It's time for a bold New Brunswick housing strategy.
Don and I had an excellent conversation with Wade MacLauchlan yesterday. I particularly liked his thinking related to the housing crisis. I have had a number of folks contact me suggesting I should just shut up about the housing situation in the region. They tell me ‘the market’ will work itself out over time. The last thing we need is government sticking its nose in and messing everything up.
Look, I’m the biggest supporter of capitalism in New Brunswick. I’ve written odes to the wonders of the efficient allocation of capital and price signals and the profit motive. For the most part I welcome and even celebrate entrepreneurs who make surplus profits (beyond their cost of capital and the risk premium associated with their industry) arising from some innovation or product/service differentiation that meets customer demand. As long as they are not finding inappropriate ways to restrict competition, this is a good thing.
But when there is market failure or market turbulence in sectors where there is a vital public interest we may need government to come in representing the people. When there is a pandemic, to use a recent example.
There are great stories of government supporting housing development - again when there was some big turbulence. The ‘victory housing’ built to ensure there was housing for workers in factories supplying items for WW2. “Wartime Housing Limited” built 38,000 housing units - 400 in Pictou, NS alone.
I would like the community colleges in Atlantic Canada to significantly increase their international student enrolment in their more rural/small region campuses. This is an excellent way to bring immigrants to smaller areas. They study here. They can work while they study. They get to know the place while they study. It’s a perfect conduit for immigration.
But I am told time and time again we can’t put more students in these areas because we don’t have housing for them.
Then fix it. If the market won’t do it. The ‘public’ should step in.
If I’m right, we will need to double or even triple the number of dwelling being built in New Brunswick over the next 20 years - not in 20 years - starting now. We have a construction workforce that is aging out.
If this isn’t the time for a New Brunswick housing strategy - with all the elements - rural, student, immigrant, etc. - when will it be time?
I worry that we are using a faux love of capitalism/markets to justify government inaction. “Let the market do its thing” is a cop out for weak-kneed. I love capitalism and entrepreneurs but when we need government to act, I prefer ambition and boldness in the public sector.
Let’s build thousands of units that are good quality and affordable for newcomers and young families. We have excellent pre-fabricated housing manufacturers in our province and region. Let’s get them in the room.
Let’s ensure we have enough rental properties- urban and rural - to meet the demand of a growing population in the years ahead.