Rising costs are the new normal for Saskatchewan’s home building industry

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The effects of inflation and an ever more shaky supply chain are being felt in many areas of daily life.

The housing industry in Saskatchewan is no stranger to these recent difficulties.

According to Stu Niebergall, CEO of Regina Home Builders Associationconstruction costs continue to rise and nationally they are up approximately $80,000 per unit or 16% from last year, half attributed to lumber costs and the other half to other building materials.

“On top of that, supply chain issues are causing home construction to be delayed by up to 10 weeks on average,” Niebergall said.

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Inflation fallout hits construction industry in Saskatchewan

While Saskatchewan remains one of the most affordable provinces for new home builders, the trickle-down effect of rising costs is being felt across the Prairies.

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Niebergall added that homebuilding prices in the province have remained relatively stable for the past five years, but that’s not the reality today.

“In the local market, we don’t see the cost of building new homes going down. We still think this is a good year to build as we expect prices to continue to rise from 2022 to 2023,” the homebuilder CEO said.

Brandon Fuchs, President of Regina North Canadian constructionsays receiving monthly emails from a supplier about a price increase is the new normal.

He’s noticed a recent trend with some clients postponing their projects to later in the year or putting them on hold indefinitely.

This is something he says is unfortunate because it can only cost them more money in the long run because the project is unlikely to get cheaper.

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“The reality is that if everyone stops doing everything to wait until maybe tomorrow is better, it will immediately affect our economy,” Fuchs said.

Fuchs says he appreciates both sides and the outlook and there’s still a big chunk of people out there who aren’t letting rising costs stop them.

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“People are pushing to give their families the spaces they want. Whether it’s business or personal, I see people continuing to move forward,” Fuchs added.


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Inflation fallout hits construction industry in Saskatchewan


Inflation fallout hits construction industry in Saskatchewan

With such a volatile global market, there is no crystal ball to predict when prices might stabilize.

With that in mind, Niebergall believes that, relative to other metropolises across the country, now is a great time for families in Saskatchewan to build their dream home.

“Because the market here hasn’t been as busy as in other centers across Canada, local builders have built very close to demand, they’re just building what they literally sell.

© 2022 Global News, a division of Corus Entertainment Inc.

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