CMHC finds big gains in housing quality
Soaring prices for new homes take a breather, Statistics Canada says
Canadian Press
OTTAWA—A review of six decades of housing in Canada has revealed significant improvements in living conditions, Canada Mortgage and Housing Corp. says.
In addition yesterday, the agency’s annual review of the state of Canada’s housing said the sector made a significant contribution to the Canadian economy in 2005.
Strong employment growth, rising incomes and low mortgage rates fuelled sustained housing demand and high levels of new construction, resales, renovation and mortgage-lending activity, the agency said.
Meanwhile, Statistics Canada said its new-housing price index edged up 0.2% in October, the smallest monthly increase since July, 2005. This resulted in a 12-month increase of 11.4% in contractors’ selling prices.
Prices advanced in 11 of 21 metropolitan areas surveyed. Edmonton had the largest monthly increase at 2.2%, followed by Winnipeg (0.6%) and Vancouver (0.5%).
The Toronto/Oshawa area fell 0.1% on the month but was up 3% on the year.
Higher costs for construction materials and labour rates and an active housing market continued to drive prices.
Marking CMHC’s 60th anniversary, the agency’s report included a special feature on housing progress in Canada, tracing how housing needs have evolved over the last six decades and recapping some of the notable achievements recorded along the way.
More than 80% of Canadians live in urban centres, the study said, making Canada one of the most urbanized countries in the world.
The study charted sweeping improvements to housing in Canada.
In 1941, the report said, many homes lacked indoor plumbing, including piped running water (39%), flush toilets (44%) or baths or showers (55%), all “features almost universally present today.”
Over the same period, CMHC said, marked improvements took place in the condition of Canadian homes and in levels of home ownership. Homes in need of major repair declined to 8% from 27%. The proportion of Canadians who own their homes increased to two-thirds from slightly more than half.
Other key findings:
* Home ownership was up 4.5% and renters declined 4.8% between 1990 and 2004.
* Housing construction is strong despite slowing population growth and an aging population.
* Immigration accounts for about two-thirds of population growth in Canada, and nearly 60% of new immigrants interviewed said they plan to buy a home in the next few years.
* The new-home market remained buoyant in 2005, with housing starts registering their second-strongest showing in 18 years. Last year was the fourth straight year in which starts crossed the 200,000-unit threshold.
* Existing-home sales reached a fifth straight high in 2005, with the average sales price up more than 10%.
