Construction group sees bright future for Prince Albert

A 50 per cent increase in home prices in the last two years is an indicator of a lack of supply, Yungwirth stated.

The building industry has several challenges when it comes to the current issues.

“That’s one of the biggest things facing the home building industry is the ability to get enough homes on the market to satisfy the demand,” he said.

In markets like Vancouver, Toronto and Montreal, which hold the largest portions of Canadian real estate, municipal regulations are the single biggest challenge.

“What the industry is finding across the country is a lot of unnecessary rules, regulations and red tape that a lot of municipalities have. That slows down the development of housing,” Yungwirth said.

In Toronto, one developer sat on a lot for 17 years before being allowed to start construction. In Vancouver, where new homes sell for over $1 million, at least $200,000 is needed to pay for permits, fees and other red tape.

The red tape is not as much of an issue in Prince Albert, he said.

The city still has a shortage of mid-range and affordable housing, however and development permits have dropped in recent years.

“We haven’t seen a whole lot of new housing in Prince Albert and that has simply been a function of a lack of demand,” Yungwirth stated.

However, as the supply of starter or family homes in the $200,000 to $350,000 range drops and prices increase, the market will adapt.

“That supply is tightening up, so I think that is going to put more opportunity in the market for new housing again,” said Yungwirth.

Building costs have increased and the style of housing is changing to keep prices low enough to meet the mid-range demand.

Instead of traditional single family homes, builders are focusing more on multi-family units or condominium style construction to keep prices affordable.

For all three levels of government, there needs be acknowledgment of the housing continuum, Yungwirth said.

“Housing is a lot of things. It’s important that governments keep that in mind and that they’re providing availability of land and of resources and planning in order to accommodate all types of housing,” he said.

The recent federal government budget announcement include multiple measures for affordable housing, including various ways for young people to save up the money needed for first purchases.

Yungwirth believes that the trend will continue towards smaller homes that allow for movement across the continuum.

“I think you’re going to see more people developing housing in that range that’s new and allows more families to move around,” he said.

In Saskatchewan and Prince Albert, many of the announced projects, such as several mills near the city, mean a boost in commercial and industrial building.

“Saskatchewan is poised for a lot of growth and the construction industry is happy to facilitate that growth,” Yungwirth said. “This region in particular is looking really good for the next number of years, so we’re happy about that.”

“I think we’re pretty excited about the future for our region.”

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susan.mcneil@pattisonmedia.com

On Twitter: @princealbertnow

by Susan McNeil

Construction group sees bright future for Prince Albert

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