Housing crunch could threaten growth plans in Prince Albert, Humboldt

Despite a slight increase in listings, Guérette said inventory remains well below normal levels, with homes selling almost immediately, underscoring what she describes as a long-term structural supply shortage.

According to the latest SRA figures, Prince Albert’s benchmark home price now sits just above $270,000, which is up nearly three per cent year-over-year. Humboldt’s benchmark price has climbed to roughly $327,000, marking an increase of almost 10 per cent over last year.

“It’s particularly very impressive to see Humboldt in such a tight market,” Guérette said.

Guérette noted Humboldt currently has just 2.3 months of housing supply available, 60 per cent below last year and 76 per cent below the 10-year average. Months of supply refers to how long current inventory would last if no new homes were listed for sale.

The pressure in Humboldt is tied largely to anticipated industrial and mining expansion connected to the BHP Jansen potash mine project, which is expected to begin production in 2027.

A housing market assessment commissioned by the City of Humboldt last year found the region could require more than 1,100 additional dwelling units, up to 700 additional development lots and hundreds of new multi-unit and rental housing options over the next 15 years if projected industrial growth materializes. The report warned the city would need to actively attract developers and builders while ensuring a mix of market-rate, entry-level and affordable housing options.

In Prince Albert, officials are facing similar concerns as economic optimism grows around the redevelopment of the former pulp mill site east of the city, among other projects. The former mill was recently acquired by BMI Group, which plans to redevelop the site into a multi-tenant industrial hub focused on forestry, energy, manufacturing and critical minerals.

“The gap identified in our housing needs assessment is significant, and we do take it seriously,” said Michael Nelson, acting director of community development for the City of Prince Albert.

He said increased construction costs, labour issues and market uncertainties making developers cautious, are all reasons why inventory is tight.

Nelson said the city is reviewing development regulations and updating zoning requirements, removing barriers to streamline approvals, working to bring more developable land online and collaborating with builders and non-profit groups to increase supply.

“Focused efforts will be on shovel-ready projects and different infill developments,” he said.

Nelson added Prince Albert’s most urgent needs are “entry-level ownership and rental housing,” along with what planners often call “missing middle” housing or options between single-family homes and large apartment buildings.

Still, officials acknowledge supply has not kept pace with demand.

“The demand has risen quickly due to the population growth, immigration, and most importantly, the economic activity in our region,” Nelson said. “Supply hasn’t fully caught up, but we’re putting the framework tools in place to accelerate housing delivery over the next few years.”

The city is working with Wallace Insights to develop a housing implementation strategy; it’s the same consultant that developed the housing needs assessment for Prince Albert.

Guérette warned the situation could worsen if communities fail to accelerate housing construction.

“Economic growth is 100 per cent tied to real estate,” she said.

“You literally need more product, so you’re building homes, but you also need people to buy new homes. If the price of a new home is getting too expensive relative to the current housing stock, then not enough people are buying new, and then they’re not adding enough inventory into the market.”

She argued municipalities need to prioritize faster approvals and remove barriers for developers willing to build.

“I think the moral of the story for every municipality here is they need to get out of their own way,” she said. “This is not the time for roadblocks. We need more homes and faster.”

“I think municipalities should very much focus on affordability – that is a direct correlation to your inventory.”

-With files from CKOM

—

panews@pattisonmedia.com

by paNOW Staff

Housing crunch could threaten growth plans in Prince Albert, Humboldt

What's Trending