Urban Policy Trends: Little Housing, Big Rent on the Prairie

Canada has experienced rapid population growth over the past decade. This is particularly true on the Prairies where large urban centres have grown 1.3 to 1.5 times the national rate. Despite sharing high rates of population growth and, therefore, significant increases in housing demand, urban centres in the prairie provinces have exhibited noticeably different patterns with respect to rental costs.

The variations reflect different policies governing housing supply in these cities. Beginning in 2014, Edmonton undertook a series of actions to permit denser housing construction in established neighbourhoods. Regina began adopting similar policies in 2019. Saskatoon took some of these steps and established a land bank that acquires land to provide a steady source of greenfield housing. Calgary would benefit from studying similar actions.

Recent research suggests housing markets with responsive supply, whether greenfield or infill, can absorb high demand with smaller price increases. Residents with low incomes are particular beneficiaries of flexible supply changes. While federal and provincial governments influence demand through interprovincial and international immigration policy, municipal policy continues to represent a significant contribution to the supply and price of housing.