Every day, I receive selected articles from across the country about issues that affect the residential construction industry. These can involve a multitude of topics ranging from government legislation to research studies to local issues. This past week, I noticed a few issues or trends occurring around the country that just might come into play here over time.
The University of Waterloo recently hosted a forum where a panel of experts raised a number of housing concerns. It seems as though they are facing a vicious circle of similar issues. Millennials tend to be the most interested in living in the heart of the city, close to public transit. However, in larger cities such as Toronto, downtown real estate is frequently the most expensive. Young families don't want to raise their children in small downtown condos but also don't want to commute daily for over an hour each way in order to own a single-family home. However, they can't build just outside existing municipal borders closer to their desired work location because of Ontario land use and intensification policy regarding the greenbelt area.
An interesting sidelight to the transportation issue, recently a 42-storey tower in Toronto became the first such building in Canada to be built without a parking garage.
Other communities have responded to the need for more affordable housing in innovative ways. Vancouver waives development fees and charges on affordable housing projects. Austin, Tex., encourages more affordable housing on foreclosed properties. In Saskatoon, one builder is pursuing garage and garden suites as an infill project for back-lane neighbourhoods, primarily in the older core area of the city.
In Edmonton, they are making concerted efforts to densify older neighbourhoods. This may take the form of subdividing larger lots into two smaller lots or building multi-family residences on sites where single-family detached once existed.
British Columbia, Alberta and Ontario have all supported six-storey, wood frame, multi-family units in an effort to create safe, more affordable mid-rise housing. Saskatchewan is currently considering this option.
Due to the sudden and significant drop in oil prices, concern has been raised about home sales, production and prices. Jobs may also be at risk. Look for a possible return of some of the skilled labour and youth that left Manitoba recently to return home to live.
Mike Moore is president of the Manitoba Homebuilders' Association.
