New building codes on the horizon

The national standards that inform provincial building codes have received their twice a decade overhaul, however some of the changes may not take effect in Alberta for a awhile.

Every five years, Codes Canada (formerly the National Model Construction Codes), under National Research Council Canada, is updated to reflect changing needs and demands in residential and building construction. The 2015 edition includes approximately 600 changes to building, fire and plumbing codes.

Among the major changes to building codes is an increase in the minimum run dimension on interior stairs (the depth of the step) from 210 mm to 254. André Laroche, manager of regulatory solutions for Codes Canada, says this increase may reduce falls by as much as 64 per cent.

Provincial decline led the country

Spending on new residential construction in Alberta totalled $738.3 million in April, down from the $1.025 billion seen the previous April, according to the latest numbers from Statistics Canada.

The 28 per cent decline was the largest fall of any of the provinces, with decreased investment occurring in all dwelling types – although the decline was mainly due to lower spending on single-family dwellings.

In total, spending on new housing construction decreased in five provinces in April. Alberta was followed by Saskatchewan and Manitoba.

New report paints mid-term picture

RBC Economics economist Craig Wright and Robert Hogue say the provincial recession continues to weigh on housing demand in Calgary, and such weakness is increasingly undermining prices.

In the bank's Canadian Housing Health Check released this week, the report's authors note the drop in property values has been generally modest to date; however, the pace of decline has accelerated and further downside remains.

Here are five things to know about contributors to Calgary's housing health so far this year:

CMHC forecasts slowdown in new home construction

Calgary housing starts are forecast to decline for the second consecutive year in 2016, according to a new report.

In its semi-annual housing market outlook released today, Canada Mortgage and Housing Corp. (CMHC) noted reduced investments and layoffs in the energy industry due to low oil prices have spread and have impacted labour market conditions across many different industries. Elevated unemployment rates will slow down migration and income growth, while employment is expected to decline. As a result, housing demand will continue to deteriorate this year.

This, combined with a rise in inventory, will reduce the pace of new home construction. Total housing starts in 2016 will range between 8,400 and 9,400 units, down from 13,033 units in 2015.

New home industry to impact inventory, prices

Homebuyers could be in for more good news over the next several months as industry experts predict oversupply from the new home industry will create more selection and overall price softness.

"With the number of units still under construction, we do expect inventories to continue moving higher in the next couple of months," said Richard Cho, market analyst in Calgary for Canada Mortgage and Housing Corp. (CMHC). "I think the impact that would have on the overall housing market and the resale market is more choice for buyers."

Cho added the number of units still under construction remains elevated, which will lead to the rise in inventory levels.

More than 90 per cent of Airdronians feel safe

Airdronians are generally a happy bunch – at least with local amenities and services, according to the City of Airdrie's 2016 citizen satisfaction survey.

Residents' rating of overall quality of life, quality of services and efficiency of services remained strong, with no significant change from 2015.

To read the full survey, click here.

Small-volume builders say they've been largely unaffected by the economy

Alberta's economic downturn is not impacting all areas of the housing industry in the same way, according to small-volume builders who say their niche is, in fact, busier than ever.

"We are pretty much unaffected by the economy," said Brian Cook of Cook Custom Homes, a Calgary-based micro-builder that designs and builds five homes per year. "There is still money in Calgary and those who work in economy-friendly industries are building homes."

Cook noted one of the only differences he's seeing is in buying strategy, especially with spec homes. When the market was hot, buyers would tour a home once and put in an offer.

Tips heading into patio season

Spring has sprung, meaning the handyman in your family is likely itching to tackle that outdoor project that's been nagging at him or her for months.

With patio season in sight, here are five tips from the City of Calgary's Planning and Development department before tackling your spring reno project:

Backyard decks
Before you start, the City suggests determining whether you're building a pergola or roof structure that is attached to your house. If it's an extension to the house, it's considered an addition, in which case you will need to apply for a building permit. For uncovered decks that are not located on the same facade as a basement walkout entry, the maximum height is 1.5 metres in a developed area. In both the developed and developing areas, the height of a deck cannot exceed 0.3 metres above the main floor level of a house.

New homes construction in Calgary fell by 19.3 per cent in January

According to Statistics Canada, investment in new housing construction declined overall in Alberta by 19.3 per cent in January 2016 over last year.

Spending in the province decreased in all dwelling types except apartment and apartment-condominium buildings, which rose 22.5 per cent to $195 million.

With spending falling from $849.5 million to $685.4 million, Alberta's drop was the largest decline nationwide, with Saskatchewan's 30 per cent decline amounting to a cut of just $30 million.

Apartment to be most affected, says forecast

Calgary construction is expected to slow down this year and next, according to a new forecast from real estate consultant Altus Group.

Detailed in the group's winter forecast, starts in Calgary are predicted to drop from 13,000 in 2015 to 9,200 in 2016 and 9,000 the following year as a result of the province's struggling energy sector.