Moncton has second-best construction year amid high demand for housing

Two apartment buildings towering over Moncton, N.B., with one of the buildings still under construction. (Alana Pickrell/CTV Atlantic)

Moncton, N.B., issued a total of $341 million in building permits in 2023, recording its second-best construction year.

According to a news release from the city, 2023’s numbers come second only to the $366 million in building permits in 2022.

RESIDENTIAL DEVELOPMENTS

The city says residential development accounted for more than 59 per cent or $204 million of the permit activity, resulting in 1,177 new residential units.

Moncton’s mayor, Dawn Arnold, said the city continues to show its commitment to growth.

“The impressive residential sector performance underscores our city’s appeal as a vibrant and thriving community,” she said.

According to the city, 1,092 housing units have been added to its downtown since 2017.

Residential permits for the area made up 20 per cent of the city’s total permits for 2023, an increase of 1.7 per cent over 2022, and resulted in 243 new housing starts.

Commercial and industrial sectors in Moncton received $76 million across 156 permits, the release says.

HOUSING AFFORDABILITY

On Jan. 5, the city announced the municipal, provincial, and federal governments would spend $6.7 million to create “rapid housing.”

The housing projects aim to build affordable homes and apartments for people experiencing homelessness in Moncton.

The city and the federal government announced they would spend $15.5 million to eliminate barriers to building housing faster in November 2023. The funding, under the Housing Accelerator Fund, would fast-track 490 housing units over the next three years to address Moncton’s housing crisis.

A SELLER’S MARKET IN 2024

Some real estate professionals believe 2024 will be a seller’s market in Moncton because of the low supply and high demand for housing.

One realtor, Mandeep Singh, suggested housing prices will rise as a result.

The chair of the New Brunswick Real Estate board, Mike Power, said he believes housing prices are holding where they are.

“Moncton's downtown revitalization is gaining momentum, with these notable projects contributing to the city's economic vibrancy. We look forward to further enhancing our urban landscape in 2024,” says Kevin Silliker, the City of Moncton’s director of economic development.