Lack of inventory behind boom in new housing

A lack of existing houses on the market was the main reason homeowners built or bought newly constructed homes in Moose Jaw from 2003 to 2007, according to a recent city survey.
In late 2007 to early 2008, the city clerk's office, which handles local land administration, surveyed 178 homeowners who had bought or built new homes between the years of 2003-2007.
In total, 99 responded to the survey.
During Monday's executive committee meeting, Steven Schiefner, city clerk, told councillors one of the more interesting aspects to the survey was that, although people often say the motivation for building/buying a new home locally is due to low interest rates, the survey showed that most newcomers (29.5 per cent of respondents) built due to a lack of suitable housing inventory.
Only about eight per cent listed low interest rates as the reason they bought or built new.
Schiefner said it was this lack of inventory that led the city to begin its housing incentive program in 2003.
Through the program, would-be owners were encouraged to build locally by paying zero property taxes the first year after purchasing a lot. Over the next six years, owners would pay slightly more taxes until finally they were on par with the rest of Moose Jaw.
Respondents listed that incentive program as the second highest motive for their building or buying new homes, at 25.9 per cent. Schiefner said the statistics seem to vindicate the city's decision to start that program, which the city discontinued in 2006, since the current market doesn't demand such an incentive.
Coun. Brian Swanson said he realizes the new housing market has picked up from 10 years ago and he appreciates the city doing a survey. However, he said there are Saskatchewan communities whose residential building rates are still higher than Moose Jaw's.
"It's good, but it could be better."
Coun. Al Schwinghamer said the survey provides the city with valuable information when making housing development decisions in the future.
Due to lack of a surveying department and out-sourcing funds, Schiefner said his department's staff studied material on surveying and conducted the project itself.
He added it would be interesting to conduct the survey again in the future and see how the statistics change.

Carter Haydu can be reached at 691-1265.

For more, pick up Tuesday's Times-Herald.