Co-operative housing tackles Canada’s home-ownership crisis
Co-operative housing is emerging as a promising solution to Saskatchewan’s growing housing crisis, which has been exacerbated by recent rising rental costs, lack of affordable options, and increasing demand. Unlike traditional rental or ownership models, co-operative housing emphasizes community control, affordability, and long-term stability, making it a sustainable option.
Saskatchewan is facing a housing affordability problem. Data from the Canada Mortgage and Housing Corporation (CMHC) highlights that rental prices have been steadily increasing, with the average rent for a two-bedroom apartment in Saskatoon rising to over $1,200 per month in 2023. Regina has seen similar trends, with vacancy rates plummeting as demand for rental units grows. According to a 2023 report by the Saskatchewan Realtors Association, housing prices in the province’s major cities have surged by 15% over the last five years, outpacing income growth for many households.
In addition, rising immigration and internal migration have intensified the demand for housing. According to Statistics Canada, Saskatchewan’s population grew by 2.1% between 2022 and 2023, with newcomers settling primarily in urban areas. This growth, while beneficial for the economy, has placed additional strain on a housing market that is already struggling to keep up with demand. As rental prices continue to increase, many families, low-income individuals, and marginalized communities are finding it harder to secure stable and affordable housing.
Co-operative housing (co-op housing) is an alternative housing model that operates on a non-profit basis. Residents in co-operative housing are members who collectively own and manage the housing units. Instead of paying rent to a landlord or mortgage to a bank, members pay a housing charge set collectively to cover the costs of maintaining the property. Importantly, co-op housing prioritizes affordability, as it removes the profit motive that often drives rent increases in the private rental market.
Co-op members also have a say in decision-making processes regarding the management of the property, creating a sense of community and shared responsibility. The model allows residents to have more control over their housing situation, fostering long-term stability and reducing the likelihood of displacement due to rent hikes or housing market fluctuations.
Co-operative housing is a housing model that has a long history in Canada, with over 2,200 housing co-operatives providing affordable homes for more than 250,000 people nationwide, according to the Co-operative Housing Federation of Canada (CHF Canada). In Saskatchewan, there are several co-operative housing developments, including in Saskatoon and Regina, that serve diverse populations, including low-income households, seniors, and people with disabilities.
A 2019 report by CHF Canada found that co-operative housing in Canada consistently provides below-market housing charges, making it an essential part of the affordable housing landscape. The report notes that the average housing charge in co-ops is often 20-30% lower than comparable private rental units, and these savings are passed directly on to residents. Co-operative housing also tends to provide better housing security, with residents staying in their homes for longer periods compared to private rentals.
Given the growing housing challenges in Saskatchewan, expanding co-operative housing could be a key strategy to address the province’s affordable housing needs. Co-operatives offer an effective way to protect residents from rising market rents while also fostering community engagement and ownership.
To support the growth of co-operative housing, governments at all levels must play a role. This includes providing financial support for new co-operative developments, preserving existing co-ops, and introducing policies that incentivize non-profit and co-operative housing models. By prioritizing these alternative approaches, Saskatchewan can take significant steps toward addressing its housing crisis and ensuring more people have access to stable, affordable housing.