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New ground-oriented homes surpass $1 million

New ground-oriented homes surpass $1 million

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New ground-oriented homes surpass $1 million

The average price of available new single-family ground-oriented homes in the GTA has now surpassed $1 million, the Building Industry and Land Development Association (BILD) announced February 23, 2017.

In January, the average price of new single-family lowrise homes, which includes detached, semi-detached, row and townhomes, increased to a record $1,028,395, according to Altus Group, BILD’s official source for new-home market intelligence. Prices of new ground-oriented homes grew 25 per cent in just one year.

The average price of a new detached home increased to an unprecedented $1,316,325 in January. Ten years ago, the average price was $444,368. Meanwhile, the average price of a new GTA townhouse was $879,619 last month compared to $328,989 in January 2007.

“The GTA is facing a severe shortage of housing supply, particularly for single-family homes which sell as soon as they come to market,” said BILD president and CEO Bryan Tuckey. “When there aren’t enough homes to satisfy demand, prices increase and that is exactly what has been happening in our region over the last decade.”

There were just 1,524 new ground-oriented homes available for purchase in builders’ inventories at the end of January, a near record low. At this time in 2007, there were 18,400. Meanwhile, supply of new detached homes declined to 534, the lowest ever recorded in the GTA; 10 years ago there were 12,242.

The average price of new condominium apartments in stacked townhouses and midrise and highrise buildings in the GTA reached $507,511 in January, also setting a new record. The average price per square foot reached an unprecedented $625. New apartment prices have grown 13 per cent since January of last year, increasing by almost $60,000. A decade ago the average price was $322,569.

“Our industry is implementing provincial policy by building more condominium apartments and less ground-oriented housing,” Tuckey said. “A decade ago, condominiums represented just 42 per cent of available inventory compared to 88 per cent in 2017.”

After years of healthy supply, the number of new condominium apartments available for purchase began to decline. In January 2017 there were 11,529 new condominiums in builders’ inventories across the GTA, which is a 10-year low.

Overall there were 13,053 new homes in builders’ inventories across the region in January compared to 31,461 a decade ago.

“Today in the GTA there are less than half the overall number of new homes available to purchase than there were a decade ago,” Tuckey said. “Lack of serviced developable land, excessive red tape and frequent delays in the development approval process have all been large contributors to our housing supply crisis.”

New condominium apartment sales were the strongest recorded for a January following a record year in 2016. There were 1,199 homes sold across the GTA in January, most of which were sold in the City of Toronto. That is an 11 per cent increase over last year.

“Demand for condominium apartments is coming from a variety of sources,” said Patricia Arsenault, executive vice president of research consulting services at Altus Group. “Among them: end users who prefer the locations and amenities afforded by condominium apartments, families who might have opted for a single-family home but have been shut out of that segment due to lack of available product, and investors who are the key providers of new rental supply for the GTA’s growing population.”

Sales of new single-family homes declined to one of the lowest Januarys in the last decade. There were 741 homes sold across the region of which 369 were detached.

January New-Home Sales by Municipality:

January ’17

Lowrise

Highrise

Total

Region

2015

2016

2017

2015

2016

2017

2015

2016

2017

Durham

147

337

185

10

52

34

157

389

219

Halton

337

122

154

152

42

105

489

164

259

Peel

292

239

209

43

74

82

335

313

291

Toronto

25

98

33

605

774

750

630

872

783

York

330

251

160

117

138

228

447

389

388

GTA

1,131

1,047

741

927

1,080

1,199

2,058

2,127

1,940

Source: BILD

bildgta.ca


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GTA grows but housing supply dwindles

GTA grows but housing supply dwindles

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GTA grows but housing supply dwindles

by Bryan Tuckey

More than 35 million people now call Canada home, data released by Statistics Canada last week suggests. That’s five per cent growth since 2011 — the highest rate of growth among G7 countries.

About two-thirds of our population increase was from immigration, says Statistics Canada. Many newcomers settle in the GTA, which sees a net migration of 100,000 people each and every year.

None of the census data is surprising. A lot of the overall growth in the GTA was outside of Toronto in surrounding municipalities such as Brampton, Milton and Bradford West Gwillimbury.

Toronto itself also saw significant growth, especially downtown near the lakeshore between the Don and Humber Rivers, and along the Yonge subway corridor. These are areas that have seen significant condominium construction in the last decade as our industry complies with the province’s intensification policy.

The development and home building industry is highly regulated; we don’t just build what and where we want to. Rather, the policies and plans of multiple levels of government determine how land gets used, and where and how development occurs.

The province’s Growth Plan for the Greater Golden Horseshoe, released in 2006, was designed to move away from the suburban-oriented development pattern that we had been following to more intensive, urban development. The plan mandates development be denser and use less land.

BILD members have become very good at implementing the Growth Plan and have moved from building mainly lowrise homes, such as single-family detached, semi-detached and townhouses, to building at least as many highrise homes.

In 2002, the biggest year ever for new home sales in the GTA, there were 53,660 homes sold, of which 72 per were lowrise and 28 per cent were highrise.

Last year, there were 47,161 new homes sold in the GTA: 62 per cent of them were highrise units and 38 per cent were lowrise homes, according to Altus Group. In fact, 2016 was a record-breaking year, and the 29,186 condo units sold across the GTA were the most ever sold — 30 per cent more than in 2015.

While a lot of the new condo sales were in downtown Toronto, there were also many sold in developments outside of the core. For instance, there were 2,324 new condo units sold in Vaughan last year, according to BILD member Urbanation Inc.

Yet, the number of new condos available for sale across the GTA is at a 10-year low. Based on the current pace of sales, there is only about 4.4 months of condo unit supply, well below the 10 months needed for a balanced market, according to Urbanation, which has been tracking the highrise market since 1981.

Prices for new highrise homes also reached record levels in 2016, averaging $507,128, while average condo suite sizes grew to 826 square feet, and the average price per square foot increased to $614. A year ago, the average price per square foot was $584 while the size of an average suite was 775 square feet.

The lack of supply will lead to a slowdown in sales and Urbanation is predicting only 23,000 new condo unit sales in 2017. That is not nearly enough to meet demand as the region continues to grow.

Bryan Tuckey is president and CEO of the Building Industry and Land Development Association (bildgta.ca). Find him at twitter.com/bildgta facebook.com/bildgta and bildblogs.ca.


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Building award-winning communities in North America

Building award-winning communities in North America

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Building award-winning communities in North America

by Bryan Tuckey

The GTA is home to some of the best building and development industry professionals in North America.

The work of local members of the industry frequently receives national and international praise and recognition. In January 2017, several of our builders, developers, designers and marketers were recognized south of the border at the National Sales and Marketing Awards. Known as The Nationals, this annual competition honours the best in the industry across North America.

BILD members have a long history of winning at the Nationals and this year our members received 44 silver and 10 gold awards in a range of building, design and marketing categories.

One of the areas in which members did exceptionally well was in the architectural design of attached homes. Minto Communities received two silver awards for their work on two Toronto-based developments. One of them was Bside, a condo development at Bathurst and Front Streets, and the other for Long Branch, a collection of stacked townhomes in the city’s west end. The gold award in the Best Architectural Design of an Attached Home Plan category was presented to BILD member Brookfield Residential for a four-storey contemporary condominium project they are building in the U.S.

Local developers Empire Communities and Tridel were each honoured with two gold awards. Empire won the Best Social Media Campaign and Best Computer Generated Sales Tool awards for Avalon, a community of townhomes and single-family detached homes in Caledonia. Meanwhile Tridel was recognized in the Best Print Ad Campaign and Best Brochure Lifestyle Magazine categories for SQ, a new condominium development in Toronto’s Queen West neighbourhood.

Toronto-based marketing agency Montana Steele won the most trophies among BILD members, collecting 19 silver awards and two gold awards. Six of those silver awards were for Rodeo Drive, a condominium development in North York, which earned them a gold award in the Best Print Ad category.

Fred Losani, right, accepts the Building Industry Community Spirit Award.
Fred Losani, right, accepts the Building Industry Community Spirit Award.

A highlight at this year’s Nationals was the presentation of the prestigious Building Industry Community Spirit Award to Losani Homes for its work with the Losani Family Foundation. The annual award is presented to a builder-supported non-profit program or charity and is judged on its originality, concept and execution.

Losani Homes is a builder from Stoney Creek that has been developing new communities in and around the Hamilton area since 1976. It formed the Losani Family Foundation in 2013 with the help of the Hamilton Community Foundation to help support Losani Homes’ various charity work. Since then the foundation has worked with a number of local charities and initiatives such as the Bruce Trail Expedition for Kids and the Toy and Turkey Drive.

More recent efforts saw the Losani Family Foundation partner with Free the Children, a Thornhill-based charity helping impoverished children in developing countries. Last year the foundation took its efforts to Ecuador where several members of the Losani family helped build a classroom and a medical facility that will help service 12,000 people from surrounding villages deep within the Amazon jungle.

Bryan Tuckey is president and CEO of the Building Industry and Land Development Association (BILD). He can be found on Twitter (twitter.com/bildgta), Facebook (facebook.com/bildgta) and BILD’s official online blog (bildblogs.ca).


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Toronto’s new home prices hit fresh record as housing shortage nears ‘crisis levels’

Toronto’s new home prices hit fresh record as housing shortage nears ‘crisis levels’

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Toronto’s new home prices hit fresh record as housing shortage nears ‘crisis levels’

The Globe and Mail

Amid record prices for new detached homes that soared 27.5 per cent in 2016, Toronto builders say they could sell even more houses but they just don’t have them.

The Building Industry Land Development Association (BILD), which has about 1,400 members in the land development, home building and professional renovation industry, says the average sale price of a detached home in the Greater Toronto Area climbed about $273,000 in 2016 to $1,264,604.

The industry group said 2016 was also a record year in terms of the lack of inventory for all housing while sales levels and prices of high-rise condo set new highs — as consumers continued to look to those units to escape prices in the low-rise sector of the market.

http://business.financialpost.com/personal-finance/mortgages-real-estate/torontos-new-home-prices-hit-fresh-record-as-housing-shortage-nears-crisis-levels


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Industry Report : Building Cities And Creating Jobs

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Industry Report : Building Cities And Creating Jobs

The building, development and renovation industry builds homes and cities and that creates jobs and provides employment for thousands of GTA residents.

The industry is one of the largest employers in our region. Building and renovating involves a number of different professionals all working together. Last year alone, more than 196,000 people were employed in a wide variety of on-site and off-site jobs.

In addition to builders, developers and a wide range of tradespeople, the industry employs everyone from urban planners and lawyers to marketers and designers and dozens more. In fact, each of those construction cranes you see across the city represent up to 500 jobs.

As the GTA continues to grow by up to 100,000 people every year, so does its need for new homes. That means opportunities for people looking at careers in building, development or renovation. These careers include office work, jobs on construction sites, positions in sales offices and in many other well-paying professions. In 2015, people who work in the industry collectively earned $11.4 billion in wages.

The Building Industry and Land Development Association (BILD) represents all facets of the industry and our 1,450 member companies include more than just builders and developers. Some of our members manufacture and supply the materials used to build homes, some plan and prepare the site for development, and others assist purchasers in the homebuying process. These are just a few examples of all the people involved in building great cities.

Each year, BILD holds a number of award programs to recognize excellence in the industry. One of them is our Associate Awards, which recognize members for their quality of service, professionalism, leadership and innovation when working with builders or renovators. What makes this award program special is that nominees are evaluated by their clients as opposed to a panel of judges. The Associate Awards recognize members in three distinct categories which reflect the diversity of our membership. They include Manufacturer or Supplier of the Year, Trade Contractor of the Year and Service Professional of the Year.

This year’s Manufacturer or Supplier of the Year award was presented to Shipway Stair Ltd. The Burlington-based stairs and rails manufacturer received lots of praise from clients, particularly when it comes to its communications, products and service.

The Trade Contractor of the Year this year was presented to Vaughan-based N. De Luca Plumbing. Their clients were very happy with how approachable, professional and hard working their team is. The company is receiving this award for the second year in a row and the third time since 2012.

Avid Ratings Canada won the Service Professional of the Year award for the second time in three years. The company helps members of the building industry enhance their custom experience by designing virtual tours, collecting data for surveys and assisting with social media outreach. One of its past clients even said there is no better firm in the industry.

I’m very proud to work in an industry in which such a diverse group of professionals all work together to build complete communities for people to live, work and play in.

BRYAN TUCKEY is President and CEO of the Building Industry and Land Development Association (BILD) and is a land-use planner who has worked for municipal, regional and provincial governments. He can be found on Twitter (twitter.com/bildgta), Facebook (facebook.com/bildgta), and BILD’s official online blog (bildblogs.ca).

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Conquering your winter renovation

Conquering your winter renovation

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Conquering your winter renovation

By Bryan Tuckey
Building Industry and Land Development Association

Winter might seem like an unusual time to undertake a renovation but with the right knowledge and a bit of preparation it can be a great time to add value to your home.

The secret to a successful winter renovation is good planning and working closely with your renovator, says Sam Lapidus, RenoMark renovator and chair of BILD’s Renovation and Custom Builder Council.

Talking to your renovator in advance about potential challenges can help you save time and money in the long run. Snow and cold weather are two of the biggest factors in a winter renovation and they require precautionary measures so nothing is left to chance.

Major renovations often require you to move out of your home for a few weeks. To ensure that your contractor has easy access to and from your home you’ll need to make arrangements for shovelling snow and salting steps in your absence. Some renovation companies may offer the service but you’ll need to discuss it in advance. It may come at an added cost, so make sure it is noted in your renovation contract.

When you move out of your home it will likely cool down significantly, even if the heat is still on. This increases the chance of water freezing inside your pipes, which could cause them to burst. To minimize the risk, have a plumber heat the water line coming into your house or call your municipality to shut the water off at the street side.

Homeowners doing a winter renovation in semi-detached houses or townhomes need to be mindful of how it may affect their neighbours. These types of homes have shared walls, and if the temperature in your home drops significantly it can affect the comfort level of those living on the other side of the wall. If the shared wall is not properly insulated, talk to your renovator about installing some temporary insulation to prevent heat loss. This is another issue that should be discussed in advance as it may result in additional fees.

Special precautions may be required when renovating homes with flat roofs. Major renovations or additions may compromise the structural durability of the home. Snow can build up on the roof and if your home is not structurally finished it may not hold up the weight. For an added fee, your renovator can have someone shovel the snow or have an electrician install a specialized heater. After the renovation you can choose whether to remove the heater or leave it to prevent snow permanently.

It is very important that your contract outline the full scope of work and all associated costs. Avoid renovators who urge you to forego a written contract. It’s a sign that you are not working with a professional. Verbal agreements make it hard for you to hold your renovator accountable for sub-par work and you will not have a point of reference if there is a conflict over payment.

Make sure you always work with a professional renovator. There are hundreds of them across the GTA. A good place to find one is at renomark.ca – home of the national RenoMark program. All RenoMark renovators agree to abide by a Code of Conduct, which holds them to a number of obligations. In addition to providing a written contract, they offer a minimum two-year warranty, are covered by at least $2 million worth of liability insurance and carry all applicable licenses and permits.

Your home is your largest asset so it deserves a pro, no matter what time of year it is.

Bryan Tuckey is president and CEO of the Building Industry and Land Development Association (BILD).

He can be found on Twitter (twitter.com/bildgta), Facebook (facebook.com/bildgta) and BILD’s official online blog (bildblogs.ca).


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Industry Expert: Reno Rebates

Industry Expert: Reno Rebates

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Industry Expert: Reno Rebates

by Bryan Tuckey

Photography by bigstock.com

With a little research, GTA homeowners will find a number of renovation grants that offer savings to their home improvement projects

There are numerous grants available to homeowners in the GTA to make their renovation easier financially.

Programs are offered by different levels of government and partner organizations, and range from a few hundred dollars to several thousands.

If you own a home in the city of Toronto, you can take advantage of a number of programs to help reduce the cost of your renovation. One such incentive is the Basement Flooding Protection Subsidy Program. The city offers owners of single-family, duplex and triplex residential homes a financial subsidy of up to $3,400 per property to install flood protection devices.

Another home renovation savings initiative offered by the city of Toronto is the Home Energy Loan Program (HELP), which assists homeowners in improving their home’s energy efficiency. HELP provides incentives of up to $650 for replacing furnaces and air conditioners with high-efficiency units.

If you’re thinking about installing a green or cool roof on your home, you can take advantage of the city’s Eco-Roof Incentive Program. Eligible green roof projects can receive $75 per square metre and up to a maximum of $100,000. Eligible cool roof projects get between $2 and $5 per square metre, up to a maximum of $50,000.

To apply for any of the renovation savings programs offered by the city of Toronto, visit toronto.ca and type the program’s name into the search bar.

The Ontario government also offers a number of home renovation incentives, including the Healthy Homes Renovation Tax Credit. If you are over 65 and are planning a renovation to make your home safer and more accessible, you can claim up to $10,000 worth of eligible home improvements on your tax return. For more information, search for Healthy Homes Renovation Tax Credit at ontario.ca.

Sometimes governments partner with others to provide incentives. The Ontario government recently partnered with Enbridge to create the Home Energy Conservation (HEC) Program, which offers grants of up to $2,100. The program is open to people using natural gas, oil, propane boilers/furnaces or wood stoves.

HEC can provide $150 towards a Home Energy Audit and up to $1,950 for upgrades like insulation, air sealing, window replacement, heating system or hot water, just to name a few. Visit knowyourenergyscore.ca to check if you’re eligible.

Talk to your renovator if you are thinking of applying for any government renovation programs or incentives. Professional renovators can help you better understand the program, let you know if you are eligible and walk you through the application process.

One of the advantages of working with professional renovators is that you can benefit from their knowledge and experience. Take that into consideration when hiring your renovator and be sure to ask lots of questions.

For a list of professional renovators in the GTA, visit renomark.ca. All renovators and trade contractors abide by a renovation-specific code of conduct that includes things like providing a written contract, offering a minimum $2 million in liability insurance and providing two years warranty on all work.

Bryan Tuckey is president and CEO of the Building Industry and Land Development Association and a land-use planner who has worked for municipal, regional and provincial governments.

Follow him on Twitter @bildgta, facebook.com/bildgta, and bildblogs.ca.

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