Building more single family homes and luxury condos in a Canada’s poorest province
CBC is reporting that new home construction is down 9% for the Cornwall, Charlottetown and Stratford region.
Summerside however is booming with 32% increase in new home construction.
The problem lies squarely on the shoulders of the municipal governments and greedy developers who are not in sync with the market. Summerside is experiencing growth because they are addressing the growth segment of the market.
For more than a decade the City of Summerside has encouraged development of housing for aging Islanders and those with disabilities which is the growth market. Aging boomers and retirees can find more reasonably priced accommodations in Summerside than Charlottetown.
Summerside passed a bylaw making accessibility mandatory for a percentage of new homes. Charlottetown has stalled the same legislation for years, despite statistics that 40% of seniors have disabilities and the greater Charlottetown area is a magnet for retirees.
In the meantime, Charlottetown and area is focusing on building $250,000 and up single family homes that are not energy efficient and $400,000 plus luxury condominiums. I’ve asked several real estate people for the reason why but they all decline to attribute this to more than “city hall”.
Anyone who reads the papers knows two things – the population is aging. Aging boomers don’t want to live in three story 3,000 square foot houses they raised families in. People are also concerned about the high price of heating and energy.
The greater Charlottetown area governments and developers are living in the past building energy inefficient homes that are too large and poorly built.
Take a swing around New Brunswick for cities in contrast with housing in tune with the new markets. Both Moncton and Fredericton are cities larger than greater Charlottetown that have learned to deliver market driven housing.
Moncton has two developments now dedicated to Green housing. For not much more than the standard new home in Charlottetown, you can buy a home in Moncton that uses 80% less energy. That amounts to a $3,000 savings every year. There are two Green projects underway in Moncton.
Fredericton Condo – under $200,000 for concrete building
Boomers like to leave snow shoveling and grass cutting behind. Fredericton has an active condo market that allows an easy migration at a reasonable cost.
You can buy numerous condo’s in Fredericton, many of them built to high standards with steel and concrete construction. Price? Less than $200,000 in most cases.
Prices in Charlottetown are $280,000 and up, mainly above $400,000.
PEI developers continue to build 3-story wood frame buildings that will not provide the same living experience for retirees.
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