| |
Posted Nov 14, 2015, 5:16 PM
|
|
BANNED
|
|
Join Date: Apr 2008
Location: Lower Mount Royal, Calgary
Posts: 5,147
|
|
Actually I think this is great. I can live with this ratio. The Sun doing their typical anti-MDP, anti-Nenshi etc rant.
http://m.calgarysun.com/2015/11/13/a...i-family-homes
Quote:
HOMES - Real Estate News
Affordability key to rise of multi-family homes
Myke Thomas
Today at 4:00 AM
Calgary’s new homes market has been dominated by multi-family homes, with 14,742 starts in city limits between January 2014 and September 2015. During the same time frame, single-family starts are just 6,740.
It’s a massive reversal in a city that saw 17,187 single-family homes and 16,856 multi-family homes started between January 2010 and December 2013.
Any number of debates could be hosted to explain the rise of multis, with arguments such as shorter commutes, a lock-it-and-leave-it lifestyle, being closer to the action and others.
While these have been a part of the migration to multi-family homes, those that build them talk about the cost of housing in Calgary.
“I believe the significant rise in multi-family homes is directly tied to affordability and in our market we have considerable issues surrounding the cost of housing,” says Charron Ungar, president of Avi Urban. “More buyers entering the marketplace are finding the true cost of restricted development policies ends up being the burden of the end purchaser.”
The restrictive development policies came with the Calgary Municipal Development Plan, which effectively restricted how many single-family homes can be built in new communities.
But, there’s more, Ungar says.
“From rising greenfield levies in suburbs, to expanding redevelopment charges in established communities, the cost of building a home, particularly around land cost and infrastructure, is making it far more difficult for the average Calgarian to buy that new home,” says Ungar.
The gap between an entry level multi-family home and an entry level single-family, depending on finishings, can range from $150,000 to $200,000.
“It really comes down to a question of affordability,” says Adrian Hornett, chartered financial analyst at Truman. “It is far easier for a household to save up a $12,000 down payment, assum- ing 5% down on a purchase price of $240,000 for a two-bedroom condo in one of the suburbs, as opposed to $20,000, assuming 5% down for a $400,000 single-family home in a comparable community. “That difference could equate to one or two years of savings for a typical family with a near median income.”
Generational lifestyle choices, coupled with costs, do play a part, says Gary Siminiuk, marketing manager at Streetside Developments.
“Millennials are staying at home longer and affordability is the main factor for these buyers,” says Siminiuk. “Lifestyle factors such as starting families later in life, socializing in their neighbourhood, having a lock-and-leave preference, shorter commutes, utilizing public transit and being close to work are all important preferences and even though millennials are OK with a smaller space, they don’t want to sacrifice the nicer things that come with home ownership.”
To understand how complete, and ironic, the reversal is, builders broke through the 17,000 annual starts barrier in 2006, starting 10,482 single-family and 6,564 multi-family homes.
That barrier was breached again in 2014, with 6,494 single-family and 10,637 multi-family starts, most of which are condominium-apartments.
Calgary went into the last recession with more than 9,000 apartments under construction and that number has now been exceeded.
Is it too many?
See what the builders have to say in this space next week.
Share on facebook Share on twitter Share on google Share on email More Sharing Services
0
|
|
|
|
Prev
Linear Mode
