Norfolk rental vacancies virtually nonexistent

Luke Edwards

Grant Haven Media

If any would-be renters in Norfolk are struggling to find a place to live, they’re not alone.

The county’s housing needs study found a vacancy rate well below what experts would consider healthy. Consultant Erik Karvinen, from Watson and Associates, presented the study at the July 8 council-in-committee meeting. And while many of the overarching themes were familiar, county staff did say the study lays a foundation for future work to address housing issues in Norfolk.

Rising prices over the past five years for both house sales and rentals have put pressure on the market, Karvinen said. Home prices have gone from 36 per cent in that time, from $412,000 to $561,000. Rentals, likewise, have increased from $775 a month to $975 a month.

“Much of the appreciation in rental rates has been caused primarily by insufficient supply in rental housing. Vacancy rates in the county are currently about 0.2 per cent, which is very low,” he said, noting a healthy market would have a vacancy rate around three per cent.

The study found 1,605 households are in what’s classified as core housing need, and another 720 are in severe core housing need. These classifications take into account a home’s state of repair and capacity, as well as how much the residents’ income goes to pay for the home.

Karvinen said the core housing need number is actually good news, as it represents only six per cent of Norfolk’s households, lower than the provincial average of 12 per cent.

Still, like many other municipalities, Norfolk continues to struggle with housing affordability. Using a provincial formula, Karvinen said housing in Norfolk would have to meet the following numbers to be considered affordable.

For ownership, anything $348,500 or less is considered affordable. On the rental side, monthly rents of $677 for a bachelor unit, $1,155 for a one-bedroom, $1,037 for a two-bedroom, and $1,667 for a three-bedroom is considered affordable.

To meet the county’s needs over the next decade, the study found the county would need to see 2,930 new units built, of which 730 would have to fit the affordable definition.

“There’s clearly a need to expand housing options for a range of household income groups in Norfolk,” Karvinen said.

The study included several recommendations, including updating the official plan to incorporate the new affordable housing definitions and targets, developing monitoring tools to track housing development, considering various studies to specific demographics, looking at enhancing the community improvement plan program for housing, and considering changes to standards and policy to encourage more compact built form as well as additional residential units.

Norfolk was required to complete the study through the Canadian Community Building Fund agreement.