Portage la Prairie faces a pressing need for new single-family homes, creating a competitive seller's market where demand far outstrips supply, according to local realtors.
City Councillor Preston Meier, Chair of City Planning and Economic Development, outlines the municipality's role and limitations in spurring new construction while highlighting upcoming efforts to attract developers.
Realtors have reported low inventory, particularly for homes in the $300,000 to $500,000 range, driving intense competition and sales prices above asking. This environment leaves buyers with limited options.
Councillor Meier emphasizes City Council’s specific function is facilitating development, not acting as a developer itself.
City's role: infrastructure
"We're not developers. We're not real estate people; we're not investors in property for resale, rent, anything like that," Meier states clearly.
"I think what Council does have is they've got some tools that they can use to incentivize different types of development, and I think our biggest investment is really in the infrastructure that goes with that. Our role is to make sure that we've got the roads, the sewers, and the water hookups."
Meier explained that private investors drive building decisions based on market returns.
High construction costs and limited available land within city borders often make higher-density projects like duplexes or triplexes more financially viable than single-family homes for developers.
"We're not going to get in the way of a developer or an investor that wants to invest in that project as they see fit to have that equal return back on the investment," he notes.
Limited tools and focus on infill
While acknowledging the City cannot control private investment decisions, Meier highlighted one specific incentive within Council's purview: a developer rebate for infill housing. This targets vacant lots within the existing city footprint.
"So, what we can do in addition to the infrastructure is talk a little bit about the development rebates. It may not be hundreds of thousands of dollars, but it's something that Council can do that's within their control in order to make that happen," he says, adding that this is something that would be considered on a case-by-case basis.
He also mentioned tools like tax increment financing or grants in lieu of taxes could be considered by Council for larger, specific projects if vacancy rates for certain housing types are critically low, but stressed these are assessed on a case-by-case basis. Expanding the city's borders to create new land for development is not currently on the table, as boundaries have remained unchanged since 1908, with development focus directed towards infill and addressing derelict properties.
Developer day aims to showcase opportunity
A key initiative to attract building investment, including potentially more single-family homes, is the upcoming third annual Developer Day.
Meier specifies what the day is all about, saying, "We invite a number of developers from across the province, meet with them, talk a little bit about our bylaws, our plans, our vision for our future and then we actually take them for a tour throughout the city and the RM to show them exactly what's available."
Meier believes showcasing Portage's available land, infrastructure, and amenities like recreation, health services, and schools is crucial.
"It's really neat when you have conversations with these developers because it really opens their eyes to the fact that Portage is just a really perfect place to invest right now," he notes.
Despite these municipal efforts, the fundamental challenge of attracting sufficient private investment to meet the demand for new single-family homes in Portage la Prairie persists, underpinning the current market pressures identified by local realtors.
The success of initiatives like the infill rebate and Developer Day will be closely watched by potential homebuyers facing limited choices.