New Homes
New Homes
National survey sheds light on home ownership
In 2010, the federal government replaced the long-form census questionnaire with a voluntary household survey called the National Household Survey. It produced some interesting results that can give us some national direction on housing.
To no one's surprise, those in the 15-to-24 age group make up a very small percentage of household headship and home-ownership rates. These rates double and triple respectively for the 25-to-34 age group.
This should give some direction to those building and selling homes, selling furniture and appliances or doing renovations. This 10-year span of the population is making major purchasing decisions on a first-time basis and should be a primary marketing target. Although numbers jump again in the 35-to-44 age group, this is more of a natural progression than a major shift or pattern.
The changes are not nearly as dramatic for the 45-54, 55-64, 65-74 and 75+ age groups. Their numbers remain fairly consistent. Even the empty-nesters and down-sizers are still homeowners, just with different homes.
As we all know, baby-boomers were raised with the philosophy of owning your home as quickly as possible and eliminating their mortgages before the normal amortization period. In 1981, with interest rates in excess of 21 per cent, this way of thinking was understandable. But this sense of repayment urgency dissipated considerably when interest rates fell to single digits, and even more over the past few years with record-low rates.
Those of us who are still stuck in our baby-boomer mentality have a difficult time understanding this philosophy, but we must accept it as Gen X and Gen Y have a different mindset. And since only 0.31 per cent of all mortgages are in arrears by three or more months, maybe it's time to acknowledge that they know what they're doing when it comes to budgeting.
The National Household Survey identified one million housing units, or seven per cent of the total stock, that are in need of major repairs. Homes built before 1920 make up about 17 per cent of the stock, but those built in the 1946-1960 and 1971-1980 periods are the largest groups requiring major renovations.
Given these trends and numbers, it appears that both the new-home and renovation industries will be on solid ground for a number of years.
Mike Moore is president of the Manitoba Homebuilders' Association.
New Homes
Building-product market continues to grow
For the past seven years, Canada has been a net importer of bu 156 Lake Bend Road, Bridgwater Lakes ilding products and materials. Prior to that, a healthy U.S. market ensured a solid demand for our raw and manufactured materials — Canadian exports were a valuable resource south of the border and throughout the world.
However, when the housing crash took place, exports of Canadian building products fell by more than 40 per cent between 2007 and 2009. Although there has been a gradual increase of about two per cent per year, it’s not enough to get back to where we were. The Canadian housing market did not fall nearly as dramatically as the U.S. market and also rebounded considerably faster, so our demand for building products has grown accordingly. As recently as 2012, we spent twice as much on imports as we brought in from exports.
That trend slowed a bit last year, largely due to a slowdown in housing starts in some larger Canadian urban centres. However, things look brighter for the immediate future, and it’s not because of reduction, but rather growth.
American housing starts are projected to continue to climb in 2014, increasing demand for Canadian building products and boosting our export market. Recent trends indicate that wood, petrochemical and asphalt products are experiencing the largest growth. Exports of masonry, electrical and paint products are growing more modestly, but they are still increasing. These are offset in part by declines in steel, tools and machinery. In that the Canadian manufacturing sector is closely tied to the U.S. economy for exports, a recovery in their housing market is good news north of the border.
If there is one lesson to be learned from this, it’s that we must continue to diversify, both in terms of exports and imports. When the United States stopped buying, Canada stopped producing in some sectors and that hurt our economy.
Similarly, we were too heavily reliant upon our American neighbours for imports of building materials. When they stopped buying their own products, they stopped manufacturing, and we were forced to look elsewhere. Canada has gone from a 75-per-cent U.S. dependency for imported building products 15 years ago to less than 60 per cent today. China has been the largest beneficiary of this shift.
Canada must be mindful to ensure that we have a balanced or even positive import-export ratio with China and other countries to ensure the health of our producers.
Mike Moore is president of the Manitoba Homebuilders’ Association.
New Homes
Kitchen Bath & Renovation Show starts next weekend
It's January, and that means it's time for the annual Kitchen Bath and Renovation Show running from January 10th through the 12th at the RBC Convention Centre Winnipeg from Jan 1-12.
This show has always kicked off the new year for home renovations, and Manitobans lead the nation in that department. Manitoba is the only province where more money is spent on renovations than new -home construction on a consistent basis.
In that Winnipeg has the third oldest housing stock in all of Canada, home renovations are a very big part of our lifestyle. And nowhere else can you find this much product and expertise under one roof than at the Kitchen Bath and Renovation Show.
This event is unique in that it provides a free avenue for consumers to test the renovation market. The Ask A Renovator booth is staffed with professional Manitoba Home Builders' Association RenoMark renovators who are available to answer your questions about a job you may be planning or just dreaming about. They are there to provide free 15-minute consultations to help steer you in the right direction towards an enjoyable and exciting upgrade to your home.
All you have to do to book an appointment is to go online at www.kitchenandbathshow.com and submit your name and preferred time-slot. Then, just come to the show prior to your allocated time and you will be able to pick the brains of one of Manitoba's finest renovators. You can also just come to the booth at the show and someone will be glad to set up an appointment for you while you are there.
Whether the job is big or small, whether it's something you're committed to or just thinking about, and whether you're a do-it-yourselfer or looking for professional help, this is the perfect place. Start your renovation off on the right foot with professional advice.
The Kitchen Bath and Renovation Show opens at noon on Friday, Jan. 10 and continues until 5 p.m. pm on Sunday, Jan. 12. Tickets are available at the door for $12 plus Ticketmaster agency fee. The show is proudly presented by All Canadian Renovations and Penta Spray Foam Systems.
There is also a fabulous raffle opportunity at the show this year, featuring $10,000 of kitchen cabinetry from Springfield Woodworking. Proceeds go to Variety, the Children's Charity.
Don't miss your one-stop shopping experience at the Kitchen Bath and Renovation Show.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Homebuilders offer a house-load of thanks for 2013
As 2013 draws to a close and a new year begins, the Manitoba Home Builders Association wants to take this opportunity to recognize and thank those people who made this past year a success.
The residential construction industry is a huge part of Manitoba's economy. Its $3.4-billion impact accounts for more than 23,000 jobs and $1.2 billion in wages, as well as generating hundreds of millions of dollars in tax revenue.
Of course, initial kudos must go to the volunteers and staff who drive the MHBA. There are 10 standing committees of the Association with around 10 members each. That means about 100 people are giving their time and expertise to the MHBA each year, showing that numerous companies recognize the importance of being involved in their professional association. It doesn't work without this kind of commitment.
The MHBA presents both large and small events each year. The spring and fall Parade of Homes events are the largest and best-run in Canada. The Home Expressions Show in March and the Kitchen, Bath & Renovation Show in January are the largest events held at the Winnipeg Convention Centre. Tens of thousands of people participate in these four very public events.
At the other end of the spectrum, the MHBA hosts housing forums, educational seminars, awards evenings, dinner meetings, golf and curling outings and a variety of other activities that encourage interaction and professional development among members. The financial support from sponsorship keeps all of these activities at reasonable prices. A huge thank-you goes to all of the various sponsors, too many to list, but many of whom can be found on the MHBA website.
Legislation, policies, practices and procedures can be frustrating at the best of times. However, without full consultation, they can be almost impossible. Recognition and thanks must go to the open-door policies of Premier Greg Selinger and the many ministers and government staff whose portfolios have a tremendous impact on the residential construction industry. Similarly, across the floor, Brian Pallister and Jon Gerrard ensure that all sides are being heard.
Mayor Sam Katz, the city's Executive Policy Committee and council members, and everyone at Planning Property and Development work very hard under trying circumstances to keep Winnipeg vibrant and prosperous. The MHBA is the envy of other major, urban centre-based housing associations for the co-operative rather than confrontational approach taken by the City of Winnipeg.
Local media ask tough but fair questions and report things as they are. Fellow industry associations come together for common causes. And let's never forget those charitable organizations (especially Habitat and Variety) who are so close to our hearts and recognize the importance of housing.
Wishing everyone a most happy 2014.
Mike Moore is president of the Manitoba Home Builders' Association.