Saskatchewan Oil Industry Cost Advantage

Rate of Inflation

The rate of inflation in Saskatchewan remains slightly under the Canadian average. The following chart shows recent inflation levels by province.

Inflation Rate Chart

Source: Canadian Price Index

While much of the inflation is caused by real estate, labour shortages are also beginning to impact overall living and business costs.

Real Estate

One of the major advantages of location in West Central Saskatchewan is the affordable cost of real estate. Commercial, industrial, residential, recreational, and land prices are very competitive.

While prices are rising as demand is increasing, the region still offers some of the most affordable costs in Canada.

Residential Cost Comparison

Residential home prices in west central Saskatchewan communities were compared to eastern Alberta. Modest bungalows were used for comparison. Prices were obtained from MLS listings and local community realtors.

Eastern Alberta / West Central Saskatchewan

June 2008

Cost of Living – Housing Costs Comparisons

9-City Housing Comparison

	Detached Bungalow		Executive Detached 2-Storey
	LOW	HIGH	LOW	HIGH
Regina, SK	$226,000	$233,000	$320,000	$377,000
Saskatoon, SK	250,000	320,000	400,000	420,000
Calgary, AB	369,000	526,000	469,000	760,000
Vancouver, BC	381,000	1,025,000	535,000	1,500,000
Winnipeg, MB	201,000	231,000	289,000	356,000
Toronto, ON	300,000	665,000	396,000	1,600,000
Ottawa, ON	250,000	479,000	293,000	487,000
Montreal, QC	180,000	295,000	250,000	998,000
Halifax, NS	175,000	235,000	290,000	427,000

NOTE: Prices have been rounded to the nearest thousand
Source: Royal LePage Survey, 4th Quarter 2007

Housing Affordability

Affordability information is calculated by dividing average home prices by average annual income from full time employment.

Saskatchewan and this region ranks near the top in all ratings of affordable places to buy a home.

(A recent article in MoneySense magazine ranked North Battleford Saskatchewan as the second most affordable of Canadian cities, requiring only 1.28 years of income to pay for a home. MoneySense; Canada’s Best Places to Live; May 2007)

The latest Statistics Canada information on affordability uses 2001 information. While both prices and incomes have changed a lot since this time the inflation rates on home prices suggest that the general comparison is still valid.

General utility costs in the province compare favourably to other jurisdictions.

Taxes and Household Charges – Canadian major city comparison

Real Estate Demand is Increasing

While prices remain lower than those in Alberta, the demand for all types of properties has been increasing in the region in the past year. Many buyers are coming from Alberta partly because of the better prices and availability of properties.

There has been a strong demand for acreages and considerable activity in recreational property. Home sales are strong and prices are increasing.