Channel surfing on any given night, it’s easy to think home renovation and real estate flipping is an abiding national obsession. Turns out, it is. A new study of residential construction and renovation over the past decade shows a doubling in the value of a Canadian home. Across 16 major markets — from Toronto becoming the continent’s condo capital to Regina’s nation-leading price surge; from Hamilton’s industrial rejuvenation to Vancouver bungalows being flattened by large custom builds — Canadians’ love of their homes is transforming the landscape, with rises highest in Western Canada, according to Housing Evolution, a report by RE/MAX real estate. Adrian Humphreys notes the trends and highlights:
ANDREW BARR / NATIONAL POST SOURCES: TORONTO REAL ESTATE BOARD, CANADIAN REAL ESTATE ASSOCIATION, OKANAGAN MAINLINE REAL ESTATE BOARD, ST.JOHN’S REAL ESTATE BOARD BIG BUSINESS
From 2000 to 2010, the average value of a Canadian home doubled, rising to $339,030 from $163,951. The money involved is huge, with the value of residential building permits issued across Canada in the past decade pegged at $340-billion. But even that huge figure is eclipsed by the cash pushed into home renovations in the same time period — estimated to be $450-billion. The TV shows know a good market when they see it.
PRAIRIE GOLD
Regina topped the list of surging housing prices. The average price of a home rose 173%, climbing to more than $258,000 from $94,518 in 10 years. Much of the increase comes from new construction, with building permit values exceeding $1.6-billion, triple the amount in the preceding decade, according to the report. And it is not abating. The first half of this year saw $172-million in building permit value being issued. The rise has hit renters hard, with the city’s tenants shelling out rents approaching those in much bigger cities. Edmonton saw the second highest price appreciation (165%), followed by Saskatoon (163%) and Winnipeg (158%).
FUTURE HOT SPOT
Winnipeg is seen as having the biggest potential for future growth, as it leads the nation with having the largest stock of older homes. More than half of the city’s owned housing was built before 1970. The report points to increasing building permit values in recent years, the city’s 25-year strategic plan and the rejuvenation from the return of the NHL as boosting future new construction and renovation — and expected rising prices.
RENEWAL
Hamilton is an “ongoing project in renewal,” says the report, making the area an “underestimated up-and-comer.” The total value of residential building permits nearly doubled in the decade, exceeding $6.5 billion. The attraction to Hamilton has been fuelled by plenty of large, solidly built detached homes that are increasingly unattainable in Toronto, less than an hour away. The city has also been pushing the redevelopment of its brownfields for residential and mixed use projects and condos have been enthusiastically embraced, representing 24% of housing sales.
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