REGINA — Despite a surge in building permits and housing starts, not every approved project in Regina is breaking ground immediately, reflecting a deliberate and strategic approach by local builders.
According to the Regina & Region Home Builders’ Association (RRHBA) 2026 market outlook, building permits jumped 38.2 percent year-over-year in 2025, while housing starts climbed nearly 38 percent, both above long-term averages. New home sales also increased, rising 18.4 percent to 508 units.
So why the apparent gap between approvals and construction?
A Market Slowing Down With Purpose
Regina is entering 2026 on a stable footing, but with clear signs of moderation. Population growth, a major driver of housing demand, is expected to slow to around one percent, one of the weakest rates in decades. Interest rates remain elevated, and financing costs, combined with high construction prices, are influencing builders’ decisions.
“Construction costs remain elevated compared to historical norms. Financing conditions are also playing a role,” explained Stu Niebergall, President and CEO of the RRHBA. “Builders are being thoughtful about aligning new starts with confirmed demand.”
The Hidden Lag Between Permits and Construction
Housing projects do not move instantly, and apartment developments in particular can take more than 16 months to complete, with planning often starting years in advance.
“It’s not unusual to have approved permits that don’t immediately translate into construction activity,” Niebergall said.
This lag is particularly noticeable as Regina transitions out of a period of heavy rental construction. Rental units accounted for nearly 65 percent of all units under construction as of late 2025, but that segment is expected to slow as population growth and absorption rates moderate.
A Decade of Careful Planning Shapes Today’s Market
Regina’s housing market has been shaped by deliberate restraint rather than boom-and-bust cycles.
“Regina has not experienced a rapid period of growth for a long time. For over a decade, builders have managed risk more deliberately,” Niebergall noted.
That long-term caution is helping avoid overbuilding. Even with 1,687 housing starts in 2025—the highest in five years—builders are sequencing projects carefully to match real demand rather than speculative growth. The RRHBA describes the trend as a “market reset, not a retreat.”
The Bigger Risk Isn’t Delays, It’s Conditions
Approved projects still represent future supply, but they may come online at a more measured pace.
“The risk is not a lack of approvals, but ensuring that conditions allow those projects to proceed in a timely and viable way so supply can keep pace with Regina’s continued population growth,” Niebergall said.
Even as growth slows, Regina’s population is expected to reach 294,000 in 2026, supported by steady employment gains and GDP growth.
What to Watch in 2026
For now, the gap between permits and construction is not a warning; it reflects a deliberate, data-driven industry.
“I do think this is an item that is worth paying attention to throughout 2026 and especially Q2 in case a new trend is appearing,” Niebergall said.
Strong fundamentals, a solid pipeline, and measured execution define Regina’s housing market today.
