Development fueled by multi-unit starts doubling 10-year average
The City of Fredericton issued building permits for over $187 million in development activity in 2021. The record setting numbers are largely due to fast paced residential growth that reflects the City’s population growth projections and is consistent with its urban plans.
The total value of residential construction in 2021 was $134.7M, exceeding last year’s record total by more than $38M. This is more than double the 10-year average. These numbers represent permits for 799 new housing units in 2021, a combination of both multi-units and single detached dwelling units.
More than 698 of those units are new apartment and townhouse units which is a new record for activity in the City. The positive upward trend in new single family detached home builds also continued with 101 units under construction. This is the highest level of new building activity for this type of development in over a decade.
“Responding to the demand for housing has truly been a community effort,” said Coun. Jason LeJeune, Chair of the City’s Economic Vitality Committee. “These record-breaking numbers show that with collaborative work between the City, developers, suppliers, and builders, we’re able to keep pace with the expected growth over the next few years.”
The year-end statistics also show the beginning of recovery from the COVID-19 pandemic in the commercial construction sector. At the end of December permits for construction of more than $21M of development were issued, below the 10-year average, but up $4M from 2020.
Statistics also show that overall growth continued to be centered around growth areas identified in both the 2017 Growth Strategy and the 2020 Imagine Fredericton Municipal Plan. Strategic urban growth provides Fredericton with the opportunity to grow in a smarter more functional way, infilling the existing urban areas near major amenities like the Universities, close to the City’s extensive active transportation networks, and close to all other amenities.
“More and more people are choosing to call Fredericton home,” added Councillor LeJeune. “I’m pleased to see the development community in Fredericton providing housing options for residents that reflect the needs of a growing city.”
Imagine Fredericton: The Municipal Plan was adopted in January 2020. An outcome of the City’s extensive planning process Imagine Fredericton and the 2017 Growth Strategy. The Municipal Plan provides a bold vision for Fredericton and recognizes that our growth will be increasingly urban over the next twenty years. This is reflected in the development statistics which show significant growth in our downtown and urban core.
Despite the very positive increases in residential construction, demand for housing remains exceptionally strong and sustained levels of high construction activity will be required to meet demand. The City is being proactive in responding to the housing needs of the community. In the fall of 2021 the Housing Needs Assessment was completed to better understand Fredericton’s existing housing supply as well as our immediate and future needs. The Affordable Housing Strategy is now in development and is expected to the completed in the coming weeks. This will provide the City with a future oriented strategy to address housing challenges.