Saint Andrews puts its weight behind rental growth

With three projects already on the horizon, SaintAndrews could be headed for its biggest growth in rental units in a long time.

The southern New Brunswick town calls to mind beautiful heritage homes, charming streets, and a busy tourism season in the summer. In 2019, a market study found it also had a vacancy rate of 2.3 per cent, and things are still tight.

"What we don't have is a lot of diversified housing options, so we need to change the way in which people are looking to live," Mayor Brad Henderson said Wednesday.

Town council set aside $1.8 million in its 2022 budget for housing initiatives, both to increase the amount of rental spaces available and to improve affordable housing options.

Henderson said half of that will be raised through the sale of land, but the town is also willing to invest in infrastructure such as sewage and water systemsto help attract developers.

SaintAndrews approved two housing developments on Monday night and pledged more than $200,000 in financial assistance.

Van Horne Garden Homes is building 25 units in town, and another developer will build 10 units adjacent to Kingsbrae Gardens.

Henderson said the town will recover its investment for both projects within 3 years.

"We're investing short term for a very nice, long-term gain in addressing a community challenge," he said.

Those units will help improve availability, especially for markets such as downsizing seniors, but they won't necessarily be considered affordable.

Henderson said the town is focusing affordability on some land behind the New Brunswick Community College campus.

The town plans to approve the purchase price for the land, just over a hectare, by the end of this month. Then it will put out a call for proposals to developers for affordable housing units, and construction could start this fall or next spring.

"The two main factors that I'm concerned about are, what do you plan to charge and how many units can you put there?" Henderson said.

SaintAndrews hasn't had a budget for housing developments in the past, Henderson said. But he said there was no other option. He couldn't wait for the federal and provincial governments to provideaid.

The provincial government conducted a rental review in the spring of 2021. A number of recommendations came out of that review, including investing in a business plan for a provincial non-profit rural workforce housing development corporation.

That plan was scheduled to be completed last September. A spokespersonsaid the government is reviewing a draft of the plan, but no details were providedabout when it'll be released.

Henderson said the lack of housing options for workers has also led short-staffed shops and restaurants to only open five days a weekeven thoughthey have the demand,

"It doesn't just impact seniors looking to downsize in our community, it doesn't just impact young families or even young workers that are trying to get started, but it's actually the point now where it's impacting our economy," he said.

The snake biting its tail

Markus Ritter has been running the Europa Inn on King Street in SaintAndrews for the past 22 years.

A few years ago, he had 16 staff. Last year, he had five.

"If we have more and more businesses in town, and less and less options for people to stay, that causes a worker shortage," he said.

A seasonal business, Ritter will be opening up his hotel and restaurant again soon. He's aiming for the same number of employees as last year, more if he can find them.

SaintAndrew's low housing vacancy is a big concern as he goes into the hiring season, Ritter said, but it's not the only issue causing the staffing shortage.

He referenced staff being stressed by working during a pandemic, plus the Canadian emergency response benefit potentially keeping some people at home.

Ritter plans to be open just five days a week in the upcoming season instead of seven. That's not just because of hard-to-find staff he said he wants more time to himself but he said trying to operate seven days a week without enough staff is tough.

In talking to other businesses in town about the issue, Ritter said he suggested sharing staff, but he doesn't know if that'll go forward.

When it comes to the housing shortage, though, Ritter likened the situation to a snake biting its tail.

"You can't find a job without housing, you can't find housing without a job," he said.