It's not a big increase, but when the previous benchmark was zero per cent, it's a notable event.
The Canada Mortgage and Housing Corporation released its fall rental vacancy report last week. The report says that Estevan's rate has climbed to 1.8 per cent. That is up from the fall of 2012 when the rate was 0.6 per cent and also over the 2013 spring report where the rate had plummeted to 0.0 per cent.
Unfortunately for renters in Estevan, the increase in vacancy has not translated into lower prices. The Energy City continues to lead the way with an average price of $1,106 per month.
In an interview Friday, Mayor Roy Ludwig said the City is pleased to see any increase in the vacancy rate but remains well aware that their efforts to bring more rental accommodations to Estevan are far from complete.
"I guess (their work) is starting to bear fruit," Ludwig said. "We've got a lot of developers in town, and they are working hard to make a difference.
"I think we are starting to see incremental, positive change. We have been working for years on this file with the Ministry of Housing and with our developers. This is absolutely good news, but I don't think it means that we can ease up. We have to remain focused, but it is good news."
As always, the report delves into many aspects of the local rental market. With respect to vacancy, the availability of bachelor suites and one-bedroom apartments has helped to increase the overall rate.
The rate for bachelor suites was 4.2 per cent compared to 0.0 per cent last year. The availability of one-bedroom suites has risen to 4.1 per cent from 1.2 per cent in 2012. Two-bedroom suites have dropped to 0.0 per cent while the rate for three-bedroom suites was not available due to unreliable data.
On the price side, Estevan experienced the largest year-over-year increase in the province at 10.4 per cent. Bachelor suites rose to $740 from $657 and one-bedroom suites increased by $87 to $1,031. Two bedroom suites averaged out at $1,175 compared to $1,111 in 2012. The largest increase was in three or more bedroom properties, which cost an average of $1,262 compared to $1,101 last year.
As for the rest of the province, Weyburn can now lay claim to having the lowest vacancy rate at 1.5 per cent.
According to the CMHC report, crude oil exploration and production is largely responsible for the low rates in both Estevan and Weyburn. They also noted that the addition of work camps in the region has helped to improve the rate.
The highest rate in Saskatchewan is in Prince Albert where they are at 10.3 per cent.
After Estevan, the highest average rent is in Lloydminster at $988. Saskatoon and Regina are third and fourth respectively. Despite their declining rate of availability, Weyburn renters pay the least in Saskatchewan at an average of $699.
Ludwig said along with increasing the availability of rental properties in Estevan, the City also remains focused on finding more affordable accommodations for low income earners or those in difficult circumstances. One project of note is a potential housing complex that would provide housing for Saskatchewan Energy Training Institute students and those in need of affordable housing.
The City, Southeast Regional College and Estevan Chamber of Commerce have been working on this project for a number of months and plan to release a report in January on the economic impact of the Bakken oil play on southeast Saskatchewan.
The report is part of building a business case to show both the provincial and federal governments how an investment in housing would help the local economy continue to flourish.
"We are meeting with all of the involved groups and we would like to get some of the larger businesses that have issues with accommodations involved and try and get the province to buy in as well as the federal government," Ludwig said.
"Of course the City would have to come to the table and our contribution would be land."
The economic impact report is expected to be released during the Estevan Chamber of Commerce luncheon Jan.8 at the Saskatchewan Energy Training Institute. Southeast Regional College CEO Dion McGrath will be the featured speaker at the luncheon.
