Posts Tagged ‘Residences’

Posted by Moishe Alexander

Net migration is forecast to be negative in 2009 in the Windsor CMA. More people have moved away from the area each year since 2004 than have relocated to Windsor. This is expected to continue in 2010 with a net loss of nearly 1,400 people. The first impact can be seen in the rental market as renters are more mobile than owners.

In the rental market the average apartment vacancy rate in Windsor was 14.8 per cent in October 2008 and is expected to remain high in 2009. Contributing to the high vacancy rate are several factors such as higher unemployment among youth, out-migration in search of employment, and competition from homeownership. The average two bedroom apartment rent is forecast to remain flat in October 2009, as landlords refrain from raising rents in an effort to retain existing tenants.

The Windsor-Essex area is marketing the region abroad to boomers and retirees as an exceptional place to live. Visitors and residents extol the many recreational opportunities, affordable housing and temperate climate of the area in the hopes of attracting new residents.

Employment is a key factor supporting housing demand. Windsor’s employment levels have not dropped as sharply as anticipated. The area may be able to get through 2009 with less than a five per cent decline in jobs. However, combined with losses over the past couple of years the workforce has shrunk by almost eight per cent since 2006. Continuing economic weakness in the U.S. and the appreciating value of Canadian dollar are ongoing challenges for the manufacturing and tourism sectors. In turn this has had a detrimental affect on local consumer spending.

The economy has been slow to diversify, however some inroads are appearing. Interest in alternative green energy such as wind and solar are providing new manufacturin opportunities.Non-residential construction employment will grow in 2010 due to investment in major capital projects in the area.

Posted by Moishe Alexander

Kelowna area housing starts and sales of existing homes will move higher in 2010. Expect demand for both new and existing homes to pick up as the BC and Canadian economies record stronger growth.

Housing starts, led by the detached home sector, will increase in next year. Strong price competition from a well-supplied existing home market and rising inventories of new, completed and unoccupied apartment condominium units will constrain multi-family construction during the first half of 2010.

This year’s upswing in existing home sales will carry over into 2010. Competitive pricing, a good selection of listings and favourable interest rates will help sustain growth in demand for existing homes next year. Expect existing home prices to edge back up as demand improves and the supply of listings is drawn down.
Starts of detached homes are forecast

Starts of detached homes are forecast to increase next year, surpassing multi-family construction for the first time since 2004. The inventory of new, completed and unoccupied detached homes has begun to edge back down after climbing to record levels earlier this year. Lower lot prices and construction costs have allowed builders to more effectively compete with existing homes. Lot prices have declined in response to moderating demand and increased supply. New home buyers can look forward to an ample supply of building lots next yeara big change from the shortages seen prior to 2008. Competition from the existing home market will continue to exert downward pressure on new home prices in 2010.

Moderately price homes will remain the focus of new singles demand in 2010. Builders are targeting buyers seeking new detached homes in the $450,000 -$550,000 price range. Fewer buyers of resort-oriented homes and second residences have contributed to less demand for higher priced new homes this year. This segment of the new singles market continues to face especially strong price competition from a well-supplied existing home market.

Apartment rental construction will account for the lion’s share of multi- family starts in 2009 and first half of 2010. With rents up sharply and construction costs coming down, rental construction has become a more viable development opportunity than in recent years. Reduced demand for condominiums may free up some building sites for rental construction. Starts of apartment rental housing will total 140 units this year and another 150-200 units in 2010, the highest annual levels since the early 2000s.

New rentals will face competition from the condominium market in the short term as some developers rent out unsold units and more investor- owned rentals become available. The apartment vacancy rate is forecast to increase this year and next.

Expect condominium construction to pick up later next year as the nventory of new, completed and unoccupied condominium units and supply of existing condominiums is slowly drawn down. Condominium absorption has improved during recent months, but remains sluggish. Apartment condominium starts will total 150-200 units in 2010. The townhouse condominium sector will ollow suit, with more starts next year.

Posted by Moishe Alexander

Friendship Lodge, an $8.1-million, 30-unit apartment building, officially opened today to provide housing and support services for adults who are homeless or at risk of homelessness with mental health and addiction issues in Prince George.

“The Government of Canada is helping make affordable housing available in British Columbia and across Canada for those who need it the most,” said the Honourable Jay Hill, Leader of the Government in the House of Commons and MP for Prince George – Peace River, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC). “These new units in Prince George improve the housing conditions for those at risk of homelessness with access to suitable, affordable housing that meets their specific needs.”

The Government of Canada provided a Canada – BC grant of $2 million, through Canada Mortgage and Housing Corporation. The Province provided $5.9 million in mortgage financing through the Provincial Homelessness Initiative, which integrates support services with housing to help people move beyond temporary shelter to more secure housing, greater self-reliance and appropriate employment. In addition, the Province is providing operational funding of $529,292 for administration including full-time onsite staffing and support services.

“Our government is working towards creating housing opportunities for our most vulnerable citizens so they can live in safe environments providing support services to ensure they get the help and guidance they need,” said Shirley Bond, Minister of Transportation and MLA for Prince George – Valemount. “Friendship Lodge has already made a positive impact on the Prince George community and I look forward to seeing and hearing more about the positive stories that will come from its residents.”

“Homelessness and affordable housing are important issues facing our community and surrounding regions,” said Mayor Dan Rogers, City of Prince George. “The opening of Friendship Lodge and Nutesne Yoh is a good step towards meeting the needs of our most vulnerable.”

Friendship Lodge will be managed and operated by Prince George Native Friendship Centre Society (PGNFCS). The society also manages and operates Nutesne Yoh (the former Astoria Hotel), a 17-unit supportive housing development for women who are homeless or at risk of homelessness with mental health and addiction issues. The Province provided approximately $1-million for the purchase and renovations of Nutesne Yoh and is providing $288,553 annually in operational funding.

“Our partnerships with the federal and provincial governments have allowed the Prince George Friendship Centre Society to officially open a total of 47 units of supportive housing to help struggling men and women find the housing and supports they so desperately need,” said Barbara Ward-Burkitt, M.Ed., executive director, PGNFCS. “I am confident that our newly expanded housing programs and support services will provide path ways for the residents to move toward long-term independence and greater self-reliance.”

In 2008, the Government of Canada committed more than $1.9 billion over five years to improve and build new affordable housing and to help the homeless. Canada’s Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and lending of up to another $2 billion to municipalities for housing-related infrastructure.

Increasing affordable housing, reducing homelessness and helping B.C.’s most vulnerable citizens is a key agenda for the Province of British Columbia. In 2009/10, the Province’s budget for affordable housing and shelters is $469 million, more than four times as much as in 2001.