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Governments of Canada and Newfoundland and Labrador Celebrate Ten New Affordable Housing Units in Bishop’s Falls

Comments: 0April 16th, 2010 by admin

Posted by Moishe Alexander

The Honourable Peter MacKay, Minister of National Defence and Minister Responsible for Newfoundland and Labrador, on behalf of  the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and the Honourable Tom Hedderson, Minister of Transportation and Works and Minister Responsible for Newfoundland Labrador Housing (Housing), today announced $350,000 to support the construction of ten new housing units in Bishop’s Falls.

Funding for this project has been made available through Canada’s Economic Action Plan. The Federal and Provincial governments are contributing equally to this overall investment of $58 million under the amended Canada – Newfoundland and Labrador Affordable Housing Program Agreement.

“Through Canada’s Economic Action Plan, our government is taking concrete action to help ensure our economic recovery and create the conditions for long-term growth,” said Minister MacKay. “Funding new construction projects like these projects will not only improve the overall housing conditions, and quality of life of its residents by keeping their homes safe and affordable for years to come, but also help stimulate the local economy and create jobs.”

“We believe sound investments in projects such as this affordable housing development in Bishop’s Falls, will provide more opportunities for seniors and persons with disabilities to live independently within their communities,” said Minister Hedderson. “Through Newfoundland Labrador Housing, the William’s Government, along with our federal and private sector partners, remains committed to further investments in affordable housing options for seniors and persons with disabilities.”

“We are pleased to be a partner in this enterprise and to be able to provide suitable affordable for lower-income households in the Exploits area,” said James Joy, of Exploits 2000 Inc, Grand Falls – Windsor. “This partnership between the federal and provincial governments and our company has also helped create much needed employment in our area.”

The project will involve the construction of ten two-bedroom units, including one unit for persons with disabilities on Hampton’s Hill in Bishop Fall’s. The federal/provincial funding includes $315,000 under Housing for Low-Income Seniors as well as $35,000 from Housing for Persons with Disabilities. The proponent will provide the remaining funding to cover the cost of the project. The anticipated completion date for this project is October 2010.

Canada’s Economic Action Plan provides $475 million, over two years, to build new rental housing for low-income seniors and persons with disabilities. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.

One of the key objectives for the Provincial Government is to stimulate the development of affordable rental housing in the private, public and non-profit sectors. Provincial priority is on rental housing for seniors, persons with disabilities and those who require supports to live independently in the community.

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Posted in CMHC, Canada, affordable housing

National Rental Vacancy Rate Increases in October 2009

Comments: 0December 18th, 2009 by admin

Posted by Moishe Alexander

The average rental apartment vacancy rate in Canada’s 35 major centres increased to 2.8 per cent in October 2009 from 2.2 per cent in October 2008, according to the Rental Market Survey released today by Canada Mortgage and Housing Corporation (CMHC).

“Demand for rental housing in Canada decreased due to slower growth in youth employment and improved affordability of homeownership options”, said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Rental construction and competition from the condominium market also added upward pressure on vacancy rates.’

Between October 2008 and September 2009, 15,657 rental units and 45,655 condominium units were completed in Canada’s 35 major centres. Condominiums are a relatively inexpensive type of housing for renters moving to home ownership. Also, some condominium apartments are owned by investors who rent them out.

Provincial vacancy rates in October 2009 increased in eight out of ten provinces. The largest increases were in Alberta where the vacancy rate increased by 3 percentage points to 5.5 per cent and British Columbia where the vacancy rate rose by 1.8 percentage points to 2.8 per cent. Vacancy rates decreased by 0.1 of a percentage point in Newfoundland and Labrador to 1.0 per cent, and by 0.4 of a percentage point in Nova Scotia to 3.1 per cent.

The centres with the highest vacancy rates in 2009 were Windsor (13 per cent), Abbotsford (6.1 per cent), Peterborough (6.0 per cent), Calgary (5.3 per cent), and London (5.0 per cent). On the other hand, the major urban centres with the lowest vacancy rates were Regina (0.6 per cent), Québec (0.6 per cent), St. John’s (0.9 per cent), Winnipeg (1.1 per cent), Kingston (1.3 per cent), and Victoria (1.4 per cent).

The highest average monthly rents for two-bedroom apartments in new and existing structures were in Vancouver ($1,169), Calgary ($1,099), Toronto ($1,096), and Ottawa ($1,028). The lowest average monthly rents for two-bedroom apartments in new and existing structures were in Saguenay ($518), Trois-Rivières ($520), and Sherbrooke ($553).

Year-over-year comparison of rents in new and existing structures can be slightly misleading because rents in newly-built structures tend to be higher than in existing buildings. However, by excluding new structures, we can get a better indication of actual rent increases paid by most tenants. The average rent for two-bedroom apartments in existing structures increased in all major centres. The largest rent increases in existing structures were recorded in Regina (10.2 per cent), Saskatoon (8.3 per cent), Victoria (5.0 per cent), and St. John’s (4.9 per cent). Overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased by 2.3 per cent between October 2008 and October 2009.

CMHC’s October 2009 Rental Market Survey also covers condominium apartments offered for rent in Calgary, Edmonton, Montréal, Ottawa, Québec, Regina, Saskatoon, Toronto, Vancouver, and Victoria. In 2009, vacancy rates for rental condominium apartments were below two per cent in seven of the 10 centres surveyed. Rental condominium vacancy rates were the lowest in Toronto, Saskatoon, and Ottawa. However, Regina and Edmonton registered the highest vacancy rates for condominium apartments at 3.0 per cent and 3.1 per cent in 2009, respectively.

The survey showed that vacancy rates for rental condominium apartments in 2009 were lower than vacancy rates in the conventional rental market in Ottawa, Saskatoon, Vancouver, Toronto, Edmonton, and Calgary. The highest average monthly rents for two-bedroom condominium apartments were in Toronto ($1,487), Vancouver ($1,448), Calgary ($1,310), and Victoria ($1,223). All surveyed centres posted average monthly rents for two-bedroom condominium apartments that were higher than average monthly rents for two-bedroom private apartments in the conventional rental market in 2009.

CMHC’s Rental Market Survey also gathers information on monthly rents in types of dwellings other than private apartments and condominium apartments, such as duplexes, and accessory apartments for 15 major centres.

The Rental Market Report for major centres also includes an affordability indicator for most centres. The rental affordability indicator is used to examine trends in rental affordability within a centre.

CMHC’s Rental Market Survey is conducted twice a year, in April and in October, to provide vacancy rate and rent information on privately initiated apartment structures containing at least three rental units. However, due to possible seasonal factors, the April and October results are not compared.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

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Posted in CMHC, Canada

Housing Market Growth to Continue

Comments: 0November 5th, 2009 by admin

Posted by Moishe Alexander

The St. John’s area housing market has been driven by a timely blend of resilient consumer spending, large capital projects and improved employment, which have resulted in reducing out-migration and continued population growth. Despite the recent global economic uncertainty, strong fundamentals have, and will continue to support demand for housing throughout the remainder of 2009 and in 2010. Accordingly, growth in the local housing market is expected to continue. The buoyant local renovation sector will be stimulated by the home renovation tax credit. Also, historically low mortgage rates have reduced the cost of borrowing, but some buyers remain sensitive to the considerable price growth that has occurred in this market. Personal income growth has been aided by wage gains and tax cuts and this income growth has offset higher house prices somewhat and will continue to provide support to housing starts in 2010. Overall, the positive outlook for the St. John’s area housing market will be reinforced by favourable trends in demographic and economic fundamentals, as well as consumer spending and on-going economic momentum supported by a lengthy list of major capital projects.

Despite the global economic situation over the past year, several planned and realized major capital projects continue to inject stimulus into the local economy and contributed to increased resiliency on the part of consumers. Consumers, a key component of economic growth in 2008 through related spending on retail, auto and housing activity, have been more cautious in 2009, but still remain positive overall, as spending activity continues to show growth. However, natural declines in offshore oil production will dampen GDP growth this year and next. During 2008, oil production declined nearly seven per cent over 2007 levels. This year, oil production is expected to decrease 21 per cent, with declines at all three producing oil fields. Weaker offshore oil production will dampen growth over the 2009 to 2010 period, although increased royalties received by the province will contribute to economic growth. Weak commodity prices have resulted in decreased and/ or suspended mineral exploration and mining extraction activity in the interior region of Newfoundland, as well as Labrador this year. However, global resource prices have begun to rise again, which will add to economic growth in 2010. Coming off the heels of real GDP growth of 7.9 per cent in 2007 for NL and additional growth of 1.8 per cent in 2008, expect a 3.8 per cent decline in 2009 real GDP, led by lower oil, mineral and newsprint exports. A two per cent rebound in economic growth is expected in 2010.

With record sales posted during the past several years, the St. John’s area resale market is expected to cool slightly in terms of total unit sales. Accordingly, the forecast calls for MLS® sales of 3,450 units this year, down ten per cent from 3,835 in 2008, with 3,575 sales expected in 2010. With many newly built homes now selling through the MLS® system, healthy residential construction activity will continue to have a positive impact on total MLS® sales. Unprecedented housing market activity in 2008 favoured sellers, with a market characterized by above average unit sales, very low available inventory and 20 per cent average price growth. However, throughout this year, the market has favoured buyers. A marginal downward trend in sales has resulted in more inventory, whilprices have continued to advance. In fact, active listings or inventory have trended 33 per cent higher in 2009 compared to last year. With demand expected to cool only slightly over the forecast period, unit sales will remain historically strong, but will noexceed recent record levels. While increasingly favourable for buyers, weaker resale market conditions have proved challenging for some sellers, resulting in fewer offers on higher priced listings, with offers often significantly below list price. With increased inventory available tchoose from, many buyers have farewell in their search for an existing home this year and in some cases, people are being swayed away from the higher-priced new home market. The growing new versus existing house price premium has resulted in increased first-time buyer activity within the lower-priced resale market and this trend will likely continue, with prices expected to head higher.

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Posted in CMHC, Canada, Ontario

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