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A City Divided by Political Philosophies: Residential Development in a Bi-Provincial City in Canada
American Journal of Economics and Sociology, The, Jan, 2001 by Gura Bhargava
However, sometimes provincial locations have been chosen for sentimental reasons: those from Saskatchewan frequently settle in Saskatchewan locations, and those from Alberta almost exclusively settle in Alberta locations. Their choices have been primarily guided by a combination of practical rationality and substantive rationality. "Substantive rationality," a concept originating from Max Weber, refers to value orientation and regulation of actions and choices "from within" (Kalberg 1980). In the present case, it refers to a sense of pride, provincial identification and provincial loyalty.
Thus, the dual housing market in the provincially divided city of Lloydminster has emerged in response to various policies of both provinces. Until 1973, Saskatchewan dominated the housing market; since 1973, the balance has tilted towards Alberta. This duality has not only been perpetuated but has also proliferated over time through an ongoing favourable interpretation of Alberta's provincial policies by all players who construct this reality.
VIII
Data and Method
THE DATA IN THIS PAPER ARE DRAWN from the 1971, 1976, 1981, 1986, 1991, and 1996 censuses of Canada and municipal censuses collected by the city of Lloydminster until 1989. Other sources have also been used. These include information obtained from the Canadian Real Estate Association, Ottawa, and the Lloydminster Real Estate Board regarding the sale of single-family residential units in both provinces in Lloydminster according to price categories. The data regarding the construction of single-family residences, as reflected in the specifics of permits issued, were gathered from the city of Lloydminster. I have chosen to concentrate only on single-family residences because according to the 1996 census, 74.45% of all residential dwellings in Lloydminster are single houses; 95% of these are detached and 5% are semi-detached. Hence, this form of residence provides a sharper focus for the comparison of home ownership between the two locations. There is some indication that other forms of residences, such as triple xes and townhouses, tend to become rental units over time.
The indicators of the housing market in this study include:
a. The number of single-family units sold (or resold) on each provincial side of Lloydminster as reported by the Lloydminster Real Estate Board.
b. The average value of a single-family residential unit sold (or resold) on each provincial side of Lloydminster as reported by the Multiple Listing Service (MLS) and obtained from the Lloydminster Real Estate Board.
c. Production of single-family residences as indicated through building permits issued by the city of Lloydminster for such construction on each provincial side.
d. The average value of the permits issued for the construction of single-family residences on each provincial side, calculated on the basis of details provided by the city of Lloydminster.
The information derived from various censuses of Canada which has explanatory value includes bi-provincial distribution of family income in Lloydminster, bi-provincial differences in some characteristics of occupied residences, and the proportion of in-migrants from other provinces in each provincial location in Lloydminster. The personal income tax rates for the provinces of Alberta and Saskatchewan, obtained from Revenue Canada, are examined to make sense of the disparity in the distribution of family income between residents of Alberta and Saskatchewan in Lloydminster. This information is supplemented by the responses of thirty homeowners--fifteen each from Alberta and Saskatchewan--to a single open question: "Why did you choose the given location of your residence?" This probe into homeowners' reasons for choosing a particular location provides an invaluable insight into the nature of provincial housing markets in Lloydminster and helps to develop a comprehensive and balanced understanding of the issue.
