Housing starts are not keeping up with demand as the Northeast Avalon saw an influx of some 7,000 people last year.
The growth was primarily driven by newcomers—including temporary foreign workers, and foreign students.
The Atlantic Economic Council’s Patrick Brannon says despite the growth in population, there were only enough housing starts last year to address one quarter of that growth.
“There are definitely some challenges to get more housing built. That’s really needed,” says Brannon.
Brannon admits, higher interest rates are a factor in keeping housing starts down and, “it’s a big factor in apartment construction because it’s more expensive to build.” He says affordability is also being affected by higher interest rates and greater demand. “It’s more challenging for people to find affordable rent, so there’s lots of challenges with fast population growth—there’s lots of benefits too – but the housing is a piece that we need to get ready.”