Housing affordability is a big topic for major western real estate markets in Canada such as Vancouver and Calgary. This creates an obstacle and an opportunity for many home builders when they look to develop in these areas.
Affordability has been rising as a new defined term, where quality isn’t being compromised. Rather, space saving designs are leading the way for first time home buyers.
Newly built homes priced up to $750,000 will be fully exempt from the property transfer tax when purchased by Canadian citizens or permanent residents in British Columbia. This is another huge step towards progress in affordability.
Calgary is having a market slow down with only 1777 homes sold in 2016, while Vancouver remains on fire with 5173 homes sold in March. Vancouver housing has been historically high due to the pressures in supply and demand.
The population hikes have been a big reason as to why these pressures exist, and Calgary has faced similar circumstances. However, the 20-year trend of declining mortgage rates has made it easier for buyers to carry their mortgage costs.
With increasing demand and restricted supply of single-family properties, the prices have increased between 45-75% over the past few years and multi-family homes have increased between 15-40%.
Constrained geography for places like Vancouver puts a larger strain on the availability to increase housing supply, which forces builders to think outside the box when saving space and creating affordability.
How is Alberta thinking on affordability?
The new president for CHBA Alberta says that his biggest target during his term is to focus on affordability also.
Calgary is a strong market with a future for development in ways that can benefit all types of home buyers, on top of Edmonton’s steady growth and Alberta’s overall vision.
“A home for every Albertan,” is really what sets the tone about future progressions in new home development. New homes are paving the way for opportunity in Alberta.
One specific goal for CHBA is to continue to build positive relationships with our new government.
Every choice is impacting the big picture for Canadians, and new home builders can see that. Innovative solutions are being created to help alleviate unwanted extra costs and help create affordable housing solutions in our communities.