 10,000 new immigrants to the province every year. This makes the Saskatchewan real estate market a great place for developers that are hoping to build new housing developments in the province. After all, the increased population will naturally spike the need for new housing.
It’s working, too, which explains why the Saskatchewan real estate sector is one of the three fastest-growing industries in the province.
Saskatchewan Real Estate is a buyer’s market
For those people looking to buy a home in Saskatchewan, the market is skewed in their favour due to a surplus of available housing units. The excess of available housing means that home prices and home values, by extension, are falling.
When the pandemic hit, the market took a sharp drop and housing prices became more affordable for a time. Now, even though the market has rebounded, it most sub-markets within the province, the truth is that buyers still hold a ton of power.
That isn’t necessarily bad news, however, for a cunning investor in Saskatchewan. The entire region is looking at a promising economic future. Its history of encouraging immigration is also a good sign. Those two factors add up to one conclusion: the housing market in Saskatchewan is poised to grow by leaps and bounds in the coming years. That means that this is the perfect time for an investor to strike, and take advantage of lower property values before they begin to soar in the coming years.
Now, if you are a developer, you should not let this current housing surplus turn you off from Saskatchewan real estate. Between government incentives for residents in provinces such as Ontario and immigration pilots, there is expected to be plenty of growth in the population that will quickly buy up the surplus and create a new sense of demand.
That means it is highly likely that by the time any major development projects are completed, the demand will have turned and you will not need to worry about a surplus of competing Saskatchewan real estate. However, only time will tell whether that holds true.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
The Saskatchewan Real Estate Market is Stable
Even during the COVID-19 pandemic, the Saskatchewan real estate market was known for one thing above all else – stability. While the initial drop in the market was steep, the truth is that virtually all markets felt that drop and it does not really indicate anything in regards to the stability of Saskatchewan real estate.
Instead, what you need to look at is what followed. As Canadians turned back towards the market across the country, there was a stable and steady climb that started in the housing market that cannot be ignored. This showcases the resilient nature of Saskatchewan real estate and how it can successfully stand up to hard times and thrive regardless of that – a trait prized by most long-term investors.
Looking for a leg up?
As any seasoned veteran can tell you, the key to success in Saskatchewan real estate investment is doing your homework. The second key is getting to know the people involved in the industry. Perhaps more than any other industry, networking is essential in the field of Saskatchewan real estate investment. Before you sink even a single dollar into a property in Saskatchewan, it’s worth the time and effort to get to know the specifics of the area’s Saskatchewan real estate investment market and the people who inhabit it.
Enter the Real Estate Investors Group of Saskatchewan. This meetup group describes itself as “a group of like-minded people networking and learning the ins and outs of Real Estate investing in today’s market.” The group is ideal for novice investors who are keen to learn.
REIGS Saskatchewan holds bi-weekly meetings for its members. Time is given to speaker presentations as well as casual meet-and-greet periods. You can find them on Facebook.
The Best Places to Buy Saskatchewan Real Estate
Given Saskatchewan’s reputation as a rural province, it can be easy to conjure up images of isolated farmhouses and remote communities when you think about it. Those exist, to be sure, but Saskatchewan still nurtures a few rapidly expanding urban centers. The largest of those cities is Saskatoon, with a population of roughly 300,000 people.
Saskatoon is home to the University of Saskatchewan. As a result, the area is home to a high number of college graduates. The high education level in the city is one reason the median household income in Saskatoon is relatively high at $67,000 a year. The average home price clocks in at roughly three-quarters of a million dollars. Renters who want a spot in the city center pay an average of $1,082 every month for a one-bedroom apartment.
Of course, there’s more to investing in Saskatoon than the residential sector. In addition to the city’s thriving residential housing market, opportunities also abound in the commercial sector. Once a prominent agricultural hub, Saskatoon has since reinvented itself. Leveraging its position as a University town, Saskatoon has poured millions into burgeoning tech. The effort has produced one of Canada’s most prominent biotechnology research epicentres. That reputation has drawn pharmaceutical companies and financial investors to the city in droves. This economic surge has been a real shot in the arm for the city’s commercial real estate sector as office and laboratory space become increasingly valuable.
Before it was renamed after England’s Queen Victoria Regina, the city of Regina was just called Pile-of-Bones. That’s hardly the way you should picture the town these days, though. The second-largest city in Saskatchewan, Regina, is also its capital and home to nearly a quarter of a million people.
Though Regina doesn’t have a vast population, its cultural diversity is stunning. Thanks to the region’s relatively affordable housing — an average house costs about $350,000 at the time of writing this article; renters in a one-bedroom apartment can expect to pay about $1,070 per month — and a persistently low cost of living, immigrants flock to Regina. In 2004, Heritage Canada even called Regina the Cultural Capital of Canada.
Another high level of college graduates means that the median household income is quite high at $84,971 a year.
It’s worth pointing out that, in previous years, Regina’s housing market has been criticized as being relatively weak. That said, the city is seeing rapid economic growth; the GDP went up to $400 million in 2019 alone, a trend that is expected to continue. One financial expert summed it up like this: “We are now in a period of growth — full stop.”
While that economic and employment success hasn’t translated to the housing market yet, that is soon to change. Investors in Saskatchewan hoping to make money off of growth should zero in on Regina as the region continues its aggressive expansion. In the next few years, it could be poised to explode.
The third-largest city in Saskatchewan is known as the “Gateway to the North,” as it’s the last major urban center that most travellers will encounter within the province as they head up to the natural resource riches situated in its northern portion. The city is unique in that its economic prospects are still primarily driven by the natural resource extraction industry (as well as its adjacent industries). Bio-fuels and diamond mining are some of the main fields here, and government services also employ around 11 percent of the city’s workforce.
Although home prices are not likely to be as high here as they are in the other cities of Saskatchewan, they are still holding steady even in the face of the pandemic. There is an opportunity here for Saskatchewan real estate investors interested in rental properties, as the city’s reliance on extractive industries means that there’s likely a stronger demand for rental housing rather than permanent sales. If you believe that you could refurbish properties and feel comfortable as a landlord, there could be some opportunity in Prince Albert for you.
While Saskatchewan is not one of the biggest population centers in all of Canada, it still punches above its weight economically thanks to its large deposits of natural resources and its proud history of agricultural work. There are investment opportunities in the major cities discussed here, but investors should also be prepared to look into some of the smaller towns in the middle and northern part of the province – there is sure to be demand for housing there as the province’s economy continues to rely on the resources stored there.
With a population of just 33,000, Moose Jaw is Saskatchewan’s fourth-largest city. Where population centers like Regina and Saskatoon favour a more intellectual approach to their days, the region of Moose Jaw is known for its workers. The city in southern Saskatchewan has a thriving industrial and agricultural sector. As a result, real estate investors in Moose Jaw would do well to consider learning how to evaluate rural properties for both businesses and private citizens.
There is a notable military presence in Moose Jaw, as well. Moose Jaw’s flat terrain and a huge number of cloudless days make it an ideal spot for flight training. Indeed, the Canadian Air Force Base at Moose Jaw is the country’s primary flight training facility. As a result, a defined military presence has grown up around the city. Of course, these are pilots, not enlisted men, which helps explain why the median household income is so high at $81,578.
The average cost of a house in Moose Jaw runs just $245,000 and the average monthly rent on a one-bedroom apartment is only $900. As a result of that relatively inexpensive real estate, Moose Jaw’s housing market has seen consistent upticks in popularity year-over-year.
It’s also important to note that Moose Jaw is home to a casino, which can provide a significant boost to the city’s short-term rental market.
Saskatchewan Real Estate in Short
In short, Saskatchewan’s rural land and excellent employment rate make it a sleeper hit for real estate investors. This province is projected to grow exponentially in the coming years, so now is a good time to invest in Saskatchewan real estate before the market gets more expensive. There are several real estate investor groups available, including the Real Estate Investors Group Saskatchewan, for networking and more resources.
Saskatchewan Real Estate Professionals
We have searched high and low for real estate investing professionals in Saskatchewan. Below, you can find professionals we have researched and can confirm they specialize in working with Saskatchewan Real Estate Investors.
To ensure the maximum success in Saskatchewan real estate, or any city, you should always use professionals who understand and work with investors, your income depends on it.
This list may not fully list all the professionals in the area, but the ones we have personally investigated and that we would refer our clients to.
If you’re a Saskatchewan real estate professional and would like us to consider adding you to the list, please contact us.
Alternatively, you can click the link below to learn more about the best Saskatchewan real estate lending options and how you can leverage them today.