Gaps in Moncton housing supply include both large and small rental units, report says

Moncton needs more rental housingunits, a greater variety of unit sizes for individuals and families and more accessible housing, a report prepared for the city concludes.

The report points to growing problems with affordability in a region that Statistics Canada reported was the fastest growing metropolitan region in the country.

"On average, homes in the ownership market are not affordable to households with moderate incomes or below in Moncton," says the report, which considers $90,000 amoderate income for a household..

"These data emphasize the need for more affordable home ownership options as well as more rental housing options which are affordable to these households."

The 113-page report prepared for the city by SHS Consulting examined data affecting the supply and demand for housing, including population growthand income.

The report found:

• The average home price in the greater Moncton-area climbed65.4 per cent between 2017 and 2022, reaching $304,700.
• Average rent increased 38 per cent between 2016 and 2022, higher than inflation, which was 18.6 per cent, and household income growth, which was 17.8 per cent.
• Renters were significantly more likely to face housing affordability problemsthan homeowners, at 33 per cent for renters versus 10 per cent for ownersin 2020.
• There were2,687 people on a provincial subsidized housing wait list in the Moncton region. While47.2 per cent arenon-elderly singles,67.4 per cent ofsubsidized and affordable housing units are mandated for families.

The report says the rapid increase in the cost to buy a home likely has resulted in more people renting in an already tight market.

Dalton Wudrick, a senior consultant,helped prepare the report and presented it to city council.Wudrick said they found three gaps that need to be addressed.

First, there is a general need for more rental housing because ofgrowing demand for apartments and a vacancy rate that's remained below the "healthy" three per cent mark for several years.

"Construction is not meeting rental demand," Wudrick told council.

Second,greater diversity of unit sizes is needed. The report says most rental units have two bedrooms, though there's a greater need for smaller units, as well as larger units to house families.

"There are way more large households than there are large rental units," Wudrick said, saying that's particularly an issue for immigrants who tend to have a larger household.

Third, the report says there's a need for accessible and supportive housing for peoplewith a disability or mental health problem. Addressing that gap, the report says, will require working with the province and local service providers.

The report saysthere were more than 4,300 households with a member with a physical disability in 2021. That figure increased by 44 per cent since 2016. Households with someone with acognitive disability increased 59 per cent.

Wudricksaid action is needed because city staff projectMoncton's population to increase by almost 50 per cent by2046, driven largely by immigration ormigration from other provinces.

Moncton Mayor Dawn Arnold said the data will be useful as the city plans how to grow and seeks federal affordable housing funding.

"I think there is an impetus right now by the federal government to ensure that that money starts flowing to communities such as ours that are in such desperate need," Arnold said in an interview Monday.

City able toenticedevelopers

Several councillors askedWudrickquestions abouthow to boost the housing sector.

Wudricksaiddevelopers are seeking to make money and will be enticed to build if the cost to do so is favourable.

The city appears to be doing well in that regard, he said, pointing to numerous apartment buildings under construction around the city.

He said affordable housing is generally a provincial responsibility, but the city has a role in land use planning. It could also try to get developers to work with non-profits or co-ops.

"It'shard to do because their bottom line is affected," Wudrick said of developers.