The Impact of Population Growth on Saskatoon’s Housing Market: What Buyers Should Know
Saskatoon is one of Canada’s fastest-growing cities, drawing people in with its vibrant culture, growing economy and family-friendly feel. With a population growth of 1.46-1.85% each year, the city is on a steady growth trajectory. This growth is putting more demand on the housing market, presenting both opportunities and challenges for potential buyers.
Population Growth and Housing Demand
With the population of Saskatoon growing from 337,000 in 2022 to 347,000 in 2024, the upward trend is not just a statistic, but represents thousands of new residents looking for jobs, housing and services in the city. Experts predict the population growth will continue at similar trends over the next 10 years, putting even more pressure on the city’s infrastructure and housing. While the population increase may seem moderate, the increases will continue to put pressure on the real estate market as housing starts have not been able to keep up with this projected growth. This year’s housing inventory is 53% below the 10-year average, with the inventory in 2024 reaching the lowest point it has been at since June 2007.
Current Housing Market
In August 2024, the average price of property sales in Saskatoon reached $390,000, a 5% increase from August 2023. This increase is even more pronounced in single-family dwellings, with an average price of $466,000 in August 2024, a 6% increase from last year. This trend highlights the increased cost of home ownership in Saskatoon, with prices being pushed higher by increased demand and limited supply.
What Buyers Should Expect
With a more competitive market forming in Saskatoon for home buyers and a growth trend pushing this trend further along, home buyers should be prepared for rising prices and a potentially longer search for ideal housing. Limited inventory and lower housing starts means buyers should be prepared to act quickly when an ideal property does become available. Bidding wars may also be on the horizon, further driving prices up. In the coming months and years, buyers will need to adjust their expectations and budgets to match the increasing pricing and lower inventory. However, the increased population growth and rising prices present an opportunity for investment in real estate for those looking to increase their portfolios. Long-term appreciation in Saskatoon real estate could be a lucrative investment for the right buyers.
Saskatoon’s population growth is reshaping the housing market, presenting both challenges and opportunities. With the demand constantly outpacing the supply, home buyers can expect to be looking in a competitive market with prices continuing to rise. Staying informed about the latest market trends and working closely with local professionals in the industry will provide the best way to navigate the buying process moving forward. While the market may be competitive, Saskatoon remains an attractive and vibrant place to call home.
