Federal funding supports zoning changes, affordable units, and modular developments
The town of Sussex has secured $3.2 million through the Canadian Mortgage and Housing Corporation’s (CMHC) Housing Accelerator Fund, aiming to meet increasing housing demand and support projected growth.
The initiative outlines a multi-pronged strategy to incentivize the development of at least 104 permitted housing units over the next three years and a total of 914 new homes within the decade.
"It’s going to be an incredible boon for Sussex," said Saint John-Rothesay MP Wayne Long. "It’s going to encourage density, it’s going to encourage them looking at different areas to develop housing, it’s going to help explore modular housing. It’s going to help encourage more developers to come to Sussex with aggressive ways to build housing."
Sussex CAO Scott Hatcher explained the town’s comprehensive six-part action plan. This includes preparing land for development, revising zoning bylaws to accommodate diverse housing, and establishing partnerships with the private sector.
Understanding Sussex’s housing market
Sussex commissioned a housing needs assessment with Dillon Consulting Limited, revealing a predominantly single-family home market with limited recent construction.
The analysis revealed that Sussex primarily offers single-family homes (58%) and apartments (21%), with only 7% of the housing stock built after 2011. While homeownership sits at 65%, a significant 35% of residents rent.
Read more: Rural PEI towns secure $1M funding for housing push
Sussex has experienced modest growth in recent years, including a recovery period following the 2016 closure of the Picadilly potash mine.
However, Hatcher noted a recent surge in private developer interest. Of 109 residential units built from 2017 to 2022, 38 were completed in 2022 alone. Two notable apartment complexes are in the final stages, adding 86 units near Main Street and Shoppers Drug Mart.
"It took a little bit of time to get the initial starts of the recovery," Hatcher told The Canadian Press. "But in the latter part of 2022 and 2023 ... you can clearly see that there are more private developers that have the confidence to invest in Sussex."
Need for proactive action
The town anticipates continued growth, potentially adding pressure to its housing market.
The Dillon housing needs assessment projects Sussex’s population could grow by an average of 1.5% to 2.5% annually. The medium projection would mean an increase from 6,051 residents in 2022 to 7,341 by 2036 and 8,520 by 2046, with a potential housing gap of hundreds of units.
The higher projection raises the possibility of even more significant population growth.
"Clearly, if you have that level of growth ... there has to be some assessment of infrastructure we provide," Hatcher said, noting the need to evaluate sewer, water, stormwater, road networks, and flood mitigation.
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