Expect 'change to our urban landscape,' P.E.I. minister says at housing announcement

P.E.I. Housing Minister Rob Lantz gave a bit of a preview of the province's coming housing policy, expected some time this summer, during a housing announcement in Charlottetown Wednesday.

"The province is in the process of developing a long-term housing strategy with focus on expanding each component of the housing continuum, from emergency shelters right to market housing," said Lantz.

"We also have to look at how we can create the environment for more housing in this province. Whether it's land-use planning, bylaws, rezoning, property-tax incentives or the permitting process, we need to make every effort to remove barriers for development.

"We need to make P.E.I. an attractive place to invest in housing."

Islanders should get used to higher-density projects that put housing units where people need them, close to businesses and schools, and a philosophy of "building up, not out," Lantz said.

The province intends to build 465 public housing units over the next five years, including those in the project at the heart of Wednesday's announcement.

The $30-million, 82-unit project will be built with $5 million in assistance from the city stream of Ottawa's Rapid Housing Initiative, with the rest coming from the provincial government. It will be owned and operated by the P.E.I. Housing Corporation.

The building will be at several addresses on Malpeque Road, around the site of the former Tourist Motel and Cabins. The P.E.I. Housing Corporation has purchased the 2.8-hectare site, and Lantz said this is the first phase of its development.

Federal Housing Minister Ahmed Hussen was also on hand for the announcement.

"The Rapid Housing Initiative is delivering deeply affordable, rapidly built housing units for the most vulnerable individuals, including right here in Charlottetown," said Hussen.

"These homes are not just roofs over people's heads. They are a symbol of our collective responsibility and collective duty to make sure that we are there for the most vulnerable members of our community."

Of the 82 units, 64 will be for seniors and 18 are aimed at women and children facing gender-based violence.

The first two phases of the Rapid Housing Initiative created 10,000 affordable housing units in Canada, Hussen said, and a third phase is expected to create at least 4,500.

'A stretch goal'

P.E.I.'s housing situation has been described as a crisis since 2019, and historic rates of population growth have been recognized as a central factor in the housing shortage.

Based on growth projections, the Department of Finance says the province needs to build more than 2,000 housing units a year just to keep up, without even starting to ease the existing shortage.

In the last five years, housing construction on the Island topped out at 1,484 units in 2020, according to figures from the Canada Mortgage and Housing Corporation. That had dropped to 1,266 by 2022.

It is this worsening situation that the new provincial housing policy is meant to address, but Lantz said it is not going to happen quickly.

He called adding 2,000 units "certainly a stretch goal this year… We have to continue to build the capacity to get to that point. That involves a lot of co-operation between all three levels of government here — and, particularly, private development plays a huge role in meeting these goals."

Meanwhile, the most recent statistics on building permits suggest P.E.I. housing construction will continue its reduced pace in 2023.

Statistics Canada reports building permits issued from January to May include 423 new housing units, a 29 per cent drop from the same period last year.

An uncertain economic outlook, including ever-rising interest rates, have made the home construction environment across the country more challenging, said Lantz.

The Bank of Canada raised its key interest rate again on Wednesday, to 5.0 per cent. That was the 10th rate hike by the central bank since March 2022.

'Building up, not out'

If the province is going to reach its housing goals, it will have to be about more than just getting bigger, said Lantz. It will require change.

"Our land is finite and we have to start building up, not out," he said.

"This will change our urban landscape, and some of our natural landscape possibly, but we can't keep doing things the way we have if we want to ensure that every Islander has a safe and secure roof over their head."

While the aim of the new housing policy will be to accommodate a population growing at historic rates, Lantz said as housing minister he is not directly involved in formulating the population strategy, which is also expected later this summer.

"[Population] Minister [Jenn] Redmond is responsible for the population strategy," said Lantz.

"I've had a small briefing on, generally, our population strategy here in the province, but no that's not a part of anything my department is involved with."

It is necessary to continue to grow the population to address labour shortages, he said.

'Good challenges'

Hussen said while population growth comes with difficulties, the federal government is standing ready to help.

"You're facing good challenges, the challenges that come with growth and economic development," said Hussen.

"That comes with some challenges such as a shortage of supply of affordable housing, a shortage of supply for purposely built rental units, housing for seniors, which is what we're announcing today, housing for women facing gender-based violence, which is what we are announcing today."

The tender will go out this summer.

A modular build can also come together faster and will put less stress on an already busy construction industry. The units — studios, one-bedrooms, and two-bedrooms — are expected to be ready for occupancy in November of 2024.