Fredericton is growing fast. With over 3,100 new residents in the past year alone and more than 3,800 new residential building permits issued over the last five years, it’s clear our city is experiencing rapid and significant growth. And at the heart of that growth? Housing. Is four-unit zoning the solution for Fredericton.
To help meet this need, the City of Fredericton is making a significant change to its zoning by-law: allowing up to four residential units on most fully serviced residential lots. While this change has sparked important community discussion, I believe it’s a step in the right direction—and one that opens doors, quite literally, for homeowners and renters alike.
Why Is This Change Happening?
Housing availability is a serious challenge in Fredericton. Despite record housing construction, our city-wide rental vacancy rate remains below 1%. The reality is simple: demand continues to outpace supply.
To access federal funding through the Government of Canada’s Housing Accelerator Fund, Fredericton committed to making zoning changes that would allow four units “as-of-right” on fully serviced residential properties. That means homeowners would have the ability to create up to four units on their lot without needing a rezoning application—provided certain criteria are met.
This isn’t just about funding. It’s about giving our city the flexibility to grow sustainably, affordably, and inclusively.
What Does This Mean for Homeowners?
If you’re a homeowner in Fredericton, this change could present new opportunities:
- ✅ Add a mortgage helper by converting part of your home or building a small backyard suite
- ✅ Accommodate multigenerational family in a separate but close space
- ✅ Age in place by converting unused space while earning rental income
- ✅ Support more affordable housing in your own community
There are several types of Secondary Dwelling Units (SDUs) that homeowners can consider, depending on the size and layout of their property:
- 🏠 Basement Apartment – A self-contained unit within the lower level of the home.
- 🧱 Accessory Apartment – A unit added to the side, rear, or interior of the existing home.
- 🛠️ Garage Loft Conversion – A new unit created above a detached garage.
- 🌳 Garden Suite – A small, detached structure in the backyard (sometimes called a backyard or coach house). You can read my blog on Garden Suites for more info.
- 🏡 Interior Suite – A unit integrated within the existing structure, offering a private entrance and living space.
It’s important to note that not every property will qualify. Minimum lot size, frontage, and some parking requirements still apply. Building permits are still required, and units must comply with fire, building, and plumbing codes.
Unlike other New Brunswick municipalities, Fredericton will not allow triplexes or fourplexes on suburban residential lots. New units must be part of the existing home, an addition, a backyard garden suite, or a garage apartment.
👉 Secondary units must be small (max 75m²) and meet specific criteria like sharing water and sewer lines with the main house.
👉 If more than one secondary unit is added, the property must be owner-occupied at the time the new units are created.
Addressing the Concerns
Understandably, change like this comes with questions. Some residents worry about overcrowding, traffic, or the impact on neighborhood character. These are valid concerns, and it’s important to clear up a few key points:
- ❌ Four units won’t be allowed on every property. Properties must meet zoning standards including lot size and frontage.
- ❌ This does not mean high-rise apartments in single-family neighborhoods. This is gentle density: think garage apartments, basement suites, or backyard units.
- ❌ Homes cannot be torn down to build 4 unit apartment buildings. A primary residence must be part of the plans, with up to 3 additional units.
- ✅ Building permits are still required, ensuring safety, quality, and community fit.
Cities across Canada and beyond have allowed small-scale multi-unit housing in established neighbourhoods for decades. In fact, some of the most desirable areas of cities like Toronto and Vancouver have had laneway homes and multiplexes for generations—and property values have remained strong.
A Note on the Owner-Occupancy Amendment
One amendment to the by-law requires that a homeowner must live on the property for at least one year before applying to add additional units beyond one. This was added in response to concerns about investor-driven development.
While the intention is understandable—protecting neighborhood stability and discouraging speculation—this particular restriction could significantly reduce the potential impact of the policy. It may deter small-scale builders and even some homeowners from participating.
It’s not clear what the most balanced approach would be, but I have a feeling that we may need to revisit this amendment in the future.
Disclaimer
The information in this post is accurate to the best of my knowledge at the time of writing. Zoning policies and by-law details can change, so I always recommend checking directly with the City of Fredericton for the most current and up-to-date information.
Looking Ahead
Allowing up to four units on residential lots won’t solve Fredericton’s housing challenges overnight, but it is a meaningful and necessary step. By enabling more diverse housing options in established neighborhoods, we can welcome new residents, help existing families adapt, and reduce the pressure that drives urban sprawl.
I’m encouraged to see our city taking bold, practical steps to plan for the future. And as a REALTOR®, I see not just policy—but possibility.
If you’re wondering how this might affect your property or your plans, I’m always happy to talk.
Tim Clancy, REALTOR®
Serving buyers and sellers within Fredericton city limits and beyond, with integrity and transparency
timclancy.ca
506-567-8541
**Giving back with every sale through **Keys 4 Kindness
