Housing - Election 2024

The record population increase Moncton has experienced in the past four years has created a huge demand for housing. Developers are trying to build more units but are hampered by high interest costs and provincial taxation rules that hinder new construction. 

This has created an imbalance in housing supply and demand, with the current vacancy rate of 1.2 per cent at an historic low. Not surprisingly, the cost of building new and the cost to renters has risen significantly, causing an even greater affordability crisis.

In the past five years:

  • the average cost of a home increased by 65 per cent 
  • average rents have increased by 40 per cent 

Cities like Moncton have taken the unprecedented step of entering the housing sector. Moncton was a national leader when it committed $6 million to Rising Tide Community Initiatives to build supportive housing for homeless and marginalized individuals. Moncton has built a housing support program under the national Housing Accelerator Fund that includes more flexible zoning and incentives. But there is only so much fiscal room for a municipality to play in housing.

Estimates show that Greater Moncton has an immediate need for 3,286 new housing units, with an annual need moving forward of 1,826, including 900 units in Moncton alone. 

What Moncton needs

1 - Remove the provincial portion of HST on new multi-residential developments for at least two years. Nova Scotia and P.E.I. have done this and consequently, their number of housing starts per capita are between two and three times greater than in New Brunswick. Moncton City staff and developers have reported that while the market is in dire need of housing, projects have “stalled” in recent months.

2 - If provincial property tax is transferred to the City, the municipality would then be able to work with the province to lower the rate for non-owner-occupied dwellings (double tax) to be more competitive with our counterparts across Canada. As it now stands, the combination of regular residential and provincial property tax means renters of a new apartment in Moncton pay more than 40 per cent more per unit in property tax than renters in Halifax. This extra tax burden goes directly to their monthly rent costs.

3 - Partnering through infrastructure funding that will assist Moncton to open its emerging growth areas, which have been identified through the city’s Urban Growth Strategy.

4 - Establish an Urban Housing Strategy for New Brunswick’s largest urban centres that supports housing need and affordable housing targets.

5 - Housing for All timelines need to be accelerated and the financial commitment to housing increased. Provincial policies should be changed to allow integrated housing in current NB Housing segregated developments.

6 - More authority over some portions of the Community Planning Act to enable housing (i.e. density bonusing, inclusionary zoning).

7 - Allow Moncton to develop an incremental tax on underdeveloped land, especially in the downtown core. We need to create incentives to convince big landowners to build.

8 - Create a land bank of provincially owned land that can potentially be used for housing.

9 - Integrated housing development (with multi-levels of government support) in the downtown. This can be achieved through enhancing the power/ability of Housing NB.

10 - The next provincial government needs to be a willing partner on infrastructure and urban planning.

11 - Create a registry for short-term rentals and allow municipalities to develop a tax.

What party leaders say

Party leaders and local candidates were invited to a Special Council Meeting on Sept. 11, 2024. Each party leader was invited to address Council and to answer questions related to the City’s four election priorities.

Below are the questions and responses for each party related to housing.

Highlights of their review of Moncton Matters document

Green Party 

Represented by party leader David Coon, MLA for Fredericton South

  • Looking to mandate the new NB Housing entity to assist housing cooperatives to build more affordable housing. Desire to have NB Housing provide units to community at an increased rate as in the past to drive housing and ensure supply.
  • Looking to hold NB Housing accountable to targets and performance measures.
  • In relation to housing affordability, wish to alter the current property assessment system to be based on income and not assessment rate to reduce overall cost to renters and homeowners increasing affordability.  
  • Committed to join Nova Scotia and PEI in removing provincial sales tax for construction or renovations of multi-unit properties.  
  • Committed to advance on fiscal reform.  

Liberal Party 

Represented by party leader Susan Holt, MLA for Bathurst-East-Nepisiguit-Saint-Isidore

  • Will remove the provincial sales tax off new multi-unit residential development.
  • Looking to create additional integrated housing. 
  • Agree to regulate short-term rentals provincially.  

Progressive Conservative Party

Represented by party leader Blaine Higgs, Premier of NB and MLA for Quispamsis

  • Feels that NB should push back on accepting refugee and asylum seekers as there is a housing crisis.   

Responses to questions

1. Will you commit to removal of the HST on new multi-residential developments for a two-year period?

Green: Yes.  

Liberal: Yes. 

Conservative: No, we don’t believe there exists capacity within the industry to build more.  

 

2. Will you commit to removing all of the ‘double tax’ to bring New Brunswick rents more in line with other jurisdictions?

Green: Not at this time. The revenue that represents will be required to make major investments in priority areas.   

Liberal: Unclear.

Conservative: No commitment, but we are looking at the numbers in relation to other provinces to ensure the tax rate is equitable.    

 


3. Will your government revisit the Housing For All strategy to increase the amount of money set aside for affordable housing?

Green: Yes, for both requests of funding increase and expedited timeframe, but it must be done in partnership with communities.  

Liberal: Yes, the funding must be increased and timeframe reduced. We must also reduce the red tape in the process. 

Conservative: Yes, roadblocks exist and we need to move faster and municipalities will also have a role to play from a permitting perspective. Yes, we must increase funding for subsidized affordable housing in NB.

 

4. Will you allow Moncton to implement an incremental tax on undeveloped land?

Green: Yes, this is an excellent idea that allows for growth.  

Liberal: We have spoken about this and are willing to look at your suggestions as to how.  

Conservative: Yes, not sure how though.

 

5. Will you commit to a short-term rental review that includes a taxation system for municipalities?

Green: Yes.  

Liberal: No commitment but yes, we are willing to look at how based on our suggestions.   

Conservative: Yes, we need to look at solutions and this may be a revenue source.

 

6. Will you consider changes to housing policy to allow integrated developments in the current seven NB Housing segregated developments in Moncton?

Green: Yes.  

Liberal: Yes, integrated housing is the type of housing that we want to support, and we need to modernize legislation and bureaucracy to achieve these changes.  

Conservative: Yes, we have examples of process and legislative changes such as this that we have done. Communities may even be better suited to manage this.