Property Assessments in New Brunswick Skyrocket Amid Real Estate Boom

In a pattern of escalating numbers, residents across New Brunswick are witnessing substantial hikes in property assessments, marking the third consecutive year of such increases for some locales. The heart of this surge lies in Moncton, where properties on Lonsdale Drive have seen assessments leap by a staggering 90% since 2021. Similarly, a climb of 27.9% this year is evident in the homes tucked away on Pleasant Street in Sackville. Saint John’s lower west side neighborhoods are grappling with increases of 46% or more, with some even crossing the halfway mark to 100%.

Rising Assessments and Property Taxes

Service New Brunswick Minister, Mary Wilson, ascribes these leaps to a robust real estate market and a surge in new construction. These assessments form the backbone for property taxes. However, the eventual impact on tax bills will be softened by provincial rules that instate large assessment increases at a rate of 10% per year. In Saint John, a strategic 2.5% tax rate cut will result in most homeowners experiencing a maximum of 7.3% increase in property taxes for this year.

Disparity in Tax Measures

Mayor Donna Reardon has voiced her concerns over the rising gap between residential property tax hikes and the relatively stable assessments for business properties. This disparity underscores the need for a more equitable distribution of tax measures. Property owners are given a deadline until February 14 to raise objections to their assessments with Service New Brunswick.

Government Initiatives and Real Estate Forecast

In parallel to this, the N.B. government has earmarked $2.7 million to cover fees for five years. More than 1,000 housing units have sprung up in Riverview since 2017, with the city of Moncton poised to add roughly 1,000 new housing units per annum. The Canadian Real Estate Association has projected a rejuvenation of the housing market in 2024, with a forecasted 10% increase in residential properties sold countrywide and a 2% boost in the national average home price. Despite the promising forecast, first-time homebuyers might face hurdles in securing mortgages, especially in Ontario and B.C.