Private apartment vacancy rates and monthly rental costs in Prince Albert are static but publicly-subsidized rentals are increasingly scarce. (zoeken.ca)

By Glenn Hicks

Rent

P.A. rentals static but downtown demand is on rise

Jan 27, 2020 | 8:00 AM

Overall, Prince Albert does not yet appear to be seeing private apartment vacancy rates decline and monthly rentals increase as they are in Saskatoon and the Battlefords.

However, as the P.A. rental market remains static there is an increasing demand for such accommodation in the downtown while government-subsidized units are becoming more scarce.

The most recent available annual figures for private apartments from the Canadian Mortgage and Housing Corporation – which cover the change from October, 2018 to October, 2019 – point to a decline in the vacancy rate from 7.8 per cent to 5.4 per cent in Saskatoon for one-bedroom units. The tightening of availability goes from 8.8 per cent to 5.9 per cent for two-bedroom apartments. In North Battleford the stats show the vacancy rate drop from 14.2 per cent to 8.9 per cent for two-bedroom units. Both cities also saw increases in monthly rent cost. These stats could suggest the start of an uptick in the economy.

Prince Albert however, has yet to see such movement. In fact its vacancy rate increased from 8.1 per cent to 9.1 per cent (one-bedroom) and from 6.7 per cent to 6.9 per cent (two-bedroom). While the average monthly rent for a one-bedroom unit rose from $787 to $802, the cost for two-bedrooms barely changed at $898.

The provincial stats can be downloaded here.

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Downtown demand

Despite the relatively stagnant stats for the city as a whole, the P.A. Downtown Business Improvement District said there was a shortage of rentals in the downtown while demand was increasing.

“I’m hearing from developers who want to renovate and change things to accommodate students and the professionals who want a walkable lock up and go life,” Carolyn Carleton told paNOW.

Carleton said rents for downtown businesses were not increasing and she figured in the short term the residential sector in the downtown was unlikely to see a cost hike. But that could change.

“I think [monthly rent] will maintain it’s level, but [with] fewer spaces opening up for rental and as it becomes more desirable but with less availability, it may go up,” Carleton said. “Also, sometimes people up the rent a little bit to make improvements to their building.”

Publicly funded rentals scarce

While there is hope the downtown rental scene will take off, the situation across the city remains challenging for many people in need of affordable rent. The vacancy rate for publicly funded apartments has edged down according to Dave Deobald, the general manager of the Prince Albert Housing Authority (PAHA), and that’s not a healthy sign.

“The city and surrounding area’s economy is slow; there’s not much industry bringing anyone in to up the demand,” he told paNOW. “When our vacancy rate decreases it means people in the city have less income because they are headed for subsidized housing.” He explained when their vacancy rate increases it means the economy is better and people are renting on the open (private) market.

Deobald said the PAHA handles 953 income-based units across the city , 421 of which are designated for seniors. They have one, two and three bedroom units and a small amount of four bedrooms. Those larger rentals are very much in demand.

“There’s a lot of larger families [in need] and there are not a lot of units with four or five bedrooms,” he said.

He said anyone in need of subsidized housing could apply at PAHA and reminded the community they offer a free monthly education session for landlords and tenants.

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glenn.hicks@jpbg.ca

On Twitter:@princeabertnow