As the city of Saint John continues to grow, so does the demand for housing, according to a new residential market study.
Jeff Cyr with Develop SJ says the in-depth study predicts the city could, and should build 1,500 new residential units over the coming decade.
If all those projects move forward, Cyr says that could mean $130,000,000 in a new residential tax base for the city.
To date, the document has been shared and used by between 80 and 100 developers, builders, and realtors.
He says the document is crucial for growth, especially when the vacancy rate is at an all time low.
“While there has been a strong demand uptown a lot of that has been filled. We’ve seen our rental vacancy rate go from 12 per cent to 3 per cent over the last four to five years, and any new rental stock that’s been built in the last 20 years is down below 1 per cent,” he said.
Residents can expect more constructions and development in the coming years, with several projects already approved such as the new Telegraph building on Canterbury.
The study shows new trends, including an increasing number of newcomers settling in the city.
“As opposed to what’s happened in the last 40 to 50 years where we’ve seen people moving to the outskirts of the city, about 80 per cent of immigrants tend to settle in the city of Saint John, both when they move here and long-term so there’s going to be an increased demand for housing in the city itself,” he said.
Cyr says the study also pinpointed where certain nationalities are moving to in Saint John, like Millidgeville.
Cyr says the demand is also largely being driven by baby boomers who are choosing to move into the city core.
“As the baby boomers age and become empty-nesters, unlike their previous generation, they’re choosing not to age in place and they’re looking to downsize, and a lot of them are looking at rentals,” he said.
Cyr says as boomers retire, their jobs are being filled by newcomers, which is also driving housing demand.
