According to the ‘headline’ number (4.1%) r...Read more
Construction doesn’t stop when winter weather...Read more
The accompanying table shows 20 of the largest ...Read more
The expectation finally became the reality for total Canadian home starts in October. They dropped to 204,000 units seasonally adjusted and annualized from the previous month’s level of 224,000 units, according to Canada Mortgage and Housing Corporation (CMHC).
Starts in October were at their lowest level since February of this year (also 204,000 units), with the seven months in between averaging 224,000 units.
For the first 10 months of 2012, the monthly average of total Canadian home starts has been 218,200 units, an increase of 12.8% versus the same January to October period of last year.
If home starts stay at 200,000 units in November and December, they will end the year at 215,000 units. The annual figure in 2011 was 194,000 units. 2012 has been a stellar year for Canadian homebuilding.
The multiples-unit market has been the source of most of the action. For centres of 10,000 population and over, multi-unit starts have been +19% year to date. In the single-family segment, there has been little change (+1%).
Multi-unit starts (i.e., mainly condos) are most apparent in the largest cities. Toronto (31,774 units), at nearly one-third of the national total, is the dominant player in this category. Its year-to-date multi-unit starts are +28% versus the same time frame last year.
Montreal (13,694 units) and Vancouver (13,690 units) are virtually tied for second place. The former is -5% year to date while the latter is +15%.
Among the other largest population centres in the country, Calgary’s multi-unit starts of 6,063 units have been +99% year to date; Ottawa-Gatineau’s level of 5,750 units has been +26%; Edmonton’s 5,573 units have been +49%; and Quebec City’s 4,142 units have been+26%.
By the way, Toronto’s multi-unit starts in October were +21% month to month (after a 47% month-to-month drop in September) and -1.8% versus October of last year. The city’s condo-building momentum hasn’t slowed much.
Many of us have been caught up in the recent U.S. election. It’s amazing that approximately $6 billion was spent on campaigning by both parties, the super-PACs and others to achieve a “status quo” result. Barack Obama still resides in the White House, the Republicans control the House and the Democrats are in charge of the Senate.
This doesn’t mean there aren’t important implications for the economy. The philosophical differences between the parties over how to reduce the deficit and lower the nation’s debt burden remain. Some compromise will have to be achieved to avoid two potential catastrophes – (1) the so-called “fiscal cliff” that looms at the end of this year when $600 billion in government stimulus may disappear through automatic spending cuts and tax increases; and (2) a necessary lifting of the debt ceiling above $16.4 trillion early next year if the U.S. doesn’t want to default on its borrowings.
The U.S. economy has been demonstrating a remarkable resiliency lately. It’s important that this not be brought to an abrupt termination. For Canada, it’s still the case that our prospects are highly dependent on how well the U.S. performs. Many jobs and incomes in this country flow from a vibrant American business sector. That means even Canadian housing starts are affected by what happens south of the border.
There are other implications for Canadian new home starts from the U.S. election results. Mitt Romney has expressed his dissatisfaction with the actions of the Federal Reserve since the recession. If he’d been elected President, it was his intention to remove Ben Bernanke as Chairman of the Fed at the end of his term in 2014.
With Mr. Bernanke’s future now more assured, financial markets can count on a continuation of the Fed’s easy money and low interest rate policy. The U.S. housing market is also benefitting from a central bank program to buy $40 billion per month in mortgage-backed securities.
It will be difficult for Mark Carney to institute a tighter monetary policy in Canada with the U.S. remaining so lax. Otherwise, the Canadian dollar will rise in value and impede the export sales of our manufacturers.
Returning to the Canadian new homes scene, there wouldn’t be the overall strength in starts if prices weren’t holding up.
Statistics Canada’s new housing price index (NHPI) increased again in September, by 0.2%. That was a gain similar to what occurred in August. The NHPI has been penciling in a steady upward slope since mid-June, 2009.
Among Canada’s major cities, the largest month-to-month increases in the NHPI were recorded by Toronto (+0.6%), Winnipeg (+0.5%) and a grouping of Saint John, Fredericton and Moncton (also +0.5%).
The largest declines month-to-month were registered on both coasts, with Victoria at -0.4% and St. John’s Newfoundland at -0.2%. Three cities had declines of 0.1% – Halifax, Montreal and Vancouver.
In eight of the 21 urban regions monitored by Statcan, new home prices stayed flat.
The year-over-year change in new home prices in September was +2.4%. The “house only” component was +2.5% and “land only” was +1.8%.
The “Toronto and Oshawa” region (+5.1%) had the largest year-over-year price gain, followed by Quebec City, Winnipeg and Regina (all +3.5%).
Four centres suffered year-over-year price declines in the latest month – Victoria (-3.3%), Vancouver (-0.5%), Charlottetown (-0.4%) and the Saint John, Fredericton and Moncton grouping in New Brunswick (-0.2%).
Statistics Canada sometimes binds several cities together in order to maintain confidentiality. In other words, if some smaller cities were stand-alone, it might be possible to infer the pricing policy of an individual homebuilder.
|11/17/14||Top 10 largest construction project starts in the U.S. - October 2014|
|11/14/14||Non-residential Construction Starts Rose Gently in October|
|07/10/14||The Importance of Matching Volume to Contractor Capacity in JOC Procurement Strategy|
|07/10/14||Consider a Seed Project as Part of Your JOC Procurement Strategy|
|07/10/14||The Best Unit Price Book for Your Job Order Contract|
|07/02/14||ECONOMIC NUGGETS – July 1, 2014|
|10/23/14||Twenty major upcoming Water Treatment Plants and Manufacturing & Warehousing construction projects - U.S. - October 2014|
|10/23/14||Twenty major upcoming Alberta and British Columbia construction projects - Canada - October 2014|
|10/15/14||Trend lines of construction starts in Canada - September 2014|
|10/15/14||Top 10 largest construction project starts in Canada - September 2014|
|09/17/14||Twenty major upcoming midwest and northwest construction projects - U.S. - September 2014|
|09/17/14||Twenty major upcoming medical and educational construction projects - Canada - September 2014|
|09/17/14||Trend lines of construction starts in Canada - August 2014|
|09/17/14||Top 10 largest construction project starts in Canada - August 2014|
|08/15/14||Twenty major upcoming medical and educational construction projects - U.S. - August 2014|
|08/15/14||Twenty major upcoming industrial and water treatment construction projects - Canada - July 2014|
|08/15/14||Trend lines of construction starts in Canada - July 2014|
|08/15/14||Top 10 largest construction project starts in Canada - July 2014|
|07/24/14||Twenty major upcoming entertainment facility and stadium/arena construction projects - U.S. - July 2014|
|07/24/14||Twenty major upcoming Ontario and Quebec construction projects - Canada - July 2014|
|07/24/14||Trend lines of construction starts in Canada - June 2014|
|07/24/14||Top 10 largest construction project starts in Canada - June 2014|
|07/14/14||Top 10 largest construction project starts in the U.S. - June 2014|
|02/03/14||Infographic: Where Can You Use Project Leads in the Construction Process?|
|07/25/13||The Canadian Economy’s Two Great Blessings|
|02/15/13||Construction Economic Notes – February, 2013|
|09/18/12||Return on Your Green Home Improvement Investment|
|08/09/12||Green Building Solutions to Stormwater Runoff|
|08/07/12||An “Aha” Moment Solves Challenge of Cost Estimating Local Circus Roof|
|06/20/12||Ground-Source Heat Pump|
|05/14/12||Universal Design for Outdoor Living|
|04/23/12||What Is Universal Design?|
|03/14/12||Green Material Alternatives for Plumbing Fixtures|
|03/02/12||Budgeting & Financing Green Construction|
|02/22/12||Greening Your Firm|
|02/06/12||Roofs: energy efficiency strategies|
|01/18/12||Commercial Real Estate and Green Construction|
|12/14/11||Renewable Energy & Distributed Generation Technologies|
|10/04/11||Are Online Ads An Endangered Species?|
|09/27/11||Performance Bonds Guarantee Clients Receive Exceptional Service|
|09/15/11||Deconstruction for Green and Economic Benefit|
|09/01/11||4 Ways for Businesses to Create a Good First Impression on Twitter|
|08/11/11||Building Information Modeling (BIM) for Green Building|
|07/21/11||Green Alternatives for Concrete|
|07/12/11||Evaluating Products Over Their Life Cycle|
|06/30/11||Low-Cost Green Strategies|
|06/28/11||Bricks are from Venus, Clicks are from Mars|
|06/17/11||Zombie Avoidance Techniques for Building Product Manufacturers|
|06/08/11||Blogs & Websites: The 5 Signs of Website Wellness|
|06/06/11||Building Product Manufacturers & Green Products|
|06/01/11||Is Fear of Sharing Information Costing Your Company Sales?|
|05/26/11||What Are Green Products?|
|05/20/11||The Building Envelope|
|05/16/11||Blogging: Website Heal Thyself|
|05/03/11||Metals Compared to Wood for Sustainable Construction|
|04/12/11||Storm Water Collection & Infiltration|
|03/23/11||Commissioning the Green Building|
|02/23/11||Building Program for Green Design|
|01/21/11||Building Deconstruction Process|
|05/02/11||Why Building Product Manufacturers and Social Media Are a Marriage Made in Heaven|
|05/06/11||Building Product Manufacturers: How Understanding Architects Can Help Your Business|
|10/21/09||Distributors & Manufacturer Representatives|
|07/15/10||Estimating Doors: Tips from the Experts|
|07/06/10||How to Handle Construction Materials to Prevent Mold|
|06/21/10||How to Maximize the Benefits of Exterior Security Lighting|
|06/01/10||Regional Housing Construction Tracking and Forecast Information|
|05/28/10||How to Find Regional Construction Tracking and Forecast Information|
|05/24/10||Building Product Manufacturers|
|05/18/10||Practicing the Art of Sustainability - Why Atlanta's Current Building Codes Need Updating Now|
|02/23/10||Learning to use EE|
|01/11/10||Earn AIA CEU Credit Attending RCD Webcasts|
|07/17/09||Cost Estimators Winning Work With BIM|
|07/16/09||Becoming an Invited Bidder - More Tips|
|07/16/09||Becoming an Invited Bidder - Tips|
|07/16/09||Becoming an Invited Bidder|
|07/16/09||SmartBIM Object Modeling Guidelines for Revit|
|07/15/09||Interference Check and BIM|
|06/26/09||A Look at Contractor Failure: Part 2|
|06/19/09||Doug Thornton AIA, LEED A.P. of AERC, PLLC|
|06/18/09||A Look at Contractor Failure: Part 1|
|06/12/09||Owners and SmartBIM Objects – What You Need To Do|
|06/10/09||Dealing with the IRS|
|06/05/09||Getting Paid on Construction Contracts|
|06/02/09||BIM Coordination and Collaboration|
|05/28/09||Marketing Your Construction Firm on the Cheap|
|05/20/09||Little Habits with Big Payoffs for Contractors|
|05/07/09||AIA Show Recap as Seen by the SmartBIM Solutions Team|
|04/27/09||Business Case Study - Survey Of Spending Patterns In Educational Facilities|
|04/23/09||Taking Advantage of the Recession: Hiring the Right People|
|04/20/09||Cork as a Green Flooring Option|
|04/08/09||Owners - It's Time to Substantially Increase Your Architect's and Engineer's Fees|
|03/05/09||There's a Solution to Performing Time Consuming Quantity Take-Offs|
|02/20/09||SmartBIM Library is Half-Off for a Limited Time Only|
|02/09/09||You are Wasting Your Money|
|01/20/09||Obama: 'Dramatic Action' On Economy Needed|
|01/14/09||Use of BIM Jumps Dramatically Over Last 12 Months|
|12/10/08||Minimizing the Size of Family Files (Revit Objects)|
|11/11/08||Maximize Online Advertising Dollars|
|11/07/08||Architects and Engineers, WE NEED YOU|
|10/29/08||Why Do You Need SmartBIM Objects|
|10/28/08||Why Building Information Modeling?|
|10/29/08||10 Questions To Ask About BIM Objects|
|10/08/08||The Object Mess|
|10/07/08||Implementing BIM to Your Office|
|10/06/08||Meeting the Needs for Governmental BIM Compliance while Avoiding Current Liability Obstacles|
|09/15/08||The BIM Transformation is Manageable with the NEW SmartBIM Library v3|
|09/14/08||KOLBE Windows and Doors vs. Building Information Modeling|
|09/12/08||The Evolution of Building Information Modeling: BIM 1-2-3|
|08/11/08||BIM 101 Overview - From Hand Drawings, CAD and now BIM|
|08/12/08||Draper, Inc. on BIM Object Developments|
|07/08/08||IFD Library Partners work to establish standards for creators of BIM software|
|06/17/08||Parametric Revit Objects – Part I - Fundamentals|
|06/17/08||Window Glazing Coefficients|
|06/01/08||Frequently Asked Questions About Building Codes|
|06/05/08||Calling All Current and Prospective Revit Users - This Blog Is For You|
|05/06/08||System Requirements for SmartBIM Library|
|05/06/08||SmartBIM Library 2.0 Release Notes|
|05/05/08||Building Information Modeling Moves into AEC Mainstream, Adding Value to Project Delivery Process|
|04/08/08||Flooring: Cost Considerations|
|02/08/10||General Contractors & Trade Contractors|
|01/24/08||Building Element Models (BEM)|
|12/21/07||LEED Certification Primer|
|12/13/07||Building Integrated Photovoltaics (BIPV)|
|09/24/07||Mixed-mode Building Design Combines Old and New Ideas|
|10/15/07||Checklists Identify Potential Envelope Design Improvements|
|10/24/07||Greenroofs as High Performance Design|
|10/21/07||What Makes a Building Product Green|
|10/24/07||Lighting Considerations in Green Building|
|10/24/07||Water Conservation in Green Buildings|
|10/24/07||Rainwater Collection Systems|
|10/24/07||Efficient Cooling Methods for Green Buildings|
|10/24/07||Controlling Heat Transfer in Green Buildings|
|10/24/07||Limiting Heat Loss Through Windows|
|10/23/07||Formaldehyde Use in Building Construction|
|10/23/07||Using Plants to Improve Indoor Air Quality|
|10/19/07||Use of Windows, Skylights and Light Pipes in Daylighting|
|10/19/07||An Overview of Daylighting|
|10/19/07||An Overview of Solar Ventilation Air Heating|
|10/19/07||Types of Collectors for Solar Water Heating|
|10/19/07||An Overview of Solar Water Heating|
|10/19/07||Cooling Load Advoidance|
|10/19/07||Components of Passive Solar Heating Designs|
|10/19/07||An Overview of Passive Solar Heating|
|10/23/07||Improving Indoor Air Quality|
|10/19/07||An Overview of The LEED Rating System|
|10/19/07||Cost Considerations in Building Deconstruction|
|10/25/07||Roofing Considerations in Green Building|
|10/19/07||Green Site Selection and Development|
|10/24/07||Reducing Energy Use in Buildings|
|10/18/07||Integrating Solar Power Generation into Buildings using Thin Film PV|
|09/10/07||Compost Company Promotes Green Environment|
|03/31/06||Green Roof Sets An Example For Minneapolis Sustainable Design|