P.E.I. on pace to build more social housing than what’s promised in strategy

Prince Edward Island (P.E.I.) has launched a new housing strategy aiming to build 560 social housing units over the next five years as part of a broader goal to construct 10,000 new homes in the same period. Housing Minister Rob Lantz emphasized that these figures are not fixed targets and the province is committed to increasing both social and general housing stock.

The province’s social housing goal would raise its ratio to about 3.3% of total housing, still below the OECD average of 7%. To reach this average, P.E.I. would need over 3,000 new social units, according to Scotiabank economist Rebekah Young. She advocates for a significant increase in social housing, suggesting that 20% of new builds should be dedicated to this sector to address the broader Canadian housing crisis. P.E.I. recorded 1,139 housing starts in 2023 and had more than 250 social housing units under construction, indicating that the pace for meeting the new targets is promising. However, the challenge remains significant, especially given the province’s historically slow construction rates and recent variability in housing starts.

The strategy includes a $10 million pilot project supporting non-profit and co-operative housing groups and subsidies for renters, covering the gap between market rates and affordable levels. Critics argue that rent subsidies alone are insufficient to address the affordability crisis, which affects 30% of P.E.I. renters. Experts like Carolyn Whitzman suggest that more robust social housing programs are needed, beyond current subsidies and new construction, to effectively address long-term housing needs. The strategy reflects a commitment to addressing these issues but acknowledges the complexity and scale of the challenge ahead.

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