N.L. needs more homes and recent government initiatives help, says Home Builders' Association
38th annual Home Show is taking place at the Glacier Arena in Mount Pearl this weekend
A string of recent government announcements on housing has Newfoundland and Labrador's chapter of the Canadian Home Builders' Association feeling optimistic about the future.
Earlier this week, Deputy Prime Minister and Finance Minister Chrystia Freeland announced a number of new initiatives on home affordability to help first-time home buyers get their foot in the door.
Beginning Aug. 1, first-time home buyers with insured mortgages on newly built homes will get 30 years to pay that mortgage back. That's an additional five years added to the amortization schedule for mortgage repayments.
Executive officer Alexis Foster said the announcement was welcome news and something her organization had been advocating for on a national level.
"It's a great win for the industry. We're very happy about it," she told CBC News. "It's great to know that they're listening to us.
"There's still lots of room to go on all levels, but we're thankful that there is some movement being made."
The Newfoundland and Labrador government has also made announcements to bolster housing. In October, the province revealed a five-point plan to incentivize the private sector to build more affordable housing
While this is also good news, Foster said, a lot more can be done on a provincial level to get more houses built, including cutting red tape needs so developers can access land.
"If you're adding costs to the development of land, at the end of the day that's going to add to the consumer," she said.
Home show in 28th year
This weekend the association is hosting its annual Home Show at the Glacier Arena in Mount Pearl. It's their biggest event of the year, according to Foster, and it's taking place against the backdrop of the housing crisis.
Foster said the event is attended by all kinds of vendors, including renovators, builders, manufacturers, interior designers and landscapers.
"Everything for the home is under one roof here this weekend," she said.
John Sheppard, the owner of full service electrical contracting company Progressive Electric, said it would be his first time participating in the Home Show.
He said he was looking forward to meeting potential customers face to face.
Sheppard said the impact of the housing crisis is a "huge factor" in his business, causing many people who look at the housing market to decide they'd rather stay in their homes and make upgrades.
Sheppard said he and others in the industry are keeping their eye on government announcements regarding the construction of new homes. He's optimistic about the future.
"Everybody wants to pull in the same direction and get more houses moving," said Sheppard.
Also attending the Home Show was Rob Brydges, director of marketing for Greenfoot Energy Solutions, which installs mini splits, central heating systems and duct work, among other services.
While Greenfoot Energy Solutions works with pre-existing homes, he said they also work with newer builds too.
"The more new houses that are being built, it's good for us and other companies like us," said Brydges.
The demand for the company's services are booming, he added, as people are increasingly interested in making their homes more energy-efficient.
N.L. needs thousands of houses
According to a Parliamentary Budget Officer report released this week, Canada needs to build 1.3 million additional housing units by 2030.
Foster pointed to a recent Canada Mortgage and Housing Corporation report that estimated N.L. needed to build 60,000 new homes by 2030 on top of what the province is already building.
"So that's 10,000 housing starts a year," she said. "Historically our best year was 3,300 homes. So it's a huge gap that we're faced with right now."
In addition to that pressing need, she said, there are challenges with land development and labour shortages.
Foster said the solution to the housing crisis will require all levels of government and industry to come together.
"We need a lot more homes to be built and we need the conditions to be changed in order for our builders to build those homes and in order for consumers to purchase those homes," she said.
The housing shortage is going to need continuous engagement with the industry and levels of government to work together to address the challenges, said Foster, which she said she's optimistic about.
"At the end of the day, everyone wants the same thing. We want everybody to be able to afford a home and be able to build homes and not have the restraints that are keeping us from doing that."
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