No 'Break' for Home Builders
The ObserverJuly 19, 2006
Area home builders who are used to a lull during the hot months are finding their "summer break" has vanished this year.
"Things are busy, that's for sure," said Frank Durco Jr., owner of Brooktree Homes and past-president of the Sarnia-Lambton homebuilders Association.
He is working on 10 to 12 homes right now, he said.
"This year is a lot different than other years. Usually, things slow down in June. This year they picked up."
Statistics released last week by the Canada Mortgage and Housing Corporation show Durco isn't alone.
There were 31 housing starts for single detached homes last month, more than two-and-a-half times the number from a year ago.
That accounted for much of the overall increase from 2005 to this year. To date, construction has begun on 95 new homes, compared to 70 at this time last year.
Sarnia 's home construction boom began in 1997 when the number of single detached homes went from 89 to 162. Since that time it has averaged 180, with this year's pace set to exceed that number.
"It's phenomenal, isn't it," said Matt McEachran, president of the local home builders association.
"Most of our member will tell you that they thought demand would start to taper off by now," he said. "We keep hearing the bubble is going to burst and things are going to slow down. The market does seem to be cooling off across Ontario and most of Canada but Sarnia 's economy is still strong and it's not slowing down here.
"It's nice to know bucking the trend in the right direction, for once."
Durco said the market for new homes is diverse with young people building heir own homes and retirees looking to upgrade.
He said the construction business is doing well "across the board in Sarnia with expansions and upgrades in the (Chemical) Valley generating business" as well.
McEachran and Durco are concerned that the provincial government's new building code, which includes tougher energy-efficiency standards, will hamper the market.
Changes in insulation levels are the most significant and costly alterations, they said.
"We're all for energy efficiency, as long as the cost is not unreasonable," said Durco.
"Everybody likes energy efficiency - in fact, some of our members have been asking for changes (in insulation levels)," said McEachran.
But, he added, these changes will add thousands of dollars to the cost of the average home in Ontario (up to $6,600, by 2012), according to the Ministry of Municipal Affairs and Housing website).
McEachran added the "one size fits all approach isn't necessarily appropriate in this case.
"The provincial government has a tendency to paint the whole province with whatever brush is good for Toronto ," said McEachran. :A small house in the middle of a suburb doesn't necessarily need the energy efficiency of a lakefront home."
"Things are busy, that's for sure," said Frank Durco Jr., owner of Brooktree Homes and past-president of the Sarnia-Lambton homebuilders Association.
He is working on 10 to 12 homes right now, he said.
"This year is a lot different than other years. Usually, things slow down in June. This year they picked up."
Statistics released last week by the Canada Mortgage and Housing Corporation show Durco isn't alone.
There were 31 housing starts for single detached homes last month, more than two-and-a-half times the number from a year ago.
That accounted for much of the overall increase from 2005 to this year. To date, construction has begun on 95 new homes, compared to 70 at this time last year.
Sarnia 's home construction boom began in 1997 when the number of single detached homes went from 89 to 162. Since that time it has averaged 180, with this year's pace set to exceed that number.
"It's phenomenal, isn't it," said Matt McEachran, president of the local home builders association.
"Most of our member will tell you that they thought demand would start to taper off by now," he said. "We keep hearing the bubble is going to burst and things are going to slow down. The market does seem to be cooling off across Ontario and most of Canada but Sarnia 's economy is still strong and it's not slowing down here.
"It's nice to know bucking the trend in the right direction, for once."
Durco said the market for new homes is diverse with young people building heir own homes and retirees looking to upgrade.
He said the construction business is doing well "across the board in Sarnia with expansions and upgrades in the (Chemical) Valley generating business" as well.
McEachran and Durco are concerned that the provincial government's new building code, which includes tougher energy-efficiency standards, will hamper the market.
Changes in insulation levels are the most significant and costly alterations, they said.
"We're all for energy efficiency, as long as the cost is not unreasonable," said Durco.
"Everybody likes energy efficiency - in fact, some of our members have been asking for changes (in insulation levels)," said McEachran.
But, he added, these changes will add thousands of dollars to the cost of the average home in Ontario (up to $6,600, by 2012), according to the Ministry of Municipal Affairs and Housing website).
McEachran added the "one size fits all approach isn't necessarily appropriate in this case.
"The provincial government has a tendency to paint the whole province with whatever brush is good for Toronto ," said McEachran. :A small house in the middle of a suburb doesn't necessarily need the energy efficiency of a lakefront home."