Tag Archives: BILD (Building Industry and Land Development Association)

BILD introduces new education programs for RenoMark members

BILD introduces new education programs for RenoMark members

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BILD introduces new education programs for RenoMark members

When the Building Industry and Land Development Association (BILD) established RenoMark in 2001 its purpose was to identify professional contractors who agreed to abide by a renovation-specific Code of Conduct. We want to differentiate your expectations of RenoMark by introducing a mandatory Professional Renovator Education Program (PREP) for all member renovators. We’re looking to renovate your expectations one course at a time.

Much has changed in the renovation industry since 2001. We have seen updates to building codes, advances in building science and construction materials, new design trends, and with the advent of the Internet, customers that are engaged and more informed.

With all these changes RenoMark renovators need to adapt and continue to keep learning. Our members must keep up to date of changing practices and stay educated if they want to remain relevant. That’s why continuing education and lifelong learning is important for everyone in the industry, and it should be important to you as a consumer when choosing a renovator.

In 2020, RenoMark renovators participated in eight PREP education courses. They started with a refresher course on the RenoMark Code of Conduct and other courses included Customer Service, Dispute Resolution, Finance, Documentation, Insurance, Risk and Contracts.

The Code of Conduct course is the pillar of the program and is written with the consumer in mind. All RenoMark renovators must provide their clients with a written contract, offer a minimum one-year warranty, carry $2 million in liability insurance, possess all licences and permits, return client phone calls with two business days and have workplace liability insurance (WSIB).

How does renovator continuing education affect you as a consumer? For starters, the contracts course places an emphasis on providing a written contract for every job. The importance of getting such a document from your renovator cannot be overstated. A contract protects you by setting out clearly what you are getting, when you’re getting it and how much you will pay for it. The customer service module lets contractors see the renovation from the consumer’s point of view. The consumer wants a quality renovation that is on time and on budget, with minimal corrections and minimal call-backs. Consumers want protection and peace of mind by ensuring that their renovator has all the necessary permits, licences and insurance.

The remainder of the courses review new financial software, update them on environmental risks and give them a refresher on how to deal with consumers in a professional manner.

If you’re interested in finding out more about RenoMark, please visit us at renomark.ca or email us at renomark@bildgta.ca.

David Wilkes is President and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA.

For the latest industry news and new home data, follow BILD on Twitter, Facebook, BILD’s official blog.


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Delayed construction projects in the GTA will hurt government revenues

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Delayed construction projects in the GTA will hurt government revenues

The residential construction industry was granted essential workplace status under Ontario’s emergency orders during the COVID-19 pandemic. The industry was able to finish homes that were near completion and work on important infrastructure projects such as hospitals. Nevertheless, overall development and building projects across the GTA were delayed. This will have farreaching impacts on housing supply in an already tight market, as well as negative financial impacts on government coffers.

You may be thinking: If the industry was permitted to work, why are there delays? The response is a little complicated. Some municipalities had to adjust to working remotely, which slowed or stopped processing of planning and building applications that stalled developments and construction projects. Worksites had to adjust to COVID-19 protocols as social distancing rules negatively impacted productivity.

To get a better understanding of how the pandemic affected the building industry, BILD surveyed is members to understand how they were impacted. The survey found that there were 498 active projects in the GTA, representing 156,000 units at various stages of the development process. In Toronto alone, 276 projects were affected. The survey found that 65 per cent of active pre-construction projects reported delays of three to six months, and 32 per cent were greater than six months. Eighty-three per cent of not yet above grade projects reported delays of three to six months, and 11 per cent are greater than six months. Eighty-five per cent of projects under construction permitted for above grade reported a delay of three to six months, and five per cent are greater than six months.

The Altus Group examined this survey data and concluded that these delays will result in the loss of about 9,000 housing starts over the course of the next 18 months. This will delay occupancy of more than 8,000 units by the end of 2021, potentially exacerbating an already existing shortage of housing in the city of Toronto, reduce construction activity and see the loss of 10,000 jobs per year.

Federal, provincial and municipal government revenues will be detrimentally impacted by the loss of housing starts throughout 2020 and 2021. Lost revenues include $340 million in lost development charges, $13.5 million in lost education development charges (TCDSB), $26 million in property taxes, $364 million in HST, $53.8 million in provincial land transfer tax and $52.5 million in lost municipal land transfer tax.

Now more than ever, all levels of government must work together to make sure that proper measures are in place to remove barriers that will unlock consumer and industry construction investments to help kick-start the economy.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD). bild.ca

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New home sales

GTA new home market quiet in May

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GTA new home market quiet in May

The GTA new home market saw another slow month in May, thanks largely to the impact of the pandemic, according to the Building Industry and Land Development Association (BILD).

New home sales

With 866 new homes sold, it was the lowest May for total new home sales since Altus Group, BILD’s official source for new home market intelligence, began tracking in 2000. May’s total new home sales were down 81 per cent from May 2019, and 76 per cent below the 10-year average.

Single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 438 new home sales, down 55 per cent from last May and 68 per cent below the 10-year average. Sales of new condominium units, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, at 428 units sold, were down 88 per cent from May 2019 and 80 per cent below the 10-year average.

“The fact that we have not seen much new supply brought to market in the last few months is not surprising, but it is concerning, given our region’s ongoing housing shortage,” says David Wilkes, BILD president and CEO. “An economic impact report we released with Altus (recently) shows that construction delays due to the pandemic won’t just affect housing supply but will also have fiscal implications, including a loss or delay of some $850 million in government revenues. All levels of government must work together to remove barriers to the renewal of construction activity that will help kick-start our economy.”

“Two months into the COVID-19 crisis, we are continuing to see the impact on available new home inventory numbers, with the number of new units brought to market in April and May reaching unprecedented low levels,” adds Matthew Boukall, Altus Group’s vice-president, Data Solutions. “Looking back at the market activity following the SARS outbreak in 2003, the industry will likely experience more months of disruptions to available inventory and sales.”

The benchmark price for new condo apartments in May was $985,436, up 26.4 per cent over the last 12 months; the benchmark price for new single-family homes was $1.1 million, which was even over the last 12 months.


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BILD construction survey

Survey shows almost 500 projects delayed due to COVID-19

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Survey shows almost 500 projects delayed due to COVID-19

A majority of residential construction projects in the GTA have been delayed due the COVID-19 Pandemic, according to a survey from The Building Industry and Land Development Association (BILD).

BILD construction survey

The survey covered 498 active projects (276 in Toronto) representing 156,000 units at various stages of construction. These interruptions will have far reaching impacts on housing supply in an already tight market and will have negative financial impacts on government coffers.

The residential construction industry was granted essential workplace status under Ontario’s emergency orders during the COVID-19 pandemic. However, the industry was only able to complete homes that were near completion. Nevertheless, overall development and building projects across the region were delayed.

Slowed processing

“One might ask, if the building industry was granted essential workplace status, why are there new housing slowdowns,” says BILD President and CEO Dave Wilkes. “The response is a bit complicated. Disruptions to the supply chain negatively impacted the ability of the industry to secure vital building materials. Worksites had to appropriately adjust to COVID-19 protocols, as social distancing rules negatively impacted productivity and some municipalities had to adjust to working remotely. This slowed processing of planning and building applications and stalled developments and construction projects.”

The survey found that 65 per cent of projects in Toronto reported interruptions of three to six months, and 32 per cent were greater than six months. Eighty-three per cent of not yet above grade projects reported delays of three to six months, and 11 per cent are greater than six months. Eighty-five per cent of projects under construction permitted for above grade reported a delay of three to six months, and five per cent are greater than six months.

Significant losses

Altus Group estimates that these holdups will result in the loss of about 9,000 housing starts over the course of the next 18 months. This will set back occupancy of more than 8,000 units by the end of 2021, potentially exacerbating an already existing shortage of housing in Toronto, reduce construction activity and see the loss of 10,000 jobs per year.

“Now more than ever, all levels of government must work together to make sure that proper measures are in place to remove barriers that will unlock consumer and industry construction investments to help kick-start the economy,” adds Wilkes.


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Construction industry to lead post-COVID-19 economic recovery

Construction industry to lead post-COVID-19 economic recovery

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Construction industry to lead post-COVID-19 economic recovery

The new home construction industry is well-positioned to play a significant role in the post-COVID-19 recovery in the GTA, Ontario and Canada, according to the Building Industry and Land Development Association (BILD).

“Working with our colleagues at the Ontario and Canadian Home Builders’ Associations, we have put together a roadmap for simple changes that will have a great impact to the economy,” says David Wilkes, president and CEO of BILD.

The CHBA, OHBA and BILD submitted a 20-point plan to the Ontario Jobs and Recovery Committee to help kick-start the Canadian economy post pandemic.

COVID-19 has had a devastating impact on Canada, Ontario, and the GTA, the groups say. Millions of people lost their jobs and the economy has all but ground to a halt. As governments at all levels start to look at recovery, they will need to focus on the GTA, as the region is the engine of Canada’s economy, accounting for 20 per cent of Canada’s and 50 per cent of Ontario’s GDP.

The residential and commercial building and development industry, and the professional renovations industry, are major contributors to economic activity in the region. Collectively, they employ more than 360,000 people in the GTA, paying $22 billion in wages and generating $42 billion in investment value annually.

Unlock investments

“With all levels of government facing financial challenges and funding requests, we are providing ideas that will unlock consumer and industry construction investments that will kick-start the economy,” says Joe Vaccaro, CEO of the OHBA.

Proposed measures include transferring mortgage tenancy to the date of occupancy for new condominiums, eliminating security deposits for Ontario Land Transfer Tax on affiliated transfers and freezing municipal increases to Property Tax Reassessment and development charges.

Another proposed recommendation is to free up monies that would otherwise be stuck in such things as municipal agreements (refundable deposits paid by developers) and replace them with surety bonds, freeing up billions in potential investments that otherwise would have been parked.

Stimulate growth

“To help stimulate economic growth and keep Canadians properly housed, we will need to foster housing supply while also ensuring demand-side measures are adjusted to reflect the times,” says Kevin Lee, CEO, CHBA. “Accordingly, we recommend 30-year amortizations for insured mortgages, and adjusting the mortgage stress test for both insured and uninsured mortgages. Removing the GST on new homes purchased for 2020 and 2021 would also be a timely catalyst for new home construction.”

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Municipalities and building industry working together now to ensure housing essential after COVID-19

 

 

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Municipalities and building industry working together now to ensure housing essential after COVID-19

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Municipalities and building industry working together now to ensure housing essential after COVID-19

In response to the outbreak of COVID-19, the government of Ontario had earlier decided to include construction sites as essential workplaces, permitting our industry to continue working on homes that were close to completion, while practicing social distancing. And on May 19, all construction was allowed to resume.

The earlier reduction of construction activity, particularly where it is seasonally dependant, could negatively impact housing supply in an already tight market. All municipal governments must continue to put the proper processes in place now, so that the industry can hit the ground running to meet the region’s pressing housing needs when things return to “normal.”

BILD is working closely with GTA municipal governments throughout the COVID-19 pandemic. Industry representatives are engaged in regular calls with GTA city officials, and we have seen success in unlocking doors that were initially closed to the industry. This is imperative progress towards ensuring that we can meet the demand of new homes once normalcy returns.

Many, but not all GTA municipalities, have adopted exceptional best practices, or have enhanced existing ones, and have created new protocols to allow for online building permit application submissions, virtual inspections and construction permit issuance. Some municipalities have facilitated vital communication between the public, the industry and city committees and councils to promote important stakeholder consultations. It’s not business as usual, but this type of virtual public and industry consultation has allowed the approval process to continue keep the industry moving.

Most municipalities had the technical capacity prior to COVID-19 and have been in a position to easily enhance these capabilities to best adapt to changing priorities. For example, city council meetings are live-streamed on city websites or available on YouTube, keeping the public and industry engaged. Residents and industry groups have been encouraged to email submissions and make deputations at virtual town halls. Larger delegations have participated via telephone or by virtual conferencing.

Zoom meetings have moved out of the boardroom and onto construction sites, as homebuilders are working with municipalities to schedule remote video inspections to ensure that newhome buyers can take possession of their homes as soon as possible while protecting workers and the public. It is this type of resourcefulness that will allow the building industry and the economy to bounce back more quickly.

Unfortunately, this type of proactive engagement is not universal to all municipalities, and housing supply and affordability will suffer in some of the GTA’s cities as a result.

The innovative measures taken by some municipal governments to continue with construction has been encouraging and we applaud and appreciate their efforts. However, as we get closer to opening the economy there are processes that can be put into place now. All municipal governments must provide a form of an online permit portal, continue with the approval processes as requests come in and continue with inspections so that the building industry can continue to make significant contributions to building communities and help rebuilding the economy.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD). bildgta.ca

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GTA new home market understandably slow in April

GTA new home market understandably slow in April

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GTA new home market understandably slow in April

The GTA new home market saw record low new home sales numbers in April, according to the Building Industry and Land Development Association (BILD).

It was the lowest April for total new home sales, as well as single-family and condominium unit sales, since Altus Group, BILD’s official source for new home market intelligence, started tracking in 2000.

“As we expected, the April new home sales numbers reflect the impact of the COVID-19 pandemic on the GTA economy,” says David Wilkes, BILD president and CEO. “The good news is, the residential and commercial building and development industry, along with the professional renovations industry, is positioned to play a significant role in the recovery of our region and Ontario. In the coming weeks, we’ll be putting forward recommendations for all three levels of government that can accelerate the healing of our economy.”

A total of 771 new homes was sold in April, down 80 per cent from April 2019 and 78 per cent below the 10-year average. Single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 301 new home sales, down 62 per cent from last April and 79 per cent below the 10-year average.

Sales of new condominium suites, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, at 470 units sold, were down 85 per cent from April 2019 and 78 per cent below the 10-year average.

“The plunge in new home sales in April came as both builders and potential buyers stepped back from the heated activity of the first quarter, adjusting to the new reality ushered in by COVID-19,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “Most planned new project launches were put on hold, sales programs for existing projects moved to virtual or by-appointment-only models, and short-term homebuying plans were disrupted by employment uncertainty, as well as the challenges of stay-at-home routines.”

Benchmark prices for both new condominium apartments and new single-family homes increased slightly in April, compared to the previous month. The benchmark price for new condo units was $984,369, up 29.8 per cent over the last 12 months. The benchmark price for new single-family homes was $1.11 million, down 0.2 per cent over the last 12 months.


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BILD report April 20 issue

New-home building and renovation industry acts to protect workers, customers

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New-home building and renovation industry acts to protect workers, customers

In times like these, people’s health and well-being are of the utmost importance. This extends to workers in Ontario’s new-home building and renovation industry and to our industry’s customers. For many residents of the GTA, this is a period of heightened anxiety and concern, so I want to take the opportunity to let readers know how our industry is striving to be part of the solution.

BILD report April 20 issue

I have been in regular contact with our members to understand what actions they are taking and to co-ordinate responses with provincial and municipal authorities. Without fail, BILD members are taking action to help meet community needs and respond to the health crisis, guided by the best information available, that is, information from the public health authorities in the municipali- ties and regions where they operate.

Individual company actions may vary based on their own unique situations. Companies are enabling work where possible. Many are opening sales centres by appointment only, or closing them entirely for now. They are taking steps to ensure increased hygiene, sanitation and cleaning for locations that remain operational.

Working diligently

We all know that the current situation is not normal and that as we all work to address and overcome this global pandemic, there will be impacts. Global supply chains, movement of goods and productivity are all affected. Our industry is working diligently to ensure that we continue to fulfil our responsibilities to our customers. We also recognize that eventually the effects of the current situation will extend to the delivery of new homes and completion of renovations, as well as any warranty work that might be required under builder warranties and Ontario’s New Home Warranties program.

In this regard, Tarion, Ontario’s body for consumer protection and administration of the Ontario New Home Warranties Plan Act and regulations, has recently issued an advisory for home builders and new-home buyers on what to expect during the COVID-19 situation. This material can be accessed at tarion.com. It provides solid guidance, but should not replace direct dialogue with your builder.

The GTA’s new-home building industry, professional renovators and land developers are doing their best to continue to meet the housing needs of residents, while at the same time doing their part to reduce the spread of COVID-19. At times like these, we must all pull together by working collaboratively and taking care of each other. That is our industry’s commitment to our colleagues, our customers and each other.

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Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD).

bild.ca

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BILD February new home stats

GTA new home sales strong in February

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GTA new home sales strong in February

In what might be the last surge for a while, GTA new home sales were exceptionally strong in February, according to the Building Industry and Land Development Association (BILD).

BILD February new home stats

There were 4,665 total new home sales in February 2020, which was up 211 per cent from February 2019 and 57 per cent above the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. It was the highest number of new homes sold in February since 2002 and the third highest in the past 40 years.

Single-family surge

It was also the strongest February since 2004 for sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses). With 2,247 new single-family homes sold, sales were up 228 per cent from last February and 44 per cent above the 10-year average.

Sales of new condominium apartments, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, at 2,418 units sold, were up 197 per cent from February 2019 and 48 per cent above the 10-year average. It was the second strongest February of the past 40 years for new condominium apartment sales, after the record high of February 2017.

February new home sales by municipality

February 2020

Condominium units

Single-family homes

Total

Region

2020

2019

2018

2020

2019

2018

2020

2019

2018

Durham

89

21

4

489

97

49

578

118

53

Halton

227

22

46

380

275

113

607

297

159

Peel

545

127

103

289

193

35

834

320

138

Toronto

1,300

587

1,050

10

4

6

1,310

591

1,056

York

257

57

641

1,079

117

55

1,336

174

696

GTA

2,418

814

1,844

2,247

686

258

4,665

1,500

2,102

 Source: Altus Group

“Following on a month of strong new home sales in February, our industry and our customers are facing a time of challenges and uncertainty due to COVID-19,” says David Wilkes, BILD president and CEO. “We are working diligently to coordinate responses with provincial and municipal authorities, protect workers and customers and ensure that we continue to fulfil our responsibilities to new-home buyers. One of those responsibilities is building enough homes to top up depleted inventory and ensure our region’s new home supply keeps up with demand.”

Pent-up demand

“Prior to the uncertainty due to the COVID-19 situation, the new-home sector in the GTA was on track for a strong sales performance in 2020,” adds Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “Low mortgage rates were triggering the release of pent-up demand that had been building on the back of strong employment and population growth, which helped boost February sales.”

In February, the benchmark price for new condo units was $961,268, which was up 21.3 per cent over the last 12 months, and the benchmark price for new single-family homes was $1.09 million, down 2.2 per cent over the last 12 months.

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Now is the time to fix the housing supply problem in the GTA

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Now is the time to fix the housing supply problem in the GTA

Every month, BILD reports on new home sales in the GTA. This data is collected and compiled by the Altus Group and provides us with important information on how many new homes were sold, the average asking price and the remaining number of new homes in builders’ inventory. It is an important tool that gives those involved in housing, real estate and development real time insight on how government housing regulations, fiscal policy, economic conditions and consumer confidence influence the housing market in the region.

BILD recently released the 2019 year end new homes sales data, showing that GTA new home sales rallied from the 22-year low of 2018. Overall in 2019, there were 36,471 new homes sold in the GTA. Only 24,855 new homes had been sold the previous year, which made 2018 the year with the lowest number of new home sales in the GTA since 1996.

There were 26,948 condominium apartments, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, sold in 2019, up 27 per cent from 2018 and 16 per cent above the 10- year average. Single-family homes, including detached, linked, and semidetached houses and townhouses (excluding stacked townhouses), accounted for 9,523 new home sales, up 157 per cent from 2018 (the lowest year for new single-family home sales since comprehensive tracking started in 1981), but still 30 per cent below the 10-year average.

So what do these numbers mean? At first glance, it looks like new home sales were solid for 2019, but that was not the case. That’s what happens when the market recovers from the 22-year low of the previous year and new home sales remain 30 per cent below the 10-year average. What we saw in 2019 was a release of pent up demand from 2018. We need to keep our focus on increasing housing supply, making sure that there’s a solid inventory base to ensure that housing prices remain stable. Consumer demand has not diminished; in fact, as the region continues to grow we can be sure it will remain robust and we must make housing more affordable for the average person living in the GTA by eliminating barriers and build homes faster. We have to accept that demand will continue to increase, and both the building industry, municipal governments, and the provincial government must work together to keep all types of housing (rental and ownership) within reach.

On average, it takes 10 years to build a typical highrise project and 11 years to complete a lowrise project in the GTA. New homes must be built faster. Layers of bureaucracy, outdated zoning, and complex policies and procedures have created barriers to the efficient operation of the housing market that have resulted in a generational shortfall of housing. These obstacles have delayed the development of new homes, and have contributed to the increase in housing costs experienced over the past decade.

In addition, demand for new housing has increased as the Greater Toronto Area has become one of the most desirable places to live. The GTA is the fastest growing region in North America, with an estimated 115,000 new residents arriving every year. The population of the GTA is set to grow by 40 per cent, or an estimated 9.7 million people, by 2041; that timeline is not far away.

In May, 2019, the Ontario government announced the Housing Supply Action Plan, representing the first major step by any provincial government to address the supply challenges facing the housing market and their effects on affordability. The proposed changes also acknowledge the cumulative effect that taxes, fees and charges have on housing affordability. Land transfer taxes, HST, parkland fees and development charges collectively add $124,000 to the cost of an average new condo in the GTA, and $222,000 to the cost of an average new single- family home.

This is not a time for small plans. The numbers don’t lie. This year, all levels of government and our industry must continue to work together so we can fix the housing supply problem in the GTA.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD).

bildgta.ca

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