A new study from Online Mortgage Advisor shows that Monctonians are now using 11.3 per cent more of their wages to pay for rent, meaning the city has seen the sharpest decrease in rental affordability in Canada.
The study compared the average salary with the average price of a one-bedroom apartment between 2018 and 2022.
Jael Duarte of the NB Coalition for Tenant’s Rights said the tight rental market and lack of affordable options means tenants are often more fearful to complain about issues like mould or rodents in their apartments.
“This position of Moncton in the country just shows how having a rent cap in New Brunswick is important,” she said in an interview on Friday.
New Brunswick did have a temporary 3.8-per cent rent cap in 2022.
Housing minister Jill Green has gone on record saying another rent cap is not in the government’s strategy.
The study showed that in 2022, Moncton residents were spending 35.95 per cent of their income on rent.
Duarte said that when faced with rent increases from their landlords, many tenants chose to pay it for fear of not being able to find another unit.
Greater Moncton Chamber of Commerce CEO John Wishart said business owners in the city were facing greater salary expectations from employees as a result of the cost of living.
“I think business owners are trying to increase salaries as best they can but they’re facing things like inflation and interest rates and it’s not an easy overnight fix,” he said.
“A lot of immigrants are coming in with salary expectations and they have expectations that may not be in line with what the local market can provide.”
He said it’s made recruiting for open positions challenging, because the smaller talent pool means candidates are more likely to negotiate for a higher salary.
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