After enjoying a brief reprieve in 2009, it looks as though the vacancy rate crunch is again plaguing Estevan.
According to a recent report from the Canada Mortgage and Housing Corporation, the vacancy rate in Estevan is on the decline after last year's brief rally. The report also indicated that the Energy City has the highest average rent among all urban centres in the province and is among the leaders nationwide.
Conducted in April, the survey looks at all Saskatchewan communities with a population of at least 10,000 people. It noted that the vacancy rate was a scant 1.9 per cent compared to 3.3 per cent at the same time last year.
Among the local rental inventory, bachelor suites were the most plentiful with a rate of 11.5 per cent. The vacancy rate for one bedroom apartments is 1.8 per cent while the rate for two bedroom apartments is 1.3 per cent.
Anyone looking for a larger residence is out of luck. The report noted that all of the city's 35 rental suites with three or more bedrooms were filled as of April.
Estevan's declining vacancy rate actually bucked the provincial trend. Overall, the rate increased from 1.7 per cent in April 2009 to 2.4 per cent this year and outside of Estevan, every community experienced an increase.
The largest was in Swift Current where their vacancy rate jumped from 1.1 per cent to 7.5 per cent. Lloydminster, Prince Albert and Yorkton also had significant increases while Saskatoon and Regina had moderate changes.
The CMHC report says growth in the coal, power generation and agriculture sectors have helped insulate Estevan from reduced economic activity in the resource sector, leading to the decline.
Not surprisingly, as the vacancy rate has declined, the cost of rent has skyrocketed. Estevan had the largest year over year rental increase, going from an average of $813 in 2009 to $877, which is also tops in the province.
The cost of a bachelor suite is $517 while the average for a one bedroom apartment is $824. A two bedroom apartment costs $942 a month and rent for a place with three or more bedrooms is $949.
North Battleford has the lowest monthly average in Saskatchewan at $613. Regina has risen to $778 while Saskatoon is nipping at Estevan's heels with an average of $843.
The rental increases in Estevan and other centres have re-opened the debate about rent controls.
NDP Social Services Critic David Forbes said with rents continuing to rise dramatically despite the vacancy rate edging upwards, a debate on some form of rent control in Saskatchewan is needed.
"During the recent legislative session, we brought a number of renters concerned about rising rents to the legislature," Forbes said. "Those tenants called on the Wall government to re-open the debate on rent control. The Wall government rejected their calls. The Wall government says that the rental market will take care of itself, but the evidence shows that isn't happening."
Forbes said that interest in rent control is growing in the province, noting that more than 400 have joined a Facebook group calling for rent control.
"The Wall government wants to hide from this debate, but it's happening out there in Saskatchewan communities. It's time for the government to listen and to take action on rising rents."
