Building permit activity for the first half of 2025 indicates that the number of new housing starts has soared to record-high levels. Between January and June, the total construction value was $177.6 million, well above the 5-year average.
The Fredericton development community continues to respond to the city’s significant population growth and tackle the current vacancy rate of 0.9% by delivering new housing supply. With this response to growth, Fredericton ranks 3rd in the country for dwellings completed proportional to population growth (Statistics Canada, New Housing Market Report). The total value of residential construction in the first six months of 2025 was $147.7 million, representing over 83% of total construction and setting an all-time record.
The strength in Fredericton’s residential sector has resulted in 682 new housing starts, representing more housing starts halfway through 2025 than all of 2024. This aligns with the ambitious yearly targets set out in the City’s 2025 Housing Needs Assessment. At over 93 per cent of new housing starts, multi-residential development is driving new housing starts to support a more compact and complete community.
“Meeting current and projected housing needs is critical to ensure a diverse economy and vibrant city far into the future” said Councillor Jason LeJeune, Chair of the City’s Economic Prosperity and Growth Planning Committee. “As more people choose to live in Fredericton, I’m pleased to see the local development community responding to our newfound levels of growth with record breaking housing starts.’’
This development is in line with the City’s Growth Strategy and Municipal Plan, with 80 per cent of new housing starts occurring within designated growth areas. Council and the development community are working together to ensure Fredericton’s growth is planned, environmentally sustainable and functional; with infill development taking advantage of already existing infrastructure and amenities and suburban development occurring in areas targeted to receive substantial growth.
The numbers were presented to members of the Economic Prosperity and Growth Planning Committee by staff from the City’s Planning & Development Department.