Will it get easier to find a place to live on P.E.I. with housing projects on the rise?
'The planning department is going to see record numbers this year'
With vacancy rates hovering around zero per cent, these are tough times for anyone looking for a place to rent.
But officials with Charlottetown and some of its surrounding communities say multi-unit housing projects are in the works and planning departments are extremely busy with applications.
"The planning department is going to see record numbers this year," said Coun. Greg Rivard, the chair of planning for Charlottetown.
Rivard said they expect 2019 to be the biggest year ever for applications and projects underway.
"There certainly is a need but again I think developers are meeting the need as much as possible," he said.
Rivard said the city has about 1,200 units right now that are either approved, or for which applications are being assessed.
Supply will catch up
Stratford has several projects in the works now and more being proposed.
"In 2018 we saw quite a spike in numbers," said Kevin Reynolds, director of planning for Stratford.
Many of those projects are still in the works right now, as larger buildings often take at least a year to build.
Reynolds said projects in the works now should eventually help those people looking for a place to live.
"When you add another 150 units to your community that's certainly going to help people with accommodations," Reynolds said.
He said more housing means rent prices should go down.
"We know people are struggling with trying to find affordable accommodations," Reynolds said.
He said he witnessed a similar housing shortage about 10 years ago.
He expects supply to catch up to need.
"So by the fall of this year, we'll see a significant number of more units within the community available," Reynolds said.
Cornwall also building
Cornwall has seen a lot more housing projects in the last couple of years. The town gave out about 130 building permits in both 2017 and 2018. That's more than double 2016 numbers.
"We have a lot of interest in the multi-unit developments right now," said Dean Lewis, manager of planning and development.
He said they have a number of projects in various stages currently.
Lewis said when the community announces projects, people sometimes show up at the town hall looking to get on the building's wait-list.
"There's still a need for sure," he said.
Lewis expects current projects to make a significant difference.
"Some of the developments that are coming will hopefully satisfy the need right in the town, but hopefully attract people to the town."
He said the town is trying to monitor how many units are enough.
Staff and councillors with the planning departments of Charlottetown, Stratford and Cornwall all talked about the shortage of trades people as a challenge.
"They have the plans. They have the property. They can't get anyone to build it," said Lewis.
Not a quick fix
Chris Janes, senior analyst with the Canada Mortgage and Housing Corporation, said although projects are underway he expects vacancy rates to stay around zero or one percent this fall.
"We don't anticipate much of a change," Janes said.
He said population growth has put an enormous amount of pressure on rental units.
CMHC knows developers are reacting to the shortage but said renters will have to wait awhile to see a big difference.
"Nothing significant until we go beyond 2020," he said.