The Housing Dilemma in Newfoundland and Labrador: A Call for Action from the CHBA
In Newfoundland and Labrador, the housing sector faces unprecedented challenges—rising costs, bureaucratic barriers, and labor shortages are all hindering the construction of new homes. These issues were brought to light during the annual Canadian Home Builders’ Association (CHBA) expo held in Mount Pearl. Alexis Foster, the executive officer of CHBA-NL, articulated a pressing need for change as the federal election approaches, emphasizing that only by addressing these barriers can they create more housing supply, thus impacting affordability for many residents.
The Current Housing Crisis
St. John’s is at the epicenter of a housing shortage that has reached alarming levels. The Canada Mortgage and Housing Corporation recently reported that the rental vacancy rate in St. John’s plummeted to just 1.5%. This scarcity has left many residents struggling to find affordable housing options, urging political candidates to propose solutions as they campaign for the upcoming federal election.
Foster expressed her hope that the political landscape will shift to facilitate easier home construction, stating, "By doing that we will create more housing supply which will impact housing affordability." Both the Liberal and Conservative parties have made promises to enhance home ownership—one suggesting a dedicated entity to oversee affordable housing construction, while the other promises financial incentives to municipalities that ramp up home building.
Political Promises and Industry Responses
Foster warmly received proposals from both parties aimed at cutting the Goods and Services Tax (GST) on new homes. "It’s so hard now to be able to qualify and afford a home. So, anything that helps eliminate those barriers to entry is phenomenal," she acknowledged. Her perspective aligns with the increasing urgency to reduce governmental constraints that impede development.
The CHBA-NL continues to combat the "Not in My Backyard" (NIMBY) mentality pervasive in many communities, aiming to educate constituents about how increasing housing supply benefits everyone. As Foster notes, building more homes can lead to enhanced accessibility for all residents.
Labor Shortages: A Critical Challenge
The labor market is another pressing area of concern. Exhibitors at the home show made it clear that many construction firms are actively seeking workers, revealing a stark shortage of skilled tradespeople in the province. Curtis Mercer, CEO of K&P Contracting, highlighted this issue, point out that it now takes significantly longer to build a typical home—up to nine or ten months for a 1,000-square-foot structure, compared to five months in the past.
Mercer is also keenly following the federal election, hoping for incentives that could help stimulate growth in the construction sector. "We need to find new ways to build more with the amount of people that we have in the trades," he asserted.
Economic Factors: Tariffs and Material Costs
The ongoing discussion about tariffs adds another layer of complexity to the housing industry’s current woes. Builders and clients alike are worried about potential spikes in material costs. Mercer expressed concern that the dynamics might mirror the challenges experienced during the COVID-19 pandemic, where sourcing materials became a significant hurdle.
Regional manager of TrueFoam Newfoundland, Paula Mills, echoed these concerns at the expo. The company, which specializes in energy-efficient insulation produced locally, is focusing on maintaining affordability for homes while keeping an eye on interprovincial trade dynamics. Mills remarked, "I’m hoping that Donald Trump comes to his senses," underscoring the cross-border tensions that can affect business operations.
Conclusion: A Call for Collective Action
The challenges Newfoundland and Labrador face in the housing market are multi-faceted and require collaboration among industry stakeholders, government bodies, and the community. With the federal election on the horizon, there’s hope that political candidates will recognize the urgency of these issues and take tangible steps to mitigate them.
As Foster and Mercer illustrate, the road to resolving the housing crisis requires a concerted effort aimed at improving labor availability, reducing bureaucratic obstacles, addressing economic factors like tariffs, and enhancing homebuilding incentives. The time for action is now, and only a unified approach will pave the way toward a more accessible and affordable housing landscape in Newfoundland and Labrador.
