Posts Tagged ‘Sudbury’

Sudbury has become one of the fastest growing cities in Ontario with its flourishing mining industry it has become increasingly difficult to keep up with the housing demands.

On July 14, 2009 Barb Millsap of Raiffeisen Non-Profit Housing Corporation along with Minister of Industry Tony Clement,Minister of Community Safety and Correctional Services Rick Bartolucci,and Mayor John Rodriguez announced that the Government of Canada, the Government of Ontario, and the City of Sudbury would be beginning a project for the building of 80 low income housing units.

“The city is very pleased with this ground breaking ceremony” said Moishe Alexander CEO of the CFC. Many residents of Sudbury said this project was overdue. There are many families in Sudbury that are struggling to make their rents because of the lack of residential properties available the housing costs just keep going up and up. With this new low income housing initiative and hopefully many more to follow there will be some kind of relief to these families that cant keep up with the constant inflation on the housing market.

The project has been budgeted for $11.8 million whitch includes $3.3 million from the Canada and Ontario Affordable Housing Program. The Canada and Ontario Affordable Housing Program has a commitment from both levels of government for $301 million whitch will help build some 20,000 houses in Ontario.

“The City of Greater Sudbury is very excited about the possibilities afforded to our community by the generous support of CMHC and Municipal Affairs and Housing,” said Greater Sudbury Mayor John Rodriguez. “In difficult times, it is always good news when the Canadian community rallies together to put together solid projects that will help citizens achieve greater quality of life and living.”

“The Government of Canada is committed to making affordable housing available in Ontario and across Canada for those who need it the most,” said Minister Clement. ”These new units in Sudbury provide low-income individuals and families with access to suitable, affordable housing that meets their specific needs.”

“The construction of safe, affordable housing is a priority for the McGuinty government,” said Minister Bartolucci. “We are proud to support initiatives such as this, which will provide long-term affordable housing for vulnerable persons in Sudbury.”

“Today’s announcement marks the culmination of our 14 year dream, and two years of focused development work to build Raiffeisen Phase 2 adjacent to our Phase 1 co-operative,” said Barbara Millsap, President of Raiffeisen Phase 2. “We are grateful to all three levels of government who have contributed to the funding of our 80-unit one and two bedroom affordable apartment complex overlooking the downtown center of the City of Greater Sudbury.”

This project is truly going to help the City of Sudbury whitch because of its tremendous growth in the past five years has become an increasingly more difficult place to find low income housing. Now that the 14 year dream of Raiffeisen Phase 2 has become a reality everyone can benefit from a better City.

January 15, 2009 — Moishe Alexander’s review on how the current world economy and Canadian economic turndown is affecting the Sudbury Ontario housing market

The Big Nickel in Sudbury, Ontario - Credit "Smith", Flickr

The Big Nickel in Sudbury, Ontario - Credit "Smith", Flickr

Sudbury Ontario has had a serious increase in housing starts and is rising above the historical low levels of housing starts of years gone by. CMHC is forecasting 525 single-detached starts, 30 semi-detached units, 40 apartment condominium ownership units, and 120 apartment rental units, for a total of 715 housing starts for 2008. This will increase by 600 units in 2009.

DENSER FORMS OF CONSTRUCTION EXPECTED

CMHC expects the with a vacancy rate under 1% and no publicly assisted rental housing starts in the year 2008 or 2009, the type of new construction for new homes will be the low density form of housing, which will be the dominant type of new housing starts in the Greater Sudbury area.

SUDBURY RESALE MARKET EASES

Sales in Sudbury, from MLS, have been moving steadily in 2008. There are several contributing factors, the significant one is the peek that resale’s have seen in 2007 and 2008. Not to mention, that employment has now leveled off first time buyers are starting to evaporate from the Sudbury area. CMHC expects 2530 sales of resale homes in he year ending 2008, which would be 8.6% less than the same period last year.

Clearly the problem is supply and demand, which historically affects the growth and the volume of resale home sales.

SUDBURY MOVING TO BALANCED MARKET

Although there has been economic growth at moderate levels, over the same period last year, a stunning prediction was made by Canada Mortgage and Housing Corporation in that even though employment will be strong and there will be substantial population growth in Sudbury and surrounding areas in 2009. This will still only sustain moderate growth and the balancing of the market.

Canada Mortgage and Housing Corporation predicts that there will be continued growth in 2009 in major commercial projects with over $20 billion worth of projects that are commencing in 2009 for Sudbury and the surrounding areas, concentrated in the mining areas.

MORTGAGE RATES

Canada Mortgage and Housing Corporation predict that interest rates will decline by a further 25-50 basis points from their current levels in 2009. However, due to the cost of borrowing to the Canadian banks from the markets, the mortgage interest rate will marginally increase in the latter half of 2009, but not significantly enough to negatively affect the housing market in Sudbury and surrounding areas.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/64363/64363_2008_B02.pdf

January 15, 2009 — Moishe Alexander’s review on how the current world economy and Canadian economic down turn is affecting the Sudbury Ontario rental market

Sudbury, Ontario - Credit Habi, Flickr

Sudbury, Ontario - Credit Habi, Flickr

The Sudbury Ontario rental market has one of the lowest apartment vacancy rate at 0.7% in the country. In fact, the rental town house vacancy rate dropped substantially to 0.2% for 2008. These two figures together leave a net vacancy rate of 0.6%.

It is desperate times for tenants in Sudbury Ontario to find any proper rental accommodations, as there are line-ups at landlord’s offices.

VACANCIES EDGE UP , BUT SUDBURY MARKET STILL TIGHT

The Canada Mortgage and Housing Corporation reported that Sudbury Ontario is experiencing an increase need for rental housing in all sectors. Much of this is contributing to the demand by the significant post secondary population in the area along with a strong local labor market, especially in mining. These statements and figures come from the rental market report issued in 2008 by Canada Mortgage and Housing Corporation. More than 50,000 people (net migration) moved to Sudbury Ontario last year from other provinces and countries putting additional stress on an already stressed out rental housing market.

VERY LITTLE NEW SUPPLY OF PURPOSE-BUILT RENTAL UNITS OR ANY HIGH RISE RENTAL UNITS

According to Canada Mortgage and Housing Corporation, despite the extreme demand for rental housing in Sudbury Ontario, only 16 purpose-built rental starts occurred in Sudbury and surrounding areas for the first 10 months of 2008. This is caused a panic for tenants and an extreme appreciation in value for single detached homes in Sudbury Ontario.

SEVERAL REASONS FOR CONTINUED LOW VACANCY RATE

The Canada Mortgage and Housing Corporation report states that many factors have combined to keep greater Sudbury vacancies low. Even though there has been falling commodity prices for iron or the mining sector, it has kept demand solid for rental accommodations. Migration continues into the region, attracted by the jobs, post secondary school opportunities, and retirement living. Sudbury boasts the science north attraction and all main hospitals for Northern Ontario that are fully operational are situated in Sudbury.

CONTINUES STRONG RENT INCREASES

The Canada Mortgage and Housing Corporation report states that last fall in Sudbury Ontario, a one-bedroom apartment that used to rent for $782.00, plus utilities is now renting for $850.00, plus utilities, compared to the same period last year. A two-bedroom unit that rented last year for $950.00, plus utilities, is now renting for $1,050.00, which is approximately a 20% increase.

Government sources say that with this increase cost, welfare recipients are hard pressed to rent anything in Sudbury Ontario. Tight vacancy rates in this area of the province have caused rents to increase substantially for the same period last year. However, rent increases in purpose-built apartment rent units were moderate in most areas of the city including Chelmsford and Minnow Lake.

SUDBURY VACANCIES RESUME DOWNWARD DECENT

Canada Mortgage and Housing Corporation is projecting that vacancy rates in Sudbury Ontario and surrounding areas, will remain the lowest in the country in 2009. Mainly due to non-construction of rental units and a significant increase in migration. In fact, Canada Mortgage and Housing Corporation is predicting that the vacancy rate in Sudbury Ontario and surrounding areas for the period ending 2009, will be 0.07%, which is a phenomenal vacancy rate.

SUDBURY’S RENTAL AFFORDABILITY INDICATOR

Canada Mortgage and Housing Corporation affordability indicator will decline to 74 by year-end 2008, which indicates that the value of 100 suggests that 30% of the median income of rental households is necessary to rent a two bedroom apartment, well above the Canadian average.

NATIONAL VACANCY RATE DECREASED IN OCTOBER 2008

Canada Mortgage and Housing Corporation reports that the vacancy rate in Canada’s 34 major centers decreased to 2.2% from 2.6% in October of 2008, for the same period the year before. Vacancy rates were as high as 14.6% in Windsor to a low of 0.3% in Vancouver and Abbotsford BC.

Canada Mortgage and Housing Corporation reports that the highest average monthly rent for a two bedroom apartment is in Calgary, Alberta with a monthly rental cost of $1,148.00 to a low of $543.00 in Sherbrooke, Quebec.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/65780/65780_2008_A01.pdf