The Saskatoon rental market, just like all markets in Canada, is shifting. With CMHC incentives and developers recognizing the high percentage of renters, we have seen an increase in development that are all built for rental. We have not seen this for decades, if ever. Many of this was due to the demand of previous years and the high immigration numbers which indicated we were going to continue to see more and more newcomers to Canada. We do not have immigration coming in at the rate of previous years and, in fact, we see many immigrants who now have to leave Canada. Population growth in Canada also has impacted the rental markets. We are just not growing at the rate we have in the past.
Let’s look at the impact this is going to have. (Chart 6. Ratio of Units under construction to RMS Rental Universe)
This graphic from a recent economic report (published by the Economics Department of Central 1 Credit Union) shows the % of oversupply predicted in the different markets in Canada. Saskatoon is sitting better than many but still will show a close to 15% oversupply based on housing and development starts.
What this really tell us:
- Vacancy in some micro markets (this refers to areas and type of rental) is rising in Saskatoon (meaning: renters have more options than they did a year ago). We have an over supply here
- New rental supply is landing in waves, and it’s not evenly spread — some areas and unit types are feeling it more than others. Developments bring in a high number of units in a short period of time
- Mid range rentals are seeing more competition, and incentives are becoming more common in that segment
- At the same time, affordable rentals continue to be in demand
- Lower income rentals are in the highest demand due to a shortage in this segment (this is not the majority of my investors)
What this means for your investment
We don’t win this market by chasing quick fills to properties, we win by:
- Positioning your property on value, not desperation pricing
- Attracting stable, long-term tenants
- Reducing turnover
What we’re doing differently right now (this is your advantage):
- Micro‑market pricing + positioning (not “one size fits all”)
- Listing strategy that highlights value and lifestyle fit (not just bedrooms and baths)
- Focus on tenant quality, we are not relaxing screening standards to fill faster
- New advertising avenues to attract tenants in new ways
- Retention strategy is now a priority, because stability protects cash flow
Where this is a partnership (how we can help)
If your property is vacant or approaching turnover, the biggest help is speed + alignment:
- Fast responses on rent positioning adjustments when sent to you (lower rent is not forever – it is only until the next renewal where we reanalyze the market and adjust upward whenever possible)
- Quick decision making on small “rent-ready” upgrades (paint, lighting, cleaning, minor repairs at turnover positioning your property as best as it can be)
- Understanding that there are ebbs and flows – real estate, just as everything else, is a cycle (who thought flare denim was ever going to come back!)
When the market fluctuates it is natural to have concern over your investment. Our team of experts has been working with investors for years and we have experience and education to guide our decisions and analyses of the current rental market in Saskatoon.
If you have any questions, please feel free to call us at 306-244-7276 or email us at hello@envisionyxe.com.