Several apartments in new constructions in Greater Moncton, New Brunswick are finding it increasingly difficult to find buyers. These are often the most expensive on the market.
If the vacancy rate for rental housing increased from 1.2% to 1.5% from October 2023 to the same period in 2024, according to the Canada mortgage and Housing Corporation, that for apartments priced at $1,500 and above averaged 2.8% last year.
To fill them, developers compete with strategies to attract tenants. Matthew McCaie, owner of Expert Mortgage Group and apartment building owner has his strategy.
“We give the first month free,” he said.
The 2025 figures of the Société canadienne d’hypothèques et de logement (CMHC) are not yet available, but the trend seems to continue this year, notes Thierry Comtois, vice-president of Quest Properties, a company that owns hundreds of apartments in the area.
“The market is moving toward a balance between supply and demand. But he is still far from having caught up,” he thinks.
A balance
New Brunswick Housing Market Experiencing a Slowdown
Table of Contents
The New Brunswick housing market,once a hotspot during the pandemic,is now showing signs of a slowdown,especially in the higher price ranges. While demand remains strong for more affordable housing, the luxury market is facing increased vacancy rates.
Factors Contributing to the Slowdown
According to Thierry Comtois,a real estate broker in Moncton,the slowdown is primarily due to an influx of new,high-end properties that aren’t being quickly occupied. He explains that there’s a natural limit to the demand from wealthier individuals, leading to increased vacancies in this segment of the market. “This is because the high-end market has received a lot of new units that are not necessarily occupied because there is a limit to the demand from wealthier people,” he believes.
Regional Differences in vacancy Rates
The situation varies substantially across the province. More affordable housing, especially in southeastern New Brunswick, maintains very low vacancy rates, fluctuating between 0% and 1%. This indicates continued strong demand for entry-level and mid-range properties.
Affordable Housing Vacancy Rates
Data from the SCHL (Société canadienne d’hypothèques et de logement) shows that the average vacancy rate for homes renting between $750 and $1,499 is just 0.6%.
market Outlook
Despite the overall slowdown, Thierry Comtois remains optimistic and continues to pursue his projects. This suggests a belief in the long-term potential of the New Brunswick real estate market, even amidst current challenges.
Key Takeaways
- The New Brunswick housing market is experiencing a slowdown, particularly in the high-end sector.
- Increased supply of luxury properties is outpacing demand.
- Affordable housing continues to see very low vacancy rates.
- The market outlook remains positive for some developers.
Publication Date: 2025/11/10 15:53:16