Saskatchewan REALTORS® Media Release - October 12, 2011

Support Tax Incentive for More Rental Units

Saskatchewan’s real estate industry wants the next provincial government to offer a special short-term tax incentive to increase the number of apartments and other rental units.

REALTORS® say people looking for a place to rent are finding very few choices because supply is limited in today’s market.  Saskatchewan has the country’s highest rate of growth but the second lowest supply of rental units on a per-person basis.

 Source: Statistics Canada  (Click on chart to enlarge)

The Association of Saskatchewan REALTORS® say today’s rental shortage is the result of decades of neglect and poor policy that made investing in apartments unattractive.

Speaking for the real estate industry, Bill Madder said a tax incentive for people to invest in a rental property development fund could draw new funds to badly-needed rental units. He said the fund would be similar to Labour-sponsored Venture Capital Funds.

“The tax credit concept is well-known and much more efficient than direct government funding. For each dollar of incentive, many times more dollars would flow to provide rental units.”

Mr. Madder said a tax incentive is better than rent controls.

“Rent controls hurt the people they are supposed to help. They scare away investment. We need more supply and more choices, not more bureaucracy.”

Mr. Madder added that research conducted for the Association of Saskatchewan REALTORS® shows people believe it is hard to find new rental housing and support government efforts to create more.

The chart below shows how the shortage of new investment in apartments affects Saskatchewan renters. Over six in ten believe it would be challenging to find an acceptable replacement for their current accommodation.

Source: Praxis Analytics September 2011

This chart shows strong support for the government to encourage more rental units to come onto the market.  Two thirds of Saskatchewan people believe it is important for the next government to take steps in this direction.

    Source: Praxis Analytics September 2011

 INFORMATION:  Bill Madder, 220-9570

                                  Survey report details are available online at ASR Housing Matters Survey 2011

Election issues

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Well, the campaign is underway and as mentioned, Saskatchewan's REALTORS® will be raising awareness of important housing issues during the election. The two major issues we will be raising are: Housing Supply and Tax Competitiveness. Housing supply because in the current market, especially for rentals, we have a serious shortage of available units and greater supply is the best form of rent control. Tax competitiveness was selected because lower property taxes make homes more affordable.

With regard to housing supply here is a link to a recent op-ed article that was published last week in the Regina Leader Post and the Saskatoon Star-Phoenix: Rent Control Op-Ed and here is a link to a summary of my interview on this topic on The Richard Brown Show: Richard Brown interview.

Watch for more on these issues as the campaign progresses.

Welcome to "Housing Matters"

"Housing Matters" is the theme chosen by the Association of Saskatchewan REALTORS® to raise awareness of housing issues during the upcoming provincial election. With the expected election call next week we will be posting media releases, position papers, etc. on issues of importance to not only the real estate industry but to the entire province. Real estate is a major indicator of the health of our economy so policies and programs that have an impact on the real estate market impact everyone.
Because ......