When I bought a condo back in 2013, one of the reasons I cited was that “13 years in Estevan’s rental market was long enough.”
Granted, most of my experiences weren’t bad. The first few years I lived here were fine. I had a quiet little basement suite in southwest Estevan, and granted, by the time I moved out in 2007, after nearly seven years, I had outgrown it and needed a change.
But my rent had increased about $100 a month in seven years, the landlord was reasonable and more than understanding with the fact that I was essentially a bum at that point in my life, and he didn’t jack up the rent in late 2005 and early 2006 when the economy boomed and rental properties became scarce.
From 2007 to 2013, there were multiple times in which Estevan had a rental vacancy of zero. Other times, the vacancy rate was under three per cent.
If a property was available, either it just came on the market, or something was seriously wrong.
I believe Estevan, at one time, also had the highest average rent in the country, ahead of Toronto, Vancouver, Calgary and other communities you would associate with high rent costs.
I’m sure there were some rental properties that weren’t included in those CMHC reports over the years, but trying to find a good, available rental property in Estevan was like trying to find a Pauly Shore movie among a list of Oscar nominations.
You’d often see people offering a room for hundreds of dollars a month. Not an apartment or even a bachelor suite. A room.
The lack of available housing became the biggest impediment to growth in Estevan.
The ironic part is that in 2013, the year before the oil price crash, the building permit report for Estevan showed there were permits for nearly 200 housing units issued. We finally had the construction levels we needed, and within a year, the boom was done.
Needless to say, when the opportunity to escape the rental market arrived and I could purchase a nice, 28-year-old condo, I jumped at it.
(Please note: I’m not looking to sell my condo).
Had I known that the price of oil would plunge a year later, and that zero per cent rental vacancy would eclipse 20 per cent before too long, I might not have been too keen to purchase. But I’m still happy with my decision.
The CMHC rental market report is no longer the big deal for Estevan that it used to be. Sure, there are people who still take an interest in it, but people don’t talk about it like we used to.
Once we started hovering around 20-25 per cent vacancy, the general public found other topics to discuss.
Estevan has the highest rental vacancy rate in the province. The average rent in Estevan is now sixth in Saskatchewan. People will say it’s still too high, and maybe the market reflects that, but it is worth noting that our rent is now below the provincial average.
If you’re a rental property owner, or in real estate, banking or economic development, or if you’re a renter, you’re going to still find this report very interesting. If you’re a numbers-obsessed person like me, you might take a good look at it. But the average citizen likely have more pressing things to worry about, like trying to stay sane during a pandemic.
The rental market is likely one of the aspects of our region most affected by the boom and bust nature of our economy. When the price of oil was above $100 per barrel, the landlords were thrilled. But it became a renters’ market in a hurry.
If we do get another oil boom, the 26 per cent vacancy rate that CMHC reported for October will be very low again.
The key is finding that middle ground in which landlords can make money from their properties, since they aren’t operating a charity, renters can have a comfortable place to live without being house-poor or gouged, and people can come to Estevan and find a nice place to live that they can call home, whether it be for the short-term or long-term.
Thirteen years in Estevan’s rental market was enough for me. Actually, 13 months in the rental market in 2007 and 2008 would have been enough for anyone.
It’s not so bad now, but I’m glad to be a homeowner.
