‘I feel like I should be in a different spot’: Homeowner hopefuls face price hikes in Fredericton

Fredericton, NB—Aspiring homeowners in Fredericton are finding it increasingly difficult to enter the housing market as property prices continue to climb. The median home sale price in the city has surged from \$210,000 in 2019 to nearly \$388,000 in 2024, marking an 85% increase over five years.

This sharp rise in prices has significantly reduced housing affordability. In 2019, a household earning \$100,000 could afford 93% of listings; by 2024, that figure had dropped to just 29%. For households earning \$60,000, the percentage of affordable homes plummeted from 60% to a mere 3% over the same period.

The rental market offers little relief. Renters with an annual income of \$40,000 could afford 47% of available units in 2019, but only 16% by 2024. This decline in affordability is compounded by a rental vacancy rate below 1%, making it increasingly challenging to find affordable housing options.

Several factors contribute to the escalating housing costs. Fredericton's population has grown by approximately 14% since 2021, partly due to an influx of residents from larger cities seeking more affordable living. This increased demand, coupled with a limited supply of starter and affordable homes, has intensified competition and driven up prices.

The city's Housing Needs Assessment report projects a need for an additional 19,680 housing units by 2044, including 6,010 affordable units, to meet current shortages and future demand. Despite record housing starts in recent years, construction has not kept pace with the growing population, exacerbating the housing crisis.

In response, local officials emphasize the urgency of addressing the housing shortage. Councillor Jason LeJeune, a member of the city's housing committee, highlights the challenges faced by first-time homebuyers and the need for increased housing supply to ensure Fredericton remains a livable city for all residents.