Housing boom seen in P.E.I.'s cities, but affordability remains a challenge

P.E.I.'s two largest cities have seen a major housing development the past 12 months, but affordability remains a key concern for officials in both municipalities.

Charlottetown Mayor Philip Brown told This is PEI podcast host Mitch Cormier that the city saw a staggering $250 million in new developments over the past year — a 63 per cent increase from the previous year.

This surge goes beyond single-family homes, Brown said.

"These are multi-unit, single-unit, institutional, commercial, right across the board," he said.

Summerside is also experiencing significant development. The city surpassed $100 million in building permit values for the second consecutive year in 2024.

Summerside Mayor Dan Kutcher credited this growth to the city's proactive housing initiatives and a community-wide effort to tackle the issue.

"There's a whole bunch of layers to this problem," Kutcher said. "And the first was there's just simply not enough housing units for people."

Both mayors stressed the importance of partnerships between different levels of government to keep the momentum going.

This is PEI19:39P.E.I. is getting a lot of new housing. Who will be able to afford it?

One way to take the pulse of housing in a community is to look at how many new units are under construction — also called housing starts. But when we look at that number, what are we not seeing? Mitch sits down with the mayors of Charlottetown and Summerside to talk about a record number of housing starts in 2024, and what else needs to be done. This is part one of a two-part series about housing on P.E.I.

Brown pointed to Charlottetown receiving $10.2-million funding from the federal Housing Accelerator Fund, which is helping finance new projects, including accessory dwelling units (ADUs) — small secondary apartments or garden suites.

"We're looking at providing funding for about 150 of those ADUs on existing properties within the City of Charlottetown, at $10,000 a piece," he said.

Brown also mentioned the $35-million, 147-unit affordable housing project in Winsloe on Malpeque Road, which was made possible with support from all three levels of government.

"When you get this assistance and collaboration from other levels of government and developers, that makes things happen," he said.

Summerside also secured $5.8 million through the Housing Accelerator Fund.

This came after the city council adopted a new official plan in October to allow for four-unit buildings across the city, a requirement of the federal funding. The fund requires changes to increase housing density across the country.

Kutcher said these changes are needed in Summerside.

"Those are to make sure that young people can stay here because they can afford a house here, they can start a household earlier, so the older adults and seniors have the appropriate types of housing that they need in their lives, so that our communities are more inclusive and people live closer together," he said.

Affordability still a major concern

While there are positive developments, both mayors acknowledged that affordability remains a major challenge.

Kutcher said he's heard from residents who are struggling with the growing gap between rising housing costs and wage increases, making it harder to find affordable places to live.

Brown echoed these concerns and said there's growing need for more non-market housing and increased investment in social and subsidized housing.

"Government has a social responsibility for good governance, and part of good governance is to provide housing for those that can't afford it," the Charlottetown mayor said.

There are incentives in P.E.I.'s capital city such as property tax breaks for new affordable housing units that meet the city's strategic housing needs, Brown said. The city is also looking at the use of its land bank to partner with government and community partners to create more social housing.

"We have land that we can provide to other levels of government, to NGOs, like the Kings Square Affordable Housing Corporation, or some other NGO that's out there that's all about providing housing for our marginalized population. That's where we can work together."

Summerside is also working to create more attainable housing options, Kutcher said.

This has involved strategic infrastructure investments, like roads, bike lanes and water and sewer systems to enable further housing development and increase housing supply. The city has also changed land use rules to allow more "missing middle" housing, such as duplexes on single lots, which are more cost-effective.

"It's going to take time to get supply. It's going to take time for government to get back into having the appropriate public housing, but there has to be housing there to make it public," Kutcher said.

Government has a social responsibility for good governance, and part of good governance is to provide housing for those that can't afford it- Philip Brown

He also pointed to the new 24-unit affordable housing building in Summerside with a focus on supporting women and children at risk of homelessness.

The $5-million project was funded through the federal Rapid Housing Initiative, with the city providing the land. The project also received a $2 million, 20-year forgivable loan and a $75,000 annual operating grant for 20 years from the province.

"That's variety of different levels of government, local partners, people picking up and doing things. And we need more of that," Kutcher said.