Manitoba's award-winning home builders in midst of another record-breaking year for new housing starts
By Holli Moncrieff
The strength of the new home market in Winnipeg is surprising everyone this year - even the province's home builders themselves.
"The market really surprised us last year -- we thought that was a record year," says John Daniels, chairman of the board of the Manitoba Home Builders' Association.
"We fully expected it to slow down by at least 10 per cent this year, but permits are up a significant per cent again this year."
Many factors have contributed to the housing boom, Mr. Daniels says.
"The interest rate environment has been very favourable, allowing more people the option of owning a new home. We've also had more people moving to the city this year and good job creation.
"When you create jobs, you get people coming in to the area and more households forming -- it all leads to the need for more homes." A tight resale market is also good news for new home builders. According to Mr. Daniels, Winnipeg has the lowest inventory of resale homes in Canada.
"There is an alarming vacancy in the rental market and very little supply in the used market, and people experience great frustration looking for resale homes," Mr. Daniels says.
"Everyone's heard horror stories about bidding wars for resale homes where prices got out of control. When people have decided to look at the new home market instead, they've been surprised by the value that is available."
While the strong housing market has everyone in the industry smiling, it hasn't been all sunshine this year. The long winter and cold, wet spring caused delays in the start of the building season.
"This posed quite a challenge for our builders, especially since there is a lot of pressure for housing right now," Mr. Daniels says. "One of the more serious problems we are facing is the shortage of land. We really need the city to look at opening up more developments."
The southwest quadrant of the city is particularly in demand for new housing, especially in the Waverley/South Charleswood areas, he adds. "More than 40 per cent of new housing starts occur in the southwest of the city."
The MHBA also faces the constant challenge of recruiting enough skilled labourers to meet the huge demand for new housing.
To that end, the association established a residential construction training institute with some funding from the federal government.
"We're also planning to develop some more specialized courses for framing and basement crews," Mr. Daniels says. "I'd like to see more high school students get exposure to the career opportunities that are available in the residential construction industry.
"It would be great if Red River College and other educational facilities would start providing training in careers for this industry -- it's a very rewarding industry to work in." Mr. Daniels adds that the shortage of manpower could reach a crisis point if it isn't dealt with soon.
"Like many other industries, we have an ageing workforce," he explains. "In five or 10 years, it could be quite serious if it isn't addressed now."
In the meantime, the MHBA is encouraging all prospective new home buyers to take in the Fall Parade of Homes, which will run from Sept. 11 to Oct. 10 this year. More than 70 show homes created by the province's award-winning professional builders will be on display in Winnipeg and nearby communities.
"Everyone dreams of owning a home, and with the current stable market conditions, those dreams can come true," says Wendy Mills, Director of Marketing for the MHBA.
"People can now afford to put all the special extras into their new homes, and build a home that truly lives up to their own standards."
In addition, Mills says that a brand new home created by an MHBA builder member comes with a third-party warranty and a builder's service team that is ready to deal with any concern - all the more reason to check out this fall's Parade of Homes.
Retrieved September 17, 2004 from
http://www.winnipegfreepress.com/special_section/paradeofhomes/articles/story/2201002p-2550639c.html