Local research reveals true scope of Cape Breton housing crisis
The housing crisis in parts of Cape Breton Regional Municipality (CBRM) is far more severe than federal statistics from Canada Mortgage and Housing Corporation (CMHC) have reported, according to a new study from Cape Breton University (CBU).
“It was quite shocking to see the extent of unaffordable housing, but these are stories that we hear all the time,” said Jan Hancock, political scientist at CBU and co-author of the study. “The CMHC is underreporting the affordability crisis in the CBRM.”
The study, conducted by Hancock and fellow political scientist Andrew Molloy, found that 30% of residents in Glace Bay and New Waterford are living in unaffordable housing, twice the 15% figure reported by CMHC for the broader CBRM.
Hancock attributed the discrepancy to CMHC's methodology, which he said fails to account for the realities of the local rental market. CMHC does not differentiate between renters and homeowners, nor does it capture data from the secondary rental market, individual units in private homes or commercial spaces, which dominate these communities.
“Interestingly enough in our survey, the most unaffordable housing was being paid by tenants in the secondary market and of course the CMHC doesn’t collect those statistics,” Hancock said.
More than half of renters surveyed are in the secondary housing market, and of those, 90% said their housing is unaffordable.
According to Hancock, CMHC’s reported average rental prices, between $850 and $1,000, are based on urban centers like Halifax and don’t reflect the reality in rural Nova Scotia.
“If you look on Kijiji today, you won’t find a one-bedroom apartment or two-bedroom apartment in New Waterford or Glace Bay available for $850,” he said. “It’s just impossible.”
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The study was conducted in partnership with the Town House Glace Bay Citizens Service League, a community organization serving vulnerable populations in Glace Bay and New Waterford.
Patti McDonald, executive director of community organization Town House Glace Bay Citizens Service League, said many clients are stuck in substandard housing they can’t afford to leave.
“If you own a home, your mortgage is probably lower than what people are paying for rent,” McDonald said. “The data is definitely backing up what we’re seeing and hearing.
According to a provincial study, the CBRM needs at least 1,000 new housing units by next year to meet demand. Planning director Tyson Simms recently told council that over 900 units will be started or completed by year-end.
Although some housing development is underway in Glace Bay, it has yet to improve access or affordability for low-income renters. However, McDonald noted that developers have begun to approach Town House to understand community needs, “a good sign,” she said.
“We are seeing the needle move a little bit, but nothing’s ever enough until folks are in the type of housing they need to be in,” McDonald added.
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