Housing is an ongoing issue across the province these days, and in Yorkton we have certainly seen the effects of it as rental vacancy rates have remained tight for months and housing prices have climbed substantially.
The effects of the two occurrences are people are starting to be squeezed in terms of housing options here.
The City of Yorkton is aware of the situation, with its economic development office undertaking a study to get a local snapshot of the situation.
From there the City established the Yorkton Housing Committee, which brought together those involved in housing in the city to develop a plan for the community.
A large focus for the YHC was to create a plan which would dovetail with the announced provincial housing strategy which had been announced, although details were not initially included. The hope was that the Committee could lay the groundwork so a project under the provincial program could be fast-tracked once details were forthcoming.
Those details were released recently as A Strong Foundation - The Housing Strategy for Saskatchewan 2011-12 and the 2011-12 Provincial Action Plan was unveiled by the province.
It's too early to gauge the plan. It will take time to see how municipalities and developers pick up on it, and whether it effectively creates affordable housing over the next half decade.
There is no doubt the program, with access to four per cent financing. Headstart on a Home will finance construction of at least 1,000 new, entry-level homes over the next five years. Builders and developers will be eligible for loans of 90 per cent of the construction cost of the homes, including land, at an interest rate of four per cent.
That will stimulate development.
But the outstanding question will of course be what one's definition of affordable is.
The target price for the homes will be at or below the MLS average for the respective municipalities, likely ranging from $180,000 to $300,000, according to the province.
If you think of entry level as first time homeowners, the lower end of the target spectrum is still higher than many couples working lower paying jobs in this province can afford.
Certainly the numbers might crunch if a couple were debt free, highly unlikely in a world based on large screen TVs at 10 per cent down. And there is the ability to manage a down payment.
As it is, rents are trending generally upwards at percentages in excess of what the private sector is offering in wage increases, which simply cuts into the ability to save for the down payment.
There is a hope new housing will open older, lower-priced homes and rental units, as people move up in home ownership.
That might happen, but rentals are jumping yearly, if not every six months for most, creating issues in terms of rental affordability.
Here in Yorkton we see the issues manifesting themselves today, and also sit on the precipice of a boom that could be caused by the announcement of a new potash mine close by, which would exacerbate the problem.
The question is whether the new provincial program can be effective in ensuring safe, affordable housing for all. It's a tall order, but also a critical one.
