The Regina and Region, and Saskatoon and Region Home Builders’ Associations applaud the Saskatchewan government’s announcement in the October 25 Throne Speech regarding a new multi-year program that rebates a portion of the PST paid on a new home, while adding a program that includes secondary and backyard suites into the mix.
In a news release issued October 25, the home builders associations say that while this program is an important investment in home ownership, it also provides additional support to homeowners looking to add secondary or backyard suites.
The home builders associations characterize the move as a ‘Made-in-Saskatchewan approach’ designed to help address housing affordability and inventory challenges.
This announcement comes after the federal government’s recent move to eliminate GST on purpose-built rentals this past September, which represented a significant win for a segment of the residential construction sector.
While this measure is poised to augment the market’s available rental supply, it does not address the challenges associated with home ownership, which have become more pronounced in recent years.
The Saskatchewan government’s program aims to restore balance by also addressing the diverse housing needs of the population, creating home ownership opportunities and providing individual homeowners and families more choice to invest in their own property with a secondary or backyard suite.
“We acknowledge it is a challenging time for the Government of Saskatchewan to create such a program, with so many demands on resources,” said Saskatoon and Region Home Builders’ Association CEO Nicole Burgess. “We are very appreciative of the Minister of Finance, Donna Harpauer, and her team at the Ministry who have been very welcoming to our professional associations over the past years, listening to our concerns and allowing us to work with them on the development of a solution that will bring value to the economy.”
“What our Provincial Government has achieved by introducing this PST Rebate on newly built homes is much needed balance for the Saskatchewan housing market,” added Burgess. “The PST Rebate on newly built homes, secondary and backyard suites is an investment into the diverse needs of the population, from renters to aspiring homeowners. A balanced approach that fosters both rental affordability and homeownership opportunities may be the key to addressing the province’s housing challenges effectively.”
“In Canada and Saskatchewan, home ownership has historically been a key driver of wealth accumulation for many families,” said Region and Region Home Builders’ Association Preisdent and CEO Stu Niebergall. “One might go as far as saying, home ownership at best is a great investment and at worst is forced savings.”
Niebergall went on to say that restricting access to home ownership or favouring one type of housing form over another will exacerbate wealth disparities, as renters find it difficult to build equity over time.
The Government of Saskatchewan made it clear in the Throne Speech that they understand that homeownership and a healthy housing continuum are key components to a vibrant, growing and successful society. To have a healthy housing continuum, Saskatchewan needs a housing industry that can function at its intended potential and be a strong sector that creates jobs and opportunities for our residents.