Saskatchewan’s building boom signals bright economic growth

• Saskatchewan experiences a 47.5% increase in building permits for July 2024 compared to the previous year.
• Non-residential building permits surge by over 90% from June to July 2024, while residential permits grow by nearly-60% YoY
• Saskatoon's building permits rise by over 100% month-over-month and over 130% year-over-year.

Driving the news: Saskatchewan is witnessing a building boom with a 47.5% increase in building permits for July 2024 compared to July 2023. The province also saw a nearly-50% month-over-month growth from June to July 2024, ranking second among Canadian provinces in both categories.

By the numbers: Non-residential building permits surged by 92.2% from June to July 2024, while residential permits grew by 59.3% year-over-year.

• In July 2024 alone, building permits totaled $257 million.
• Saskatoon saw a notable rise, with building permits increasing by over 100% month-over-month and over 130% year-over-year.

The backstory: Saskatchewan's real GDP reached an all-time high of $77.9 billion in 2023, marking a 1.6% increase from the previous year, surpassing the national average. This economic growth has likely fueled the surge in construction activities.

Why it matters: This surge in building permits reflects strong economic activity and confidence in Saskatchewan's growth prospects. Increased construction could lead to more employment opportunities and further economic development.

**On the other hand:**Some experts suggest the increased activity is too-little, too-late. "Saskatoon's housing market has been under-supplied since June 2020," residential real state analyst Josh Buchanan told Insurely News in a text message. "In recent months, we would need about 900-1,300 additional residential units to come on the market overnight just to balance the market out. And this doesn't include the rental market. This increase in construction is needed and is 4 years late."

Looking ahead: Private capital investment in Saskatchewan is projected to hit $14.2 billion in 2024, a significant 14.4% increase over the previous year—the highest anticipated percentage increase in Canada.

• The numbers support a narrative for strong growth in the province's construction sector, backed by strategic government measures aimed at fostering a competitive business environment.