Construction falls by $135 million

Alberta homebuilders were a little more cautious in January, as new housing construction fell by $135 million in January compared to the same month last year, according to Statistics Canada.

By percentage, Alberta's 16 per cent decline placed it around the middle when compared to other provinces (spending in Saskatchewan fell by 31 per cent). Based on dollar figures, however, the provincial decline was tops in the country.

Nationally, spending on new residential building construction totalled $3.9 billion in December, up 4.8 per cent from the same month a year earlier.

Provincial levels in fourth quarter steady; up on annual basis

Non-residential construction levels in the province surprised many in the fourth quarter of 2015, remaining relatively flat when compared with the same period the previous year at $2.74 billion, according to Statistics Canada.

"Signs of the economic slowdown are all around us in Alberta, but the one surprising indicator where we have yet to see much downturn is construction activity," said ATB Financial chief economist Todd Hirsch.

"Indeed, if a Martian landed in downtown Edmonton or Calgary today, it might well assume that the province is booming."

Construction declines won't diminish market, says industry

Calgary's new housing market in 2016 will be characterized by a gradual slowdown, with highlights coming from first-time buyers, a resurgent luxury sector and continued multi-family growth, say industry insiders.

Canada Mortgage and Housing Corp. (CMHC) forecasts a 16 per cent decline in Calgary housing starts to 10,000 units, following a 23.9 per cent decline Calgary in 2015.
For single-family homes, that means only 4,000 starts this year — the lowest since 1988 – from 4,138 in 2015.

Multi-family starts are predicted to fall to 6,000 units from 8,895 last year.

Despite the slowdown, Canadian Home Builder's Association-Calgary president Wendy Jabusch believes Calgary's housing market will continue to remain healthy, especially as net-migration numbers to the city continue to be positive. The Conference Board of Canada forecasts levels will total 11,747 in 2016, compared with 14,951 in 2015.

Slowdown welcomed by new home industry

Local homebuilders and developers say they are heading into 2016 feeling positive after going through a year that brimmed with economic challenges.

"It's definitely been an interesting year," said Wendy Jabusch, president of the Canadian Home Builders' Association – Calgary Region and a vice-president with Brookfield Residential.

In particular, housing demand fell sharply in 2015 as the provincial economy sputtered through an oil patch slowdown that eventually led to pronounced job losses.

Lanark to house nearly 3,300 residents

Airdrie has approved the first phase of a neighbourhood structure plan in the city's southeast that will be the future home for nearly 3,300 residents.

Dubbed Lanark, the lake community will be located on a 66-hectare parcel of land south of Ravenswood and east of King's Heights and feature more than 1,200 units.

Developer Melcor Development envisions Lanark becoming Airdrie's first fresh-water lake community.

City becomes first to do so in Canada

Calgary has become the first city in Canada to offer complete online residential permit servicing.

Residential ePermit customers applying for new home construction permits (single and semi-detached homes, and associated garages) can now apply for these permits, pay for services and process all their inspections, using a single online tool.

The latest ePermit upgrade provides customers new inspection services and options, which completes a start-to-finish approach to doing business with the City online.

Q&A with SAIT Polytechnic School of Construction dean Scott MacPherson

The homebuilding industry is undergoing unprecedented change – from new technologies to a new-look workforce. Calgary, in particular, has witnessed, and even ushered, much of this change first-hand, thanks in part to SAIT Polytechnic's School of Construction.

CREB®Now recent sat down with the school's dean Scott MacPherson to talk about everything from densification to East Coast dinner parties.

Renovations outpacing new home construction

Canadians spent more on improving homes in 2014 than they did on building new ones, according to a new report by real estate consultant Altus Group.

Spending in Canada reached an estimated $67.8 billion in 2014, reported Altus. In comparison, Canadians spent just $48 billion on new home construction during the same year.

While the number represents a 3.2 per cent increase over 2013, it pales in comparison to the 8.7 per cent annual averages that were seen from 2000 to 2007. Over the last seven years, renovation spending has levelled off to an average increase around three per cent.

A look at Calgary's development and off-site levies

Hopping in the shower or flushing the toilet is going to take its toll on Calgarians' wallets in coming years.

Calgary's current model for development levies is set to recover 50 per cent of the cost of water drained from your tap or toilet. Storm water is 100 per cent covered by developers.

Yet that's not sustainable for utilities coming to the city down the line – in the form of a $14-million shortfall for new water and sewage infrastructure this year.

Resale market impacting housing starts outlook

The sound of hammers has quieted in Calgary.

Following a record-breaking year for new home construction in the city, the pace has slowed considerably in 2015.

Through the first five months of year, the number of new homes starts in Calgary has numbered 3,954 – a 32.5 per cent drop from the same period in 2014.

The decline was even more dramatic in April, with just 777 homes breaking ground during the month compared to 1,952 during the same time last year – a decline of more than 50 per cent.