Steinbach City Council · Jan 2022 – Sept 2026 · Election forum topic: Housing & Development
Housing and development: keeping up with growth
As Steinbach grows, how is council expanding affordable housing, keeping a healthy mix of single-family homes and apartments, and paying for the infrastructure that growth needs? Who ends up paying, and how do other councils compare?
Bottom line
- Steinbach is building more homes than ever, and most are now apartments. The city issued permits for a record 344 homes in 2024 and 365 in 2025, about three-quarters of them in multi-family buildings, up from about half in 2022.
- Affordability is still strained. In 2021, 21.7% of Steinbach households spent 30% or more of their income on shelter, the highest of the Manitoba cities compared. Rental vacancy fell to 0.4% in 2024.
- Council's affordable-housing role is mostly approving projects and passing on others' money. It routed a $1.34M provincial grant to The Bridge (24 units), endorsed other projects, and granted parking relief for seniors' and studio buildings. It has no incentive program of its own, no housing needs assessment, and no application to the federal Housing Accelerator Fund on record.
- Density is decided case by case. Most infill rezonings are approved, but proposals deep inside single-family blocks are often denied for “neighbourhood character”. The new zoning by-law doesn't allow 3–4 homes per lot as of right, as Brandon and Winnipeg now do.
- Who pays for growth: developers pay fees of $4,288 per house and $3,112 per apartment (2025), rising 5% a year. Council chose 5% over staff's recommended 7.5% to protect affordability (5–2 vote). The biggest growth cost, a $132.5M wastewater expansion, has no matching charge on new homes.
Part 1 · The council record
Affordable and supportive housing
“Like many communities, Steinbach is in short supply of affordable housing.”
Councillor Jac Siemens, moving a $1.34M provincial grant to Steinbach Community Outreach · Jul 5, 2022 · 0:07:20
“And this grant funding, of course, comes from the province. And then, you know, we reviewed the different applications from different groups to receive this funding, and Steinbach Community Outreach had the best proposal.”
Councillor Michael Zwaagstra · Jul 5, 2022 · 0:09:10
“hopefully this is the first of many projects that will happen in this vein.”
Councillor Michael Zwaagstra · Jul 5, 2022 · 0:09:32
“And it does not factor in that the lower someone's annual income is, the less likely they are to be able to afford a vehicle, let alone 1.5 vehicles.”
Councillor Susan Penner, supporting a parking variance for the same project · Mar 1, 2022 · 0:55:47
“one of the recommended changes as it pertains to land use includes adding policies on affordable housing. And this is something we want to be proactive about and has changed significantly since 5 years ago, given how much costs have rapidly been rising over the past few years.”
Councillor Susan Penner, on the Official Community Plan review · Dec 3, 2024 · 0:15:17
“This is something we do need. Senior housing is something that's really lacking in our community.”
Mayor Earl Funk, approving a 7-storey, 84-unit seniors building at 185 Friesen Ave · Jun 2, 2026 · 1:04:51
“Requiring what we do for, again, bigger units for this will likely make this unaffordable and defeat exactly what we're trying to accomplish.”
Councillor Susan Penner, on parking for 36 studio apartments · Nov 18, 2025 · 0:56:46
The Bridge opened in late 2023, with rents of $583–$801 including utilities. Since then council has endorsed The Bridge on Third (supportive housing) and approved seniors' buildings with long waitlists: Steinbach Housing about 200, Bridgepark Manor about 220. It has not put city money, land or fee waivers into affordable housing, and no further city affordable-housing grant followed the 2022 provincial one. Secondary suites are a sensitive point: when staff proposed enforcing suite safety standards in 2024, Councillor Siemens warned of “a loss of many low-end rental units” (Aug 20, 2024).
The mix of homes and apartments
“If we double our population, our population outwards, the city will fail. It's just that simple. We cannot double our population sprawling outwards. Having said that, there is also a lot of value of having young families in affordable single-family housing within accessibility to the downtown.”
Councillor Damian Penner · Mar 19, 2024 · 1:43:55
“But please don't fear multifamily. You can live harmoniously with multifamily and single-family dwellings. It does work.”
Mayor Earl Funk · Mar 19, 2024 · 1:49:17
“There seems to be this assumption that I understand the reasoning in terms of that, yes, density in general, in theory, is good. But so are single-family homes.”
Councillor Michael Zwaagstra · Mar 19, 2024 · 1:37:25
“Developers have told us time over time that to buy a To buy a home and rip it down and build another single-family home on these large lots is not feasible.”
Councillor Jac Siemens · Mar 19, 2024 · 1:33:24
“our vacancy rate is nil in Steinbach. You cannot find housing in Steinbach, and there's lots of multifamily being constructed currently. We need more.”
Councillor Jac Siemens · Apr 7, 2026 · 1:32:01
Residents at the same hearings spoke on both sides:
“In terms of affordable housing, I am a homeowner today because of this neighbourhood.”
E.D., resident objecting to a 32-unit building · Mar 19, 2024 · 1:14:19
“I believe this notion that this area is affordable, it's no longer affordable. … So renting is my only opportunity”
C.S., resident supporting it · Mar 19, 2024 · 1:16:43
“imagine for all of you, if I could get each one of your addresses, and use AI to put a 24, 12-plex, 20-plex, whatever, on your neighbor's property. It becomes personal.”
T.N., resident objecting to a 12-unit building · Sept 1, 2026 · 0:26:16
Infill rezonings in established neighbourhoods
Of 15 applications to allow apartments in established areas (2022–Sept 2026), 10 cleared their public hearing, 2 were denied and 3 were still pending. A third denial came in October 2026. Every greenfield subdivision rezoning adding higher-density housing was approved.
| Rezoning | Proposal | Outcome |
|---|---|---|
| 6 First St (2022–23) | 22–24 units, 3 storeys | Approved 5–2 (Siemens, J. Hiebert against) |
| 205 McKenzie (2022–24) | Fourplex across from the high school | Approved after a Municipal Board hearing; final vote 6–1 (Siemens against) |
| 360–368 Third St (2023) | Multi-family; 13+ objectors and a 40-name petition | Denied, unanimous |
| 600 Main St (2024) | Sixplex | Approved, unanimous |
| 268/274 Home St (2024–25) | 32 units, 3 storeys over parking; 43-name petition | Second reading 4–3; 4th-storey variance 3–2 |
| 79/85 First St (2025) | 17 units, no objectors | Approved, unanimous |
| 189 Hanover St (2025) | Sixplex; staff recommended approval | Denied, unanimous |
| 286 Henry St (2025) | 6 units | Approved, unanimous |
| 635/641 Main St (2025–26) | 36 studio units under 500 sq ft | Approved; parking variance 5–2 against staff advice |
| 492–506 McKenzie (2026) | 48 units; petition and 7 objectors | Approved, unanimous |
| 330 McKenzie (Oct 2026) | 20-unit townhouses | Denied, unanimous (SteinbachOnline) |
Paying for growth
“We have a developer pay policy, which means if there's going to be a new neighborhood, the developer pays, and it's a significant amount.”
Councillor Michael Zwaagstra · Sept 6, 2022 · 1:16:44
“The city, we don't benefit financially from having more development because when you have more development, there's more services we have to provide.”
Councillor Michael Zwaagstra · Sept 6, 2022 · 1:17:28
“if you're a citizen of Steinbach, you're either paying for it upfront on the development fees or you're going to be paying it through the mill rate.”
Councillor Damian Penner, arguing for staff's recommended 7.5% annual fee increase · Oct 17, 2023 · 0:15:09
“basically the opposition here is that we're making it too affordable to build homes and develop within Steinbach. And I prefer to err on the side of affordability.”
Councillor Michael Zwaagstra, on choosing 5% a year instead · Nov 7, 2023 · 0:11:54
“it's the entry-level housing that is going to have the biggest impact if we raise these development fees to the 7.5%.”
Mayor Earl Funk · Nov 7, 2023 · 0:13:29
“And so what this does tell us is that the old maxim that growth pays for itself is not true, because obviously if the city was not growing, we wouldn't be having to do a lot of these things.”
Councillor Michael Zwaagstra · Mar 4, 2025 · 0:32:46
“So we do not want to ever be in a situation where the city is not able to issue building permits.”
Councillor Michael Zwaagstra, applying for federal help with a $132.5M wastewater expansion · Apr 15, 2025 · 0:22:58
“as a matter of practice, sidewalks are generally not required by developers at time of development of subdivision, and that is a targeted and specific strategy of the city.”
Troy Warkentin, City Manager · Dec 16, 2025 · 0:15:16
By-law 2233 (2023) sets the fees through 2027, at $4,083 per single-family home in 2024 rising to $4,727 in 2027, and $3,112 per apartment unit in 2025. Water and sewer impact fees apply only to non-residential development (By-law 2233). The vote was 5–2, with Councillors Damian Penner and Jake Hiebert against because they wanted developers to pay more. Meanwhile the city has committed to its $65.4M share of a $132.5M wastewater project that growth makes necessary. No result of its federal funding application has been reported.
Their reasons for not doing more
1Some neighbourhoods aren't ready for density
“And so to turn this into a 6-plex, looking at the size of that lot, even though it would technically fit, it does not fit the overall character of the neighbourhood.”
Councillor Michael Zwaagstra, on denying a sixplex at 189 Hanover St · Mar 18, 2025 · 0:40:39
“But I think you're 10 years too early.”
Councillor Jac Siemens · Mar 18, 2025 · 0:36:37
“I just don't feel at this point I'm ready to go with that kind of development in this area.”
Mayor Earl Funk, voting against a fourplex on McKenzie Ave · Nov 1, 2022 · 1:26:41
Council decides each rezoning on its own, guided by an infill policy and the Official Community Plan's “transitional” area, but there is no map saying where apartments are expected. In October 2026 it unanimously denied 20 townhouses at 330 McKenzie, with the mayor saying “This is maybe not the time.” Five months earlier it had approved 48 units a few blocks away. Residents and builders can't predict outcomes, and each hearing becomes a neighbourhood fight.
2Higher fees would make housing less affordable
“But too big an increase would hurt growth rate.”
Councillor Jac Siemens · Nov 7, 2023 · 0:11:36
“The reality is even 7.5% wouldn't cover the cost of growth.”
Councillor Michael Zwaagstra · Oct 17, 2023 · 0:18:06
Both sides agreed that fees are passed on to buyers, and that keeping them low shifts costs to existing taxpayers through the mill rate. Niverville charges $10,100 per house, including $4,600 for its lagoon (Niverville). Morden shows the cost of running out of wastewater capacity: it stopped accepting new building-permit applications in 2023 (CBC).
3Affordable housing is for other governments to fund
“And that was a prime example of how something good can happen from government funding, where A need is identified, the government provides funds, the local government then decides which organization is best suited to deal with those, and we got the Bridge, which has been remarkably successful.”
Councillor Michael Zwaagstra · May 5, 2026 · 0:19:57
Provincial and federal money for affordable housing exists, but much of it now rewards cities that change their own rules. Brandon received $6.2M from the federal Housing Accelerator Fund in 2024 after committing to allow four homes per lot and adding financial incentives for affordable housing (CMHC). The RM of Ritchot, the RM of Lorne and St-Pierre-Jolys, all smaller than Steinbach, shared $4.05M from its small and rural stream. No Steinbach application appears in council records.
4Parking rules should hold
“There's nothing unusual about requiring 139 stalls. That is what our bylaw requires.”
Councillor Michael Zwaagstra, voting against 84 stalls for 84 seniors' suites · Jun 2, 2026 · 0:54:24
“I have not been convinced on the need to, to make an exception to our parking requirements.”
Councillor Michael Zwaagstra · Nov 18, 2025 · 0:49:17
Council has repeatedly granted parking relief anyway: 30 stalls instead of 40 at The Bridge, one stall per suite for seniors, and 45 instead of 59 for studios. The new zoning by-law still requires 1.5 stalls per apartment plus 10% for visitors. Brandon has cut its requirement to one per unit.
5Developers know the market best
“And developers generally know best where the needs are in terms of housing our community.”
Councillor Susan Penner · Dec 16, 2025 · 0:12:19
Part 2 · How Steinbach compares
Scorecard
How Steinbach's council compares with other Manitoba and Canadian councils on housing and growth.
Strong ahead of or matching good practice On par typical practice Partial started, with gaps Gap common elsewhere, not done here
| Measure | Steinbach | What others do | Rating |
|---|---|---|---|
| Getting homes built | Record 344 (2024) and 365 (2025) units; about 73% multi-family. | Growth towns everywhere are racing to add supply. | Strong |
| Zoning for gentle density | Attached secondary suites allowed; detached suites only in rural zones; no 3–4 homes per lot as of right; rezonings case by case. | Brandon allows 4 units on wider lots; Winnipeg allows 4 units citywide. | Partial |
| City incentives for affordable housing | None: no per-unit grants, fee waivers, tax rebates or city land. | Brandon's by-law 7379: $20,000 per unit for non-profits, development charges waived, 50% tax rebate for 20 years, land below market. | Gap |
| Federal housing programs | No Housing Accelerator Fund application on record. | Brandon $6.2M; Ritchot, Lorne and St-Pierre-Jolys $4.05M (small and rural stream); non-profits in Winkler and Selkirk got about $10.5M each from the Affordable Housing Fund. | Gap |
| Housing needs assessment | None found. | Required for many federal programs; standard practice for growing cities. | Gap |
| Who pays for growth | Developer fees indexed 5% a year (below staff's 7.5%); no residential water and sewer charge. | Niverville $10,100 per house including $4,600 for its lagoon; Brandon moving to full-cost rates. | Partial |
| Planning wastewater capacity ahead of growth | Applied in 2025 for help with a $132.5M expansion, years before capacity runs out. | Morden ran out and froze building permits. | On par |
| Parking for affordable and seniors' housing | Relief granted case by case through variances. | Brandon: one stall per apartment by default. | Partial |
Key findings
1Supply is up; affordability hasn't caught up
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| New homes (city permits) | 302 | 289 | 193 | ~120 | 344 | 365 |
| Average 2-bedroom rent (CMHC) | $852 | $877 | $942 | $968 | $1,025 | $991 |
| Rental vacancy (CMHC) | 1.8% | 2.3% | 2.2% | 2.7% | 0.4% | 1.9% |
Sources: 2024 permits, 2025 permits, CMHC rents, CMHC vacancy. Asking rents are higher: a typical listed 2-bedroom was $1,407 in July 2026 (Rentals.ca). A starter home costs “$300,000 and upwards,” a resident told council (Mar 18, 2025), and the average single-family sale was about $406,000 in early 2025.
2The rules haven't caught up with the votes
Council regularly approves apartments, height and reduced parking through one-off variances, yet the new zoning by-law (2026) keeps the old defaults. These are 1.5 stalls per unit, no 3–4 homes per lot, and detached suites only in rural areas. Writing the exceptions council already grants into the by-law, and mapping where apartments belong, would make outcomes predictable for neighbours and builders. It would also make Steinbach eligible for programs that reward those changes.
3Growth's biggest bill is wastewater
Development fees bring in roughly $1.25 million a year at 2025 volumes (estimate). The city's share of the wastewater expansion is $65.4 million, and a councillor said in May 2026 that the projected cost had “skyrocketed to over $200 million.” Fees will be reset when By-law 2233 expires in 2027. A study of what growth actually costs would let council decide how much new homes should pay and how much existing taxpayers should carry.
Peer councils on housing
| Municipality | Pop. (2021) | What council did | Result |
|---|---|---|---|
| Brandon, MB | 51,313 | Housing Accelerator Fund $6.2M; 4 units on wider lots; 1 stall per apartment; incentive by-law 7379 | Target 761 homes over 10 years |
| Winnipeg, MB | 749,607 | 4 units citywide; 4 storeys near frequent transit; Housing Accelerator Fund | 14,833 net new units, ahead of target |
| Niverville, MB | 5,947 | Per-unit fees set 3 years ahead: $10,100 per house incl. $4,600 for the lagoon | — |
| Morden, MB | 9,929 | Lagoon at capacity; no new building-permit applications since 2023 | Growth stalled |
| Ritchot, Lorne and St-Pierre-Jolys, MB | ~7,500 (Ritchot) | Joint Housing Accelerator Fund application (small and rural stream) | $4.05M; target 621 homes over 10 years |
| Airdrie, AB | 74,100 | Housing Accelerator Fund $24.8M; committed to 4 units as-of-right and more suites | Rezoning delayed |
| Red Deer, AB | 100,844 | Rejected 4 units as-of-right after public consultation | Gave up most of its federal funding |
| Steinbach, MB | 17,806 | Case-by-case rezonings; 5% fee increases; no incentives or federal housing application | Record supply, 73% multi-family |
What “doing all it can” would add
- Commission a housing needs assessment. It is the entry ticket for most federal and provincial housing money.
- Map where apartments are expected (the transitional area) with design standards for height, setbacks and parking, so hearings stop being case-by-case fights.
- Write the variances council already grants into the zoning by-law: lower parking for seniors', affordable and studio housing, and detached suites on urban lots.
- Consider 3–4 homes per lot on wider lots with a lane, as Brandon did, and apply for any future Housing Accelerator Fund round.
- Adopt an affordable-housing incentive by-law (fee offsets, small per-unit grants, tax rebates, city land) that stacks with Manitoba's forgivable loans of up to $70,000 per affordable unit.
- Rebuild development fees from a cost study when By-law 2233 expires in 2027, including a residential share of wastewater costs and different rates for infill and greenfield areas.
- Keep pushing for wastewater funding so Steinbach never has to stop issuing permits, as Morden did.
About this page
- Transcripts. Meeting quotes come from automatic transcripts of the official videos. The transcription often misspells the city's name; quotes show it correctly as Steinbach. Other words are left as transcribed. Each quote links to its moment in the video.
- Speakers. Every quote is from a speaker identified with high confidence. Council members and city staff are named; residents and representatives of community groups are identified by initials.
- Figures. Housing numbers are city building-permit counts, not completions; CMHC rents and vacancy cover purpose-built rentals of 3+ units only. The 2023 unit count comes from a council remark. Fee-revenue figures are estimates.
- Coverage. All 103 regular council meetings from January 2022 to September 15, 2026 were searched. A few by-law outcomes (6-storey rezoning By-law 2252; third reading of By-law 2241) fall in meetings outside that record.
Sources
Council meetings (official YouTube recordings): Mar 1, 2022 · Jul 5, 2022 · Sept 6, 2022 · Nov 1, 2022 · Oct 17, 2023 · Nov 7, 2023 · Mar 19, 2024 · Aug 20, 2024 · Dec 3, 2024 · Mar 4, 2025 · Mar 18, 2025 · Apr 15, 2025 · Nov 18, 2025 · Dec 16, 2025 · Apr 7, 2026 · May 5, 2026 · Jun 2, 2026 · Sept 1, 2026
- By-law 2233, development fees 2024–2027; Zoning By-law 2245
- SteinbachOnline: 2024 housing record; 2025 permits; 330 McKenzie denied; Third Street denied; The Bridge grant
- CMHC average rents; CMHC vacancy rates; CCPA Manitoba housing need data (2026)
- Manitoba Housing Starts Here; Housing Accelerator Fund recipients
- Peers: Brandon HAF; Brandon by-law 7379; Winnipeg; Niverville fees; Morden wastewater; Manitoba small/rural HAF; Edmonton zoning reform results