Where Is the Cheapest Place to Live in Atlantic Canada?

Is Atlantic Canada the most affordable place in the country? The eastern seaboard has witnessed an exceptional amount of newcomers over the last few years, though the trend has slowed in recent months. One of the reasons for this is the incredible opportunity to purchase a home that suits the typical family’s budget. But while prices are climbing throughout the region, many households are wondering where exactly is the cheapest place to live in Atlantic Canada. We combed through the data and found the province and its local markets.

Where Is the Cheapest Place to Live in Atlantic Canada?

Enter: New Brunswick.

Over the last few years, the Atlantic Canada real estate market has been booming. Many families, whether in Toronto or Vancouver, are migrating to different parts of the country. One of these places is Canada’s east coast – and for good reason.

While Halifax has been on the grow over the last several years, resulting in rocketing home prices, households are exploring other options in one of the most beautiful regions of the country. New Brunswick has been one of them and has jockeyed with Saskatchewan for the top title of Canada’s most affordable housing market.

Don’t believe it? According to the New Brunswick Real Estate Board (NBREB), the Home Price Index (HPI) was $308,100 in June, up more than eight per cent compared to June 2023. The benchmark price for single-family homes was roughly the same, while the townhome benchmark price was $299,000. Are you interested in condo living? The benchmark apartment price was $289,300.

Local real estate markets in New Brunswick are also quite impressive:

• Fredericton: $334,512
• Greater Moncton: $377,693
• Northern and Valley Region: $216,874
• Saint John: $332,373

Looking ahead, conditions could be mixed amid tightness and a slowdown in inter-provincial migration, says Rishi Sondhi, an economist at TD Bank.

“Relatively tight supply/demand balances should keep prices on the rise in Quebec and the Atlantic, although notable affordability deteriorations will prevent even stronger gains,” the bank economist said in a recent research note. “Interprovincial migration has also begun to slow in the Atlantic, weighing on what is likely a key source of ownership demand in the region.”

Whether prices will stagnate or decline heading into 2025 remains to be seen.

For now, the strength in the Atlantic Canada housing market, like New Brunswick, is its affordability, according to Robert Kavcic, senior economist at BMO.

“In most cases, this is a reflection of where Canadians can find affordability and, as a result, where they are moving,” said Kavcic.

The latest local real estate association data came after a recent report by Moneysense.ca and Zoocasa, which identified Moncton, New Brunswick, as the top municipality in which to purchase real estate.

This is unsurprising, notes Moncton Mayor Dawn Arnold, who told CTV News this past spring that the city’s lifestyle and residents are the primary selling points.

“We have kind, compassionate, collaborative people that want to work together that are engaged. They want to be a part of it all. There’s a real feeling of positive energy in our community right now,” said Arnold. “There’s really amazing people in our community.”

Housing Supply in New Brunswick

New Brunswick officials confirmed in May that the province fell short of its target of new housing starts in 2023. It also fell behind its regional counterparts that enjoyed an acceleration in housing construction in the first three months of 2024.

Nova Scotia and Prince Edward Island slashed sales taxes on new apartment builds and witnessed tremendous growth. However, New Brunswick Finance Minister Ernie Steeves confirmed that the province is not interested in going down that route.

Additionally, in an email to CBC News, officials are concerned that tenants might not benefit.

“Following some analysis by government, it still isn’t clear that rebating the provincial portion of the HST for real estate developers of purpose-built rental properties would result in benefits to tenants — such as lower, more affordable rents,” wrote Mir Hyder, a spokesperson for the Department of Finance.

Kelvin Ndoro, a housing analyst with the Canada Mortgage and Housing Corporation (CMHC), told the news outlet that eradicating the sales tax has supported initiatives to build housing more quickly.

“The general view from the developing community is the HST rebates are expediting ongoing projects,” said Ndoro.

Ottawa has also embraced this plan. In September 2023, Prime Minister Justin Trudeau announced that the federal government would stop applying a five per cent GST on the construction of new rental buildings.

“We are going to be removing the federal GST for the construction of new apartment buildings, and I’m encouraging all provinces to do the same,” said Trudeau on Sept. 14.

Property developers could end up paying tens of millions of dollars in sales taxes once the build is finished.

Despite a slow start to 2024, new housing construction activity has improved. CMHC data show that housing starts have risen 54 per cent in the first six months of 2024 compared to the same time a year ago, totaling 1,963 units.