The City of Bridges, aka Saskatoon, is known for its prairie beauty and eight bridges that span across the South Saskatchewan River. Try a Saskatoon berry or stop at one of our MANY local restaurants – we are known as the Paris of the Prairies for a reason!
In real estate, there is this saying, “Live where you want to live and invest where the numbers make sense.” Well, in Saskatoon, they make sense.
Learn a Little Bit About Saskatoon
The largest city in the province, Saskatoon, serves as the economic and cultural hub for Saskatchewan. Based on the 2016 consensus, Saskatoon’s population reached 246,376 people (Fallon, n.d.). From 2018-2019, Saskatoon’s population grew 2.2 percent, making it the fourth fastest-growing city in Canada (Statistics Canada, 2020). The median age in Saskatoon is 35.8 and the largest age cohort is between the ages of 25-29; 51.03 percent of the population is female, and the remaining 48.97 percent is male. The majority of Saskatoon residents (50.38 percent) have a post-secondary degree, certificate or apprenticeship, while 33.18 percent have a high school diploma, and 16.44 percent have no certificate. In post-secondary schooling, the most popular field of study is business administration (Fallon, n.d.).
The median household income before tax in Saskatoon is $78,001 while the median after-tax income is $68,471 (Fallon, n.d.). The largest percentage of households make between $30-$59K, while the second-highest percentage of households make over $150K. The largest industry by business count is real estate, while the smallest industry by business count is utilities. In Saskatoon, the largest industry by labour force is health care and the smallest are utilities. The largest industry by occupation is sales and services, while the smallest industry by occupation is natural resources.
As of 2016, there were 65,875 homeowners in Saskatoon and 32,685 renters (households). The majority of residents (31.40 percent) opt for a property with four or more bedrooms, 31.29 percent have three bedrooms, 25.09 percent have a property with two bedrooms, and 12.22 percent are in a property with one or less bedroom (Fallon, n.d.). Because Saskatoon is not a large metropolis, demand for public transportation is not as apparent. Therefore, 80.45 percent of individuals over the age of 16 are vehicle drivers. As a result, parking is essential at properties.
Housing Prices
In January 2021, the MLS Home Price Index (HPI) was up 4.7% and the average home was going for $305,800 to $320,300.
According to RE/MAX, the Saskatoon’s average housing price was $331,359 in 2019 and rose 5% to $346,239 in 2020. RE/MAX was experiencing a balanced market in December 2020 but is expecting a shift to a seller’s market in early 2021. Similar to 2020, housing prices are expected to increase an additional 5% in 2021 (RE/MAX, 2020).
Check out our blog on “What You Need to Know Before You Begin Investing in Real Estate” to learn more about buyers, sellers, and balanced markets.
Employment
As of January 2021, Saskatchewan has the lowest unemployment rate (7.2%) across Canada and has remained competitive amidst the pandemic. In comparison, Saskatchewan was two points below the national average of 9.2%. In December 2020, it was reported that Saskatoon’s unemployment rate was 8.1%. Now, what were the numbers pre-pandemic? In January 2020, Saskatchewan’s unemployment rate was 5.9% while Saskatoon’s was 5.8%.
What does this mean for investors?
Low unemployment is FANTASTIC for investors because it signals that consumers and tenants have higher buying power and more money to spend. Additionally, there is greater access to jobs meaning there is a slimmer chance of tenants defaulting on rent.
Now, let’s get a feel for the Saskatoon economy by learning about the key industries.
Key Industries
Agriculture:
The province is known for its vast prairie landscape. In fact, Saskatchewan accounts for 40% of Canada’s cultivated farmland. “Saskatchewan supplies more than one-third of the world’s exports of durum wheat, we’re the top export of lentils and dried peas and more than half of Canada’s canola is produced here (Baczuk, Agriculture & Agri-value, n.d.).” Notable agriculture companies in Saskatchewan include:
- Sunrise Foods International Inc. – Located in Saskatoon, Sunrise specializes in the trade of conventional and organic grains
- AGT Foods – One of the world’s largest suppliers of food ingredients, staple foods, and value-added pulses
Mining and Energy:
“Saskatchewan is ranked 1st in Canada and 3rd in the world for mining investment attraction. Saskatchewan produces more than one-third of Canada’s primary energy from renewable and non-renewable sources (Baczuk, n.d.).” Notable mining and energy companies with headquarters in Saskatoon include:
- Cameco – Accounting for 18% of uranium production worldwide, Cameco is the world’s largest publicly traded uranium company
- Nutrien – Employing over 20,000 individuals, Nutrien is the world’s largest producer of potash and the world’s third-largest producer of nitrogen fertilizer
Technology:
“Dubbed the ‘Silicon Prairie,’ Saskatoon is home to a vibrant technology community. It is estimated the tech sector has added approximately $2 billion in GDP to the provincial economy, making up 2.4% of total provincial Real GDP (Baczuk, Technology, n.d.).” In the first half of 2019, $32 million in venture capital was invested in Saskatchewan’s tech industry. Notable tech companies with headquarters in Saskatoon include:
- Vendasta – End-to-end commerce platform allowing small businesses to compete amongst large organizations
- 7-Shifts – All in one scheduling, time-tracking, and communication software for restaurants
Retail & Wholesale
“The Saskatchewan retail and wholesale industries include approximately 10,300 companies with combined annual revenue of $46.4 billion in 2018 and employed approximately 93,200 people. The industry is also a significant contributor to the economy, with $7.1 billion in GDP in 2018 (Baczuk, Retail & Wholesale, n.d.).” Notable organizations with headquarters in Saskatoon include:
- Federated Co-operatives Limited – One of the largest wholesalers in Western Canada employing over 2300+ individuals and supplying over 1500+ retail locations
Entertainment
Although our winters are cold, our summers are lively! There isn’t a summer weekend that goes by where local activities or festivals aren’t happening. Start the summer off at the Saskatoon Jazz Festival and listen as the downtown core is filled with the sound of trumpets and bass guitars. Next, experience the Saskatoon Folkfest to try cultural foods, dances, music, art, and many more from a bunch of different countries around the world! Following Folkfest, don’t forget to visit the Saskatoon exhibition to fill up on elephant ears and spudnuts. Visit street fairs and farmers’ markets to chat with and support local artisans and farmers. Finally, end the summer by watching the Nutrien Firework Festival at Riverlanding.
Conclusion:
Have we convinced you to invest in Saskatoon yet? Low unemployment rates, leading Canadian industries, low housing prices, local activities, and high median household incomes – what’s not to love?!
We love our city! If you are thinking about investing in Saskatoon, email us and we can connect you with a mortgage broker and realtor. Maybe you want to continue talking about the local culture or neighbourhoods to invest in, email us at professionals@realpropertymgt.ca
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Works Cited
Baczuk, J. (n.d.). Agriculture & Agri-value. Retrieved February 2021, from SREDA: https://sreda.com/business-in-saskatoon/key-industries/agriculture-and-agi-value/
Baczuk, J. (n.d.). Mining & Energy. Retrieved February 2021, from SREDA: https://sreda.com/business-in-saskatoon/key-industries/lifestyle-copy-2-copy-copy/
Baczuk, J. (n.d.). Retail & Wholesale. Retrieved February 2021, from SREDA: https://sreda.com/business-in-saskatoon/key-industries/retail-and-wholesale/
Baczuk, J. (n.d.). Technology. Retrieved February 2021, from SREDA: https://sreda.com/business-in-saskatoon/key-industries/technology/
Fallon, A. (n.d.). Saskatoon. Retrieved February 2021, from Townfolio: https://townfolio.co/sk/saskatoon/overview