Tegan Hill and Austin Thompson are analysts at the Fraser Institute.As Canadians across the country struggle with sky-high housing costs, Saskatchewan’s two largest cities — Regina and Saskatoon — remain comparatively affordable. Clearly, when governments make it easier and cheaper to build, families benefit, even amid a national housing crisis.Of course, buying a home in Regina or Saskatoon is not a walk in the park.In 2023, the latest year of available data, families earning the median after-tax income in Regina ($67,440) had to save $61,720 (the equivalent of 11.0 months of after-tax income) for a 20% down payment on a typical home. After the down payment, the monthly mortgage ($1,586) would consume 28.2% of their after-tax income.In Saskatoon, families earning the median after-tax income ($68,230) had to save $74,720 (or 13.1 months of after-tax income) for a 20% down payment, and their monthly mortgage ($1,920) would consume 33.8% of their after-tax income. In both cities, this is not “affordable” housing. But again, compared to most of Canada, Saskatchewan remains relatively affordable. In 2023, Regina (third) and Saskatoon (ninth) ranked among the most affordable out of 36 major Canadian cities (based on the share of median after-tax family income needed for monthly mortgage payments)..That wasn’t always the case. A decade earlier, in 2014, Regina ranked 15th and Saskatoon 23rd on the same measure. What changed? Between 2014 and 2023, Regina and Saskatoon were two of only four major Canadian cities — out of 36 analyzed — where median after-tax family incomes rose slightly faster than typical home prices. This modest progress stands in sharp contrast to most of the country, where home prices surged far ahead of incomes and affordability deteriorated dramatically.Saskatchewan’s relative housing affordability partly reflects policy choices that make it quicker and cheaper to build new housing. At the municipal level, policymakers in Regina and Saskatoon have eased restrictions to allow higher-density developments. Both cities have streamlined their approval process for new housing projects — in fact, Saskatoon and Regina now rank first and third, respectively, among major Canadian cities for the fastest approval timelines for new housing projects. And both cities charge relatively low upfront fees on new high-rise developments (though Saskatoon does impose considerable charges on new low-rise homes). For its part, the provincial government has exempted new homes from the provincial sales tax and given builders greater flexibility regarding energy efficiency standards for new homes. These pro-development policies have encouraged homebuilders to expand supply, which helps contain prices for both homebuyers and renters. The results speak for themselves. From January to September this year, housing starts in Saskatchewan surged by 48% compared to the same period last year, even as construction slowed in British Columbia (-2%) and Ontario (-18%), where heavier taxes, fees, and regulatory burdens continue to weigh on new housing projects.Regina and Saskatoon’s relative housing affordability didn’t happen by accident — and it won’t last without continued effort. Policymakers should maintain low taxes and fees on new housing, keep approval timelines short, and maintain flexible rules for higher-density development. These policies will help ensure homes remain within reach for many Saskatchewan families.Tegan Hill and Austin Thompson are analysts at the Fraser Institute.
