Festival City building boom ?
I would say Woodstock's housing construction is (relatively speaking) flourishing currently -- not as many new homes as 2006-07 perhaps, but with five significant subdivisions (Sally Creek/AlderGrange, Havelock Corners, near new hospital, Neighbourhoods of Devonshire, and Builders Group north of Devonshire) on the go, Woodstock is doing quite well with its expansion.
Here's a story from Stratford Beacon-Herald about the number of new developments just down the road from here.
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Is there a market for all these new houses?
Saturday, August 25, 2012
Stratford looks like it’s on the verge of a building boom with more than 500 new dwellings on tap.
Five active registered housing subdivisions in the city currently have an undeveloped potential for 313 dwelling units of which 191 are single-detached homes.
Three draft approved plans account for another 209 potential residential units, 104 of them single-detached homes. And there's another sizable subdivision on the way with a potential of 142 units.
The apparent hyperactivity in planning for new housing begs the question: Is there a need for that much residential development in Stratford when population growth is relatively flat and manufacturing jobs remain tenuous?
John Meinen, president of the Stratford and Area Builders Association, sees the current activity in the building marketplace as a positive sign but he points out it's not at the level it was in the 2004-07 period.
“I wouldn’t say it’s an over-abundance of building. We’re generally in good shape regarding land availability due to annexations,” he said. “The last couple of years have been challenging for builders.”
Meinen, who is president of Pinnacle Homes, spoke to “The Beacon Herald” from a subdivision site located immediately west of the Stratford and District Christian School on Freeland Dr. where he is building 18 executive-type homes.
“I'm hoping for another six to seven starts before Christmas,” he said.
While some local builders have moved out to surrounding areas, a few larger developers from outside Stratford have been showing interest here.
Looking at a map showing the city's active subdivisions, Meinen agreed there is quite a bit of residential land “coming downstream.”
Developers may be seeing potential in the University of Waterloo Stratford Campus and in the city's tourism, he said.
Still, Meinen predicted steady growth rather than robust growth ahead.
Housing starts in Stratford have traditionally been 60 to 100 annually, he noted.
“I believe home values will hold their own. Stratford has always maintained a fairly level economy,” he said.
Meinen expects, however, that, “You're going to have to work a little harder for a sale than you did years ago.”
Dave Carroll, Stratford's chief building official, said this year's construction starts to date are pretty much in line with last year's. Building permits have been issued for 48 units so far this year as compared with 84 for the whole of 2011.
Peter Hyde, president of Hyde Construction Ltd. and one of the city's larger developers, said the city has generally done a good job of ensuring quality housing and that has continued with the range of housing types that are currently being built.
Hyde cited his own subdivision, the Fields, in the city’s northeast corner, the McCann townhouse condos at Galt St. in the west end and the Bromberg homes under construction off O’Loane Ave. as examples. But he agreed with Meinen that the level of housing development isn't what it was 10 years ago.
There haven't been a lot of subdivisions on the go of late, he said. His own project at the Fields started five years ago and construction is wrapping up.
Hyde said what worries him are mixed contractors offering “price competitive units” which may not be up to Stratford standards.
Units built to minimum code and on smaller lots -- “track homes” as some call them -- can depress prices across the city, he explained.
Lower-quality buildings, with lower prices that may be further dropped if sales are slow can have a ripple effect on home assessments. That in turn can force the municipality to raise property taxes.
“The only people that win are the renovators four years from now,” he said.
Although Hyde sees a diversity of housing types and choice as good for both consumers and builders, he is concerned that a new subdivision slated for the city is not going to be “Stratford quality.”
HOUSING STARTS
Human Resources and Skills Development Canada says on its website that housing starts are considered a key gauge of economic conditions.
“Construction of new residential units, such as homes, condominiums, and rental units, makes it easier for Canadians to find housing and improves the quality of housing available in the market.”
The department says that in 2008 in smaller urban centres and rural areas the new housing rate was 52 per 10,000 people. The comparable rate for Stratford with a population of approximately 30,000 would be 156.
That's well above the current rate.
The Canadian Mortgage and Housing Commission predicts an upward trend in housing starts this year.
It cites more employment opportunities, a growing population and a strengthening local economy based on a better U.S. economy and local efforts to attract new businesses.
Employment is already expanding in the transportation and auto-parts sectors as demand rises for locally produced goods for export, it says.
At least some of those conditions could apply to Stratford.
Coun. George Brown, a former real estate brokerage owner, said the current level of interest in residential building suggests developers like what they see in the city.
“Homes seem to be going up and selling on a steady, regular basis,” he said, noting that developers build to the marketplace and they wouldn’t be investing in land if they felt the market wasn't there.
“I think there’s stuff going on in this city that they like to see. The future is looking pretty good. Obviously our industry is not as strong as it was but it’s similar to what it is in London and Kitchener.”
The city’s housing stock, driven as it is by market conditions, is probably where it should be, he agreed.
“They know more about it than me. I certainly wouldn't be buying land if I didn't think it was going to sell.”
Matt Frances, president of the Huron Perth Association of Realtors, said there is “absolutely” demand for new housing though he was hesitant to comment without more information on whether the housing supply or potential supply is where it should be.
“If there's good quality and good pricing, I'm sure there will be demand for it,” he said, anticipating developments on the horizon.
SUBDIVISIONS
Subdivision projects that are active include:
• 50 Galt Rd., where rows of condominium-type town homes are under construction.
• Werner Bromberg Ltd. subdivision on O'Loane Ave. south of Huron St.
• Riverbend (the Fields) off Romeo St. at Vivian Line.
• Little Creek off Romeo St.
• Pinnacle Homes, west of Queensland Rd.
• Northwest Developments, north of Forman Ave.
• EIWO, a 36-unit apartment block in the Greenwood Dr. area.
• Douglas Estate.
In addition, residential developments are anticipated in the not too distant future at:
• 4178 Short St., northeast of Matilda St.
• Part of the former MTO property at Huron and O'Loane.
• Part of the former Fairgrounds which the municipality is the process of selling.
The Short St. subdivision proposed for north of Matilda is the subject of a public meeting scheduled for Sept. 10. The application anticipates 142 dwelling units.
