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VOL.30 NO. 4
O
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E
Winter 2017
WINTER WOOD NOTCHES NEW HIGHS Person of the year: Canada’s home builder Market Profile: Atlantic Canada Renovators speak Making her mark in Calgary renovations Latest new trends Amazing technology
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CONTENTS
Columns
Publisher’s Note
9 Economics 10 Customer Satisfaction 11 Common Cents Construction 26 Tool Talk
Welcome to 2018 and the 31st year of publishing for Home BUILDER Magazine, the longest published residential construction
Departments 6 News 8 Association 28 Renovation 30 Calendar 30 Industry News 31 Advertisers Index
magazine in Canada. Today, as for more than three
Cover Developer PortLiving is building Canada’s tallest wood condo tower in Vancouver. Page 16 Photo courtesy of PortLiving.
decades, our main objective is to Nachmi Artzy Publisher
present our loyal readers with the kind of information that they can
use right now to better their business, sharpen their skills, gain an edge in a competitive market and increase their profits. We are not here to show you large images of advertiser’s
12
RENOVATOR PROFILE Shannon Lenstra of Kon-Strux Developments is making her mark in Calgary.
18
products or tell you things you already know. Our job in every issue is to deliver useful, timely and well-researched information; expert opinions; and hands-on advice from builders and renovators like you. Our regular Tool Talk and Common Cents features, for example, are a must read for any contractor or builder. Your time is valuable and we won’t waste it. When you read Home BUILDER Magazine you learn something that will help you work smarter and better. Maybe a new trend influencing your business. A technical solution to a problem you have, a
PERSON OF THE YEAR
marketing idea, a key piece advice from peers, or a new product
Canada’s home builder bucked headwinds to deliver 200,000 homes and thousands of jobs in 2017.
that you can use right now.
20
RENOVATORS SPEAK Six contractors share their view from the front line of the renovation industry.
14
MARKET REPORT: Atlantic Canada
of interest. Or perhaps an advertisement for a product or service Home BUILDER remains focused on the real residential construction heroes from coast to coast: the builders and renovators, men and women, who need focused information that benefits their livelihood. We are here to listen to you and voice your opinions and concerns. Home BUIDER is not only a print product any longer, either. We now also connect with readers with our online Newsletter
Some had suggested a downturn in home building. Looks like they were wrong.
and lively, updated social media platforms.
22
to remain robust. Forecasts are for more than 200,000 housing
TOP TRENDS Nesting windows, fast solar and invisible TVs among features for your next renovation contract.
24
TECHNOLOGY
Looking forward, we expect Canada’s residential industry starts and renovation spending in excess of $74 billion in 2018, representing among the largest economic engines and job generators in Canada. It is the men and women on the front line of this industry that will, and remain, Home BUILDER’s audience. We wish all of you a profitable year and we hope that Home BUILDER helps you achieve it.
From virtual reality to switch-on wearables, high-tech is making contractors smarter and safer. Home BUILDER Magazine is published by Work-4 Projects Ltd. four times a year. Editorial/Advertising: 4819 St. Charles Boulevard, Pierrefonds, Quebec, Canada, H9H 3C7. Tel.: 514-620-2200, E-mail: homebuilder@work4.ca. Entire contents copyright December 2017 by Work-4 Projects Ltd. Reprints only by written permission. Opinions expressed are those of the authors or persons quoted and not necessarily those of the publisher or any other organization. The occasional appearance of photographs depicting safety violation does not represent an endorsement of the practice by the publisher or any other organization. Subscription rates in Canada: $36* a year, $60* for two years, $80* for three years. U.S. and foreign subscriptions payable in U.S. funds only. ISSN No. 0840-4348. Legal deposit — The National Library of Canada and Bibliothèque et Archives Nationales du Québec, 2007. Canada Post Permit #0295647. *Plus applicable taxes. GST/HST registration #R105741383 • Date of mailing: December 2017
Nachmi Artzy Publisher 514-620-2200 | pub@work4.ca
Home BUILDER
Winter 2017
5
NEWS
Boomers Plan Home Equity Transfer areas plan to, or have already given, a living inheritance with the specific goal of helping relatives to buy residential real estate. A similar proportion plan on giving such a gift as part of their will. Of living inheritance givers, 12 per cent have already transferred funds to beneficiaries. Almost half plan to do so within the next five years. Calgary boomers are the most likely to have already transferred, or to have plans to transfer funds to help a relative buy a home, at 41 per cent; 36 per cent of Vancouver boomers, 35 per cent of those in Toronto and 27 per cent of those in Montreal intend to help family members purchase residential real estate. The median of a living inheritance transfer for real estate purchases is in the $25,000 to $49,999 range. Most recipients plan to buy a More than a third of Canada’s baby boomer homeowners plan to
first home.
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transfer home equity proceeds to help relatives buy a home, according to unique study by the Mustel Group with Sotheby’s International Realty Canada.
Mortgage Change May Stress Market
The 2017 Generational Trends Report: Canada’s Intergenerational
The January 1 changes to Canada’s mortgage industry could remove
Wealth Transfer & Next Generation Home Buyers is the first report to
up to 50,000 homebuyers from the market this year, according to Mort-
analyze the transfer of “living inheritances”—gifts of funds while still
gage Professionals Canada (MPC). In a report prepared by its chief economist Will Dunning, the MPC
living—to family members to buy a home. According to Jami Koehl, Principal of Mustel Group, “Baby boomers
estimates that 18 per cent of buyers will fail the new mortgage stress
make up close to 30 per cent of Canada’s population and have had a
test. This test requires that all homebuyers qualify for a mortgage rate
significant impact on the housing market. This influential cohort is spe-
at least 2 per cent higher than what is available in the market. The rul-
cifically making a mark on a new generation of homebuyers.”
ing applies to federally regulated lending institutions, which includes all
Highlights of the study include:
the major banks.
One-third of baby boomers across Canada’s four major metropolitan
Immigrants Require Different Homes Immigrants to Canada often have different housing needs than other Canadians, according to Jayman Built of Calgary, which has been helping immigrants buy new homes for two decades. Nishi Saraswat, a sales manager for Jayman Built, said most immigrants require bigger and a more specifically designed home. She said many immigrant families have parents living with them, and would like a main-floor bedroom for them.
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Vol. 30 No. 4 Winter 2017
The MCP said that about 91 per cent of new mortgage applicants will be subject to the stress test, since it covers both high-risk and low-risk loans. High-risk loans are those with a down payment of less than 20
Publisher Nachmi Artzy pub@work4.ca Contributors: Frank O’Brien Jon Eakes Peter Norman Tim Bailey Bo Mocherniak Dermot Mack
Production Manager Kelvin Chan production@ homebuildercanada.com Sales Coordinator Polly Ma coordinator@work4.ca Accounting Patricia Fleurent accounting@work4.ca Circulation Manager mail@work4.ca
Editor Nachmi Artzy editor@work4.ca
per cent that require mortgage insurance.
Published by Work-4 Projects Ltd.
per cent (or about $31,000) to pass the stress test. Dunning estimated.
Advertising/Editorial: 4819 St. Charles Blvd. Pierrefonds, Quebec Canada, H9H 3C7 Phone: 514-620-2200 www.homebuildercanada.com
The typical homebuyer will have to reduce their target price by 6.8 About 100,000 potential homebuyers are expected to fail the stress test, but half of these will acquire financing through alternative lenders, such as credit unions or private lenders. From 40,000 to 50,000 potential homebuyers will be unable to pass the stress test or acquire non-conventional funding and will exit the home sales market, MCP estimated.
6
Home BUILDER Winter 2017
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TECHNOLOGY®
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association
Ontario Builders Question New Zoning Plan The Ontario government has
doesn’t add to the cost of market units, he noted.
announced details of their inclu-
“The proposed provincial framework is a partnership model, but we
sionary zoning framework that
are disappointed that the framework falls short of an equal 50/50 sharing
would give municipalities the power
of the costs to build these government-mandated units,” Vaccaro said. C
to require inclusion of governmentmandated affordable housing units in new home developments. “Creating more government-
“We are disappointed.” Joe Vaccaro, OHBA
Saint John Endorses Mid-Level Wood Buildings
mandated affordable housing units
Saint John is the first city in Atlan-
should not come at the expense of
tic Canada to allow five- to six-
housing affordability. The Ontario
storey wood buildings to be con-
Home Builders’ Association (OHBA)
structed, reports the Canadian Wood
has been supportive of a partner-
Council (CWC).
ship model where the costs of delivering mandated units are shared via
“Mid-rise code changes are the
a partnership between government and the industry,” said OHBA CEO
result of a lengthy, carefully con-
Joe Vaccaro. “The proposed framework announced by the province
sidered code process that included
recognizes that in order for our industry to come to the table and build
participation from expert stake-
affordable units, there has to be a package of offsets and incentives, such
holders and consultants,” explained
as waiving or reducing development charges, parking requirements or
Michael Giroux, CWC president.
cash-in-lieu of parkland fees for inclusionary zoning to be successful.”
“The CWC applauds the City of Saint John’s mid-rise decision, which
Successful inclusionary programs in other North American cities provide planning and financial support to ensure affordable housing
will create access to safe, strong and sophisticated building solutions.” To date, 80 wood mid-rise projects have been completed, and another 75 are under construction in Canada, mostly in B.C. and Ontario. Six-storey wood buildings provide a lower cost construction option, while promoting sustainable construction and local labour in New Brunswick, added Patrick Crabbe, project coordinator for Atlantic
HomeBuilderCanada.com
Wood Works.
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Wilkes Named BILD GTA President D avid
W ilkes
has
been
appointed president and CEO of the 1,450-member ‘Building Industry and Land Development
Home BUILDER Magazine e-Newsletter
Association (BILD) of Greater Toronto after what BILD calls “an
You’ve been asking for an industry-specific newsletter
extensive search.”
geared to residential home builders and renovators—and
Wilkes was the former senior
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vice-president of government David Wilkes
relations at the Retail Council of Canada.
“This is an exciting time for BILD and I am delighted to be taking on
to anyone else). Visit:
the role of president and CEO,” said Wilkes. “I’m ready for the challenge
www.HomeBuilderCanada.com/sub-newsletter.htm or
of leading an industry that employs over 197,000 people and brings $30
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billion in investment value to the Greater Toronto Area.”
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An industry-specific e-newsletter delivers timely information about the residential housing market, including: C Latest news C New products and services C Meaningful information
CHBA Readies National Conference The Canadian Home Builders’ Association is getting ready for its 75th National Conference, which will be held March 21 - 23, 2018, at the Fairmont Empress Hotel in Victoria, B.C. Pre-conference meetings of the CHBA will be conducted March 19 - 21. Registration is now open for the Conference. For information, visit chba.ca.
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Home BUILDER Winter 2017
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economics
Twenty-Seventeen Was a Great Year for Housing, Expect the Same in 2018
By Peter Norman
2017 was a very remarkable year for new housing
Enough of them across the market means we expect
construction right across Canada (as predicted in this col-
somewhat flatter prices through a period of mild interest
umn one year ago!). In addition to the strongest housing
rate hikes rather than the sort of frothy pattern seen in
starts performance in a decade, there was also remark-
recent quarters.
able regional convergence, with every region showing
Supply constraints continue to be among the key risks
gains (in fact every province except one, Newfoundland
to the housing market. Supply problems, particularly
and Labrador, advanced in 2017). Some 219,000 units
among single-family development land, played a signifi-
were started in 2017, up 11 per cent from 2016 and some
cant role in the turbulence in certain urban markets in
24,000 units higher than the annual average over the
the past two years and still threatens to pose problems
past ten years.
in 2018. Many urban markets across the country have
The good news is that that many of the factors fueling
faced a certain shortage of approved development land,
this growth will continue to provide a boost to housing
as planning policies coast to coast attempt to densify
demand in 2018. But this year will not be without its
through restrictive policies.
challenges.
Residential renovation activity will also be fueled by many of the same factors such as employment and income growth.
The most acute examples have been Vancouver and
2017 turned out to be a remarkably strong year for
Toronto over the past two years that each had price peak
job gains right the way across the country. Over 422,000
events and periods of turbulence related to supply short-
net new jobs were created within the year—a 15 year
ages. But other markets such as Calgary and Regina also
record. The largest gains were found in Quebec, B.C. and
continue to have underlying problems with adequate
Ontario. Alberta also saw significant job gains as part of
single-family approvals, albeit somewhat masked by the
an important bounce back after a recession that lasted
recent recessions in those markets. In general, 2018 is
for two years.
expected to be a strong year for housing demand based
Job growth, of course, is critical for housing demand
on income, employment and migration growth—expect
as a new job boosts a household’s income and its con-
to see more frothy conditions emerge in our most supply-
sumer confidence to undertake larger investments, such
constrained urban markets.
as home buying, upgrades or renovations. Typically, there are lags between a pick-up in job growth and a notice-
On net we expect housing starts nationally to stay relatively buoyant at about 210,000 units.
able boost to housing demand—sometimes thought to
Residential renovation activity will also be fueled
be about two years. Thus, notwithstanding the strong
by many of the same factors such as employment and
housing starts in 2017, the job gains last year are likely
income growth. Expect about 4 per cent growth in reno-
setting the stage for stronger housing demand over the
vation expenditure in 2018, with continued focus on
next few years — particularly in markets like Quebec and
energy efficiency projects but with emerging trends
Alberta where the gains were so sharp.
toward home automation and multi-generational adap-
2017 was the year that mortgage interest rates began
tations.
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to retrace some of their long-term trend declines. Many in the industry are concerned that this will pose some sort of risk rates will have on the 2018 market is likely
Important to Keep Interest Rate Changes in Perspective
to be pretty muted. First, while the effective
Recent Rises Are a Small Share of the Large Declines in the Past Decade
on the horizon, but the impact that interest
five-year mortgage rate rose about 45 basis points through 2017 and may see some further modest rise in 2018, these changes are still pretty minor in comparison with Peter Norman is VP & Chief Economist at Altus Group, and leads a national team of economic advisors providing policy analysis, feasibility assessment, and economic intelligence to the home building and real estate industry. He can be reached at peter.norman@ altusgroup.com.
the almost 300-basis-point decline over the past decade. In addition, interest rates have more of an impact on housing price than the volume of sales transactions. This is to say that households on the margin of affordability that are ready and willing to buy, will seek lower-priced product rather than withdraw from the market completely. Sources: Altus Group Economic Consulting based on major banks
Home BUILDER
Winter 2017
9
Customer satisfaction
Optimize 3Ps to Create Outstanding CX
By Tim Bailey
There are proven business initiatives that generate
understanding the needs of homebuyers in a target-
profound results and home builders may employ one
market allows product to be brought to market that meets
or more of these initiatives, such as Lean, Six Sigma, or
those needs and provides those solutions.
Kaizen, to stay the course towards sustained excellence.
Product design must consider demographic, ethno-
Lean initiatives help reduce waste and inefficiencies. Six
graphic, psychographic and economic information for
Sigma practices reduce defects and deficiencies. Kaizen
a target market. Home building is a high-stakes indus-
maintains a focus on continual improvement. The core
try and including features or specifications that are
building blocks of all business improvement initiatives
not valued by a target market adds unnecessary costs.
are People, Product, and Process. Understanding the
Designing a product that “checks all the boxes” for the
interactions of these 3Ps is essential to
target market will maximize value for
CX—the customer experience.
customers, increase sales velocity, and improve margins.
People
Process
A key ingredient in a suc-
Auditing the current process in home building means digging deep into every area of the company.
cessful organization is the
A well-intentioned team
people. The knowledge, atti-
and market-matched prod-
tude, aptitude, and genuine
uct will not be able to succeed
caring of a collective group of
without a sound process. “A
people in an organization has a
ity expert W. Edwards Deming. A good
people only solves part of the equation,
process is repeatable, scalable, efficient,
as those people must also be aligned to
and constantly improving. Auditing the
the right roles. A highly skilled construction manager who consistently exceeds time, quality, and budget objectives, but falls short with custom-
current process in home building means digging deep into every area of the company. It is a significant undertaking but reaps great rewards.
er-facing interactions, should be provided with thorough
Process analysis unearths existing process bottlenecks,
training to help excel at customer interactions, or be buff-
non-value-added stages, inefficiencies, and waste. Lay-
ered from those situations in order to leverage what he or
ering the customer journey over that process exposes
she does best for the company. Hammering a square peg
potential “friction points” and allows the process to be
into a round hole does not create solutions, only friction.
engineered to enhance the customer experience.
Recognizing key strengths of individuals and aligning
The effects of process deficiencies are often easy
these strengths with respective roles and responsibilities
to spot, but getting to root causes is what facilitates
will maximize success for the organization.
improvement. A root cause exercise called “5 Whys” is a
Comprehensive and ongoing training of people will
common practice in Lean, Six Sigma and Kaizen method-
always generate a significant return on investment. Skills
ologies. It involves digging deep into a negative effect by
and knowledge gained by people in an organization bet-
asking a series of “why” questions five times. The answer
ter equip those people to be trusted and empowered. An
from each “why” forms the next question and the fifth
organization is only able to scale successfully if people
“why” generally exposes a root cause.
within their area of responsibility. It is important to
Using 3Ps for CX
remember that trades and suppliers form a substantial
The customer experience is at the core of the interac-
percentage—and integral part—of the “people” for a
tions of people, product and process. To “manage with
home builder and must also be considered as part of that
metrics” to optimize the 3Ps, leading companies rely on:
detail in the 3Ps blueprint.
10 Home BUILDER Winter 2017
son every time,” according to qual-
of the organization. Having the right
are afforded the trust and authority to make decisions
Tim Bailey is Division President of Avid Ratings Canada, a leading provider of customer loyalty research and consulting to the home building industry. Through the Avid system, industry-leading clients improve referrals, reduce warranty costs, and strengthen their brand. He can be reached at tim.bailey@ avidratings.ca.
bad system will beat a good per-
tremendous impact on the success
Product The best people and processes cannot be successful if
Employee feedback Trade feedback Customer feedback Production statistics
the product misses the mark. In home building, “product”
Deficiency/warranty data
includes factors such as design, specifications, loca-
Market research
tion, and price. Achieving a successful “product-market”
Financial results
fit is the goal, and fortunately there is a vast amount
Business excellence designed around the 3Ps will
of data that can be leveraged to ensure that product-
result in teams that are engaged, organized and advan-
market fit is not left to chance. Home builders are not
taged, and a customer experience that creates loyal
building structures, but providing “solutions.” Intimately
promoters.
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COMMON CENTS CONSTRUCTION
How to Build a Human Firewall from the Ground Up
By Patti Walsh
As the residential construction industry continues to
their own right—in essence, a human firewall. Just as
realize—and leverage—the benefits of digital technology,
insulation inside a home’s walls is needed to keep cold
the conversation surrounding such technologies is shift-
air out, a human firewall is essential to keep malicious
ing. Suddenly, builders, developers and contractors are
hackers at bay. A sound cyber awareness program con-
no longer asking whether it makes sense to invest in the
sists of three integral components: education, testing
cloud, mobile devices or the latest building information
and governance.
modelling software. Rather, they’re looking for ways to
The first component, education, refers to cyber aware-
remain technologically relevant while simultaneously
ness training offered during the onboarding process and
keeping their businesses safe.
to existing employees. Because cyber threats are con-
This is no easy task. As the cyber landscape rapidly
stantly changing, employee training should be an ongo-
evolves from one day to the next, it’s clear that a standard
ing process, not a one-time event. Think of it as a plan
anti-virus program isn’t going to cut it. But with limited
toward building a human firewall. When you’re building
resources at hand—particularly in the areas of IT staff and
a house, you don’t look at a set of blueprints once—you
budgets—building and managing a robust cybersecurity
review them regularly, making sure everything is built to
program seems unattainable particularly for smaller resi-
spec as you go along. Cyber awareness training should
dential construction businesses.
be approached in a similar manner.
Fortunately, there are countless things you can do to
Just as cyber awareness training should be ongoing,
defend your business on a small cyber budget—the most
so should your organization’s efforts to test employee
effective being building a cyber-aware workforce.
and contractor cyber knowledge. To ensure your training
A Threatening Place First steps: Building a human firewall While building a human firewall may seem like a huge task, there are three simple things your company can do right now to set you well on your way. uu Strengthen your passwords. Put rules in place to make sure passwords are strong and changed regularly. uu Limit data access. Make sure only those that “need to know” have access to sensitive data. uu Put cybersecurity processes in place. Whether someone loses a mobile device or receives a suspicious email, they should know who to call—and what the process entails.
Patti Walsh is a partner with Grant Thornton LLP in Edmonton. She works with organizations of all sizes in the construction and real estate sector. Patti can be reached at Patti.Walsh@ca.gt.com or by phone at 780-401-8246.
program is effective, it’s important to define the metrics you want to track and measure ahead of time—and peri-
While IT security systems offer a valu-
odically test your people’s awareness in various ways to
able layer of cyber protection, the truth is
make sure those metrics are improving. To get the most
half of all cyber breaches start by targeting
out of the tests, try to make them real for your employ-
organizations’ email systems and browsers.
ees—for example, go undercover and create mock emails
If that number seems high, keep in mind
from the site superintendent asking them to click on
that today’s hackers are significantly more
a link.
advanced than those of the past—and, as
The third element of a
such, cyber attacks are much more difficult
human firewall is strong
for an untrained eye to identify.
governance. Through auto-
To give you an example of what a cyber
mated reporting and ana-
breach may look like, imagine your company
lytics, you should be able
possesses valuable information that com-
to track your cyber aware-
petitors would love to get their hands on.
ness progress over time and
A savvy hacker, recognizing this, sets out
determine the effectiveness
to steal it with the intent of selling it to your
of your awareness training.
competitors. To do this, he first needs to find employees with access to the company’s data
Ahead of the Game
and systems—so he scours social networks
Given the interconnected
until he finds one, making note of any col-
nature of the construction
leagues on the individual’s friends list.
industry, and the growing
A strong cyberawareness training program should uu Introduce best practice policies to build awareness; uu Be interesting, personal and real; uu Be part of everyday behaviour; uu Make it easy for people to report suspicious emails, a potential cyber attack or other concerning behaviour; and uu Clearly outline your company’s cybersecurity processes.
Next, the hacker creates a fake but recognizable
prevalence of cyber threats,
email address—maybe ending in .ca instead of .com—to
a human firewall isn’t just
impersonate the targeted invidual’s colleagues or boss,
nice to have—it will likely be
and sends a personalized email with a link. Once the
a mandatory cybersecurity
link or attachment is clicked, the hacker is able to install
measure for any business hoping to land major con-
malware—either into the company computer system,
struction projects in the future. With that in mind, early
the individual’s computer or a mobile device—giving
adopters that invest in cyber awareness programs now—
the hacker backdoor entry into the company’s systems,
and demand the same from their suppliers and contrac-
where he can easily steal the desired information.
tors—will inevitably be ahead of the curve when that time
Elements of a Human Firewall The key to preventing breaches like these lies in increasing the awareness of employees and end users
comes. Those that don’t, however, may find themselves falling behind and potentially exposing themselves to a higher risk of a cyber attack—and the financial and reputational loss that often comes along with it.
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to such a level that they become a line of defence in
Home BUILDER
Winter 2017
11
Renovator profile
g n i k a M k r a M r e H By Frank O’Brien
Shannon Lenstra, president of multiple award-winning Kon-Strux Developments, is a renovation and innovation leader in Calgary
This kitchen makeover resulted in a 2017 national SAM award for best kitchen renovation under $200,000.
Fighting “tailgaters”
In ten years Shannon Lenstra of Calgary
The 2014 downturn—when oil prices cra-
“started from scratch” to build Kon-Strux
tered—tested the mettle of company owners
Ironically, the motorbike-riding mother of
Developments Inc. into one of the top reno-
throughout Alberta. Kon-Strux was no excep-
two credits her encounter with a bad contrac-
vation firms in the city.
tion. Backed by a sterling reputation for straight
tor for helping her start Kon-Strux, and, per-
Kon-Strux has won a wall of awards,
dealing, a willingness to take on a multitude of
haps, for its subsequent success.
including national renovation honours this
projects—including custom-home building—
In what she calls her “past life” as an interior
year from the Canadian Home Builders’ Asso-
and diversification into a unique new field,
designer, Lenstra worked with a number of
ciation (CHBA) for Canada’s best kitchen reno-
have kept all but one of Lenstra’s full-time staff
contractors as a project manager.
vation under $200,000, and for a whole house
of 14 working.
renovation.
“One particular fellow showed me what not
She also kept most of her 75 separate sub-
to do,” she said. “I did not want to be that type
But, like any successful Calgary entrepre-
contractors busy. Kon-Strux relies on “a core
of person. I wanted to be ethical, to be above
neur these days, Lenstra and her team have
group” of contractors and designers that reflect
board. To be proud of my work.”
no time or inclination to rest on their laurels.
the work ethic and the standards of her com-
Being a woman in a male-dominated indus-
pany, she said.
That was the underlying theme as she realized that being a renovation contractor would
try means you often have to work harder and
When asked about leading trends in the
also give her the freedom and flexibility to
smarter to prove yourself, Lenstra said, but
renovation industry, Lenstra suggested that
work from home, to raise a family, and to offer
she also insists that gender should be neither
the trends are “whatever the client wants,”
a career with some variety.
a barrier nor an advantage.
though she notes these wants often mirror the
On March 1, 2007 she started Kon-Strux.
“I hire the best person for job. Just as I would
contemporary styles seen on TV renovation
Perhaps it was that brush with an unethi-
not like to be judged by my gender, I don’t judge
shows and in home design magazines. “White
cal, fly-by-night contractor that deepened
others by their gender.”
is big this year,” she said.
Lenstra’s resolve to battle the underground 415
12 Home BUILDER Winter 2017
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taigabuilding.com
Market report
Outlook Mixed for Atlantic Housing Starts into 2018
W W
Starts expected to hold steady despite headwinds from tough new mortgage rules
By Dermot Mack
Three-bedroom waterfront home in Homestead Estates Drive, Italy Cross, Nova Scotia is listed for $490,000—less than the average price of a small condominium in Vancouver or Toronto.
hile the Canada Mortgage and Housing Corp. (CMHC) outlook is for slightly higher housing starts and prices next
year, RBC Economics Research (RBC) is calling for a “soft landing” in most of Atlantic Canada. Any forecast for a slowdown in new home
construction must be measured against the historically high levels this year, particularly in New Brunswick and Prince Edward Island, RBC noted. The Atlantic provinces have a slower but steadier pace of new home building than most
Re/Max South Shore Realty, Nova Scotia
growth, but resale house prices may fall hard
Atlantic Canada Total housing starts outlook 2018 (High range projection)
in Newfoundland. Citing the low oil prices that have provoked a “deep market slump,” RBC senior economist
City
2017
2018
Halifax
2,949
3,285
St. John’s
715
725
Charlottetown
545
705
Moncton
710
670
Fredericton
415
420
Saint John
240
295
Source: Canada Mortgage and Housing Corp. Housing Market Outlook Q3 2017
of the country.
Robert Hogue sees Newfoundland home prices dropping 2.6 per cent in 2018, compared to 2017. For many homebuyers and renters unfortunate enough to live west of New Brunswick, however, the Atlantic housing environment may look like paradise. The average detached house price in Atlantic Canada is around $220,548 and is barely above $300,000 in Halifax. This compares to
There is also the wildcard of the new federal
$531,000 across Canada and more than $1 mil-
mortgage regulations that begin in January and
across the four provinces in fall 2017 to dis-
lion in Greater Toronto and Metro Vancouver.
may have a greater affect on Canada’s lowest-
cuss the issue with real estate and mortgage
Even in Nova Scotia, it is possible to buy quality
priced housing than in the rest of the country.
professionals.
waterfront houses for less than the price of a
The new lending regulations, meant to
Average resale prices are forecast to
cool hot housing markets such as Toronto and
drop a modest 0.2 per cent in Prince Edward
The average 2018 rental rate for a two-
Vancouver, are expected to have “negative
Island next year after posting a year-over-
bedroom apartment in urban Atlantic Canada
results for Atlantic Canada’s housing market,”
year increase of 7.2 per cent this year, said
is forecast at $914 and the average vacancy
according to Paul Taylor, president and CEO of
the Canadian Real Estate Association. New
rate at 4.8 per cent, according to CMHC’s recent
Mortgage Professionals Canada, who travelled
Brunswick and Nova Scotia will see some price
Housing Market Outlook.
14 Home BUILDER Winter 2017
condominium in Vancouver or Toronto.
4
124 Renovator profile economy in the renovation industry. A member of RenoMark with BILD Calgary Region, Lenstra cites unscrupulous contractors as one of the biggest challenges facing professional renovators. She said Kon-Strux
only one client ever request anything to do with the environment,” she said. “He was the only client willing to pay for it.”
Innovative thinking
is often called in to fix a renovation where the
Kon-Strux has branched into a “drag and
homeowner has already paid thousands of dol-
drop vacation cabins” recycling effort, howev-
lars for shoddy, even dangerous, work.
er, that could become an important extension
“The renovation industry has to find a way to get rid of the tailgaters, and regulate renovation companies,” she said. Her work with RenoMark wins praise from BILD Calgary Region
of the company. The company has begun buying mothballed construction trailers from Alberta oil well sites and converting them into affordable recreational cabins. Rural land is relatively inexpen-
“[Shannon] has been instrumental to our
sive, Lenstra noted, and the 14-foot by 60-foot
Renovation Advisory Committee and has vol-
refurbished trailers—which can be sandwiched
unteered as committee chair for a number of
together or stacked—are indistinguishable
years. She takes great personal pride in her
from detached houses, but less expensive.
business and is a staunch defender of best
They are also an example of the innovative,
practices within the renovation industry,” said
push-the-envelope thinking that keeps Kon-
BILD Calgary spokeswoman Sophie Gowsell.
Strux crews working near the top of Calgary’s
Lenstra is equally outspoken when it comes to environmental aspects of the building industry, something that is being entrenched in
residential construction business. So what now for Kon-Strux as the Alberta economy begins to slowly improve?
building codes across the country and may
“Bigger and better,” Lenstra said. “We want
soon baseline Canada’s national building
to be at the leading edge of our industry—and
codes. “In my 10 years in business I have had
help our clients achieve the lifestyle they want.”
“We want to be at the leading edge of our industry—and help our clients achieve the lifestyle they want.” Shannon Lenstra
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4 Market report
Home building In Halifax, the region’s biggest city, housing starts surged 34 per cent through the first half of 2017, compared to a year earlier, one of the sharpest increases in Canada. Halifax starts are expected to reach a range Tourism Atlantic
from 2,895 to 3,285 homes in 2018, said CMHC, compared to 2,949 in 2017. All told, though, Atlantic housings start numbers are relatively low, with a maximum of less than 9,000 new homes of all types expected to break ground next year, or about
Lunenburg, Nova Scotia: The average resale house price in Nova Scotia, the largest market in Atlantic Canada, is $227,245.
5 per cent of the Canadian total. It is expected that, as in most of Canada, starts of condos and townhouses will lead the market as the population continues to flow from rural to urban, and while immigration and the average age of the population increase. In Halifax, multi-family construction is leading single-detached starts by a ratio of nearly fourto-one and the gap is two-to-one in most of the other five major Atlantic cities. The exception is Fredericton, where the 445 starts expected in 2018 will be nearly evenly split between houses and multi-family units.
Any forecast for a slowdown in new home construction must be measured against the historically high levels this year, particularly in New Brunswick and Prince Edward Island.
Renovation Renovation spending in Atlantic Canada is in the $4.7 billion range in 2017 and, if national trends hold, should be north of $5 billion in 2018. More populous Nova Scotia leads, naturally, with current spending at $1.9 billion, according to the Canadian Home Builders’ Association. Generally, homeowners in the Atlantic Provinces spend the lowest amount per renovation contract in Canada, at $11,000. Like most things in the region, those numbers are not expected to change much in 2018.
Home BUILDER
Winter 2017
C
15
condo report
Wood New H Terrace House in Vancouver: At 19 storeys it is the tallest wood residential building in the world—and boasts among the most expensive condos in the country.
Reaches Heights
By Frank O’Brien
Changes to provincial building codes have raised the height and profile of wood buildings. Now developers in Vancouver and Toronto are elevating what was meant to be a cost and energy saving concept into luxury living.
completing a six-storey wood condo tower, the Cabin, where prices started at $714,900. While Vancouver’s newest wood condo tower is not only the tallest ever built, it is by far the most expensive. Terrace House, which starts construction this year in downtown Vancouver, “is the pinnacle of modern development and will stand among some of the greatest residential buildings in the world,” said Macario Reyes, founder and CEO of developer PortLiving. It certainly represents a new price and luxury pinnacle for wood homes. Half of the condominiums cover an entire floor of the 19-storey tower. The average-sized 2,200-square foot unit will be priced near $5.5 million—among the most expensive condos built in the city. The lowest cost condominiums at Terrace House start at $3 million. The project is the first in Canada for Japan’s Pritzker Prize-winning architect Shigeru Ban and is the tallest hybrid-timber structure in
In 2013, British Columbia was the first to
There is also a green advantage. Since
allow wood residential buildings higher than
wood sequesters carbon, using lumber reduces
As well as the oceanview location, owner
six storeys, but now new towers are soaring to
the building’s carbon footprint. It’s that lower
amenities will include 27-foot high ceilings,
18 floors and higher, and wood condominiums
footprint that could help some wood buildings
marble countertops and floors, and smart home
are selling for prices comparable, or greater
attain a LEED (leadership in energy and envi-
controls including electronic-controlled glass-
than, those built with conventional concrete
ronmental design) rating.
sliding panels to the terraces, in-floor radiant
and steel.
the world.
While the first tall wood buildings, such as
heating and cooling that extends to balconies,
There are a number of five- and six-storey
the 18-storey student residence being built at
architect-designed door handles and landscap-
multi-family buildings going up from B.C. to
the University of British Columbia—which is
ing, and, of course, a “dedicated concierge
Atlantic Canada.
aiming for a LEED gold standard—relied on
team.” The wood is sourced from a sustainably
Building with wood is certainly not new
government funding, private developers are
managed forest in southeastern B.C.
since every Canadian city has heritage build-
finding that wood condos can be privately built
ings, some as high as eight floors, that were
and profitable.
built with heavy timber and are still standing
In Toronto, Curated
Terrace House is expected to be completed in two years and could usher in a surge in wood
Properties is
condo construction.
C
a century later. The wood towers being being built today, however, uses engineered products such as glulam, a cross-laminated timber product that makes it easier to prefabricate building components. Solid panels up to 20 metres long can be produced in factories with cutouts ready for window and door openings. These components are then shipped to the site to form the walls and floors of the building. As well, the tallest structures are a hybrid, using concrete and steel for foundations, eleCurated Properties
vator shafts and stairwells. But the primary building material remains Canadian wood.
PortLiving
The biggest concern with building with wood is the fire hazard. But advanced sprinkler systems and other features make modern wood buildings as safe as any other, proponents say.
The Cabin is a wood-hybrid condo project in Toronto.
Home BUILDER
Winter 2017
17
builders speak
Person of the Year 2017:
Canada’s Home Builder Despite government disruptions home builders delivered 200,000 new homes and more than one million jobs in 2017
By Frank O’Brien
president of the Manitoba Home Builders’ Association. The federal government, meanwhile, raised interest rates by 50 basis points and introduced new lending regulations that made it harder for homebuyers across Canada to even qualify for a mortgage. The result of all this political meddling: Canada’s housing starts eclipsed 200,000, the inventory of new and unsold homes hit the lowest level in more than six years and housing prices reached record levels, according to North American Services Centre
Canada Mortgage and Housing Corp. New construction, renovation and repair accounted for more than one million jobs in 2017, making the industry one of the country’s largest employers. The investment value of all residential construction was exceeding $4.9 billion per month as of October, according to Statistics Canada building permits data. Despite headwinds, residential building permits were running at a near-record pace of nearly $5 billion a month in late 2017.
Canada’s home builders battled concentrated—and often misguided—government
In the Greater Toronto Area (GTA), the benchmark price of a new detached house surpassed $1.2 million, up 25 per cent from
made it harder to achieve zoning for detached
2016, while the typical condo price increased
houses.
42 per cent to nearly $500,000, reported BILD president and CEO Bryan Tuckey in late 2017.
attempts to disrupt housing demand and sup-
In Vancouver a new zero-emissions bylaw
ply to deliver the highest housing starts in
forced all new homebuyers to incorporate
The reason for the new home performance
nearly six decades in 2017. And they created
energy-saving measures that added tens of
is that government measures often ran counter
more than one million jobs in the process.
thousands of dollars to new homes that are
to reality and consumer demand, analysts say.
Canada’s largest housing markets—Greater
already the most expensive in the country. A
The foreign-home buyer tax, for example,
Toronto and Metro Vancouver—were the focus
province-wide BC Energy Step Code, intro-
was largely ineffective because there are so
of unprecedented disruption as all levels of
duced in April 2017, will add from $40,000 to
few foreign homebuyers – less than 1 per cent
government threw up barriers for homebuyers
$80,000 to the cost of a new house, according
of the Canadian housing market and no more
and builders. Yet as the year ended both mar-
to Casey Edge, executive director of the Victo-
than 3 per cent in the GTA according to the first
kets were thriving and new home construction
ria Residential Builders Association.
detailed data from Statistics Canada.
In Winnipeg, and other urban centres,
It is the simple desire of new Canadians
Last spring, following the lead of British
municipalities increased taxes on new home
to own a home that is having a much more
Columbia, the Ontario government launched
developments. In the Manitoba capital, a new
profound affect.
a 16-prong attack on housing demand and
fee added a $5.09 per square foot fee on every
supply in an effort to cool a white-hot housing
new home permit.
levels were setting fresh records.
A report in the winter edition of the Canadian Journal of Urban Research showed that
market. Among other measures it introduced
“On an average new house, this increas-
recent Chinese immigrants to Toronto and
a foreign-home buyer tax, tightened rental
es the construction cost to a homeowner by
Vancouver have a home ownership rate of
controls, introduced an empty home tax and
about $10,000 to $15,000,” said Lanny McInnis,
73 per cent, much higher than in the general
18 Home BUILDER Winter 2017
population. Across Canada, more than seven in 10 of those who arrived in Canada to become citizens between 2011 and 2016 now own their own home. The report notes that Canada’s decision to raise permanent immigration levels from approximately 270,000 in 2015 to 340,000 in 2020 “will surely have a significant impact” on Canada’s new home sales.
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mortgage measures could also be muted due to the “creative borrowers and increased activity among alternative lenders” according to CIBC deputy chief economist Ben Tal. “Actual [mortgage demand] will slow by only 5 per cent to 7 per cent [in 2018],” he forecast.
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12/8/17 11:08 AM
Home BUILDER
Winter 2017
19
renovators speak
Frontline Outlook for 2018 Busy top renovators take time from job sites to give Home BUILDER their take on challenges, changes and the outlook for 2018
By Frank O’Brien My hope is that by third quarter [we will see] a
and construction trades—which is the same
turn in the economy and spending will create a
story across Ontario, if not Canada, entirely.
noticeable, positive difference in our industry.”
The message needs to hit the school system so we can bridge the gap in coming years.” Southern Ontario housing sales were cooling in the fourth quarter, but Madsen does not expect renovation spending to follow suit. “I do anticipate the market heating up again. Definitely a prosperous year [ahead] for London and surrounding area.”
Heidi Smith, president of Spaces NL in St. John’s, Newfoundland and Labrador, said an aging demographic and the underground economy are issues Atlantic renovators will be facing in 2018. Smith said most local renovations concentrate on improving
Peder Madsen, co-owner of CCR Building & Remodelling Inc. of London, Ontario,
kitchens and bathrooms—solid-surface coun-
told Home BUILDER that the size of local reno-
tertops are popular—and walk-in closets,
vation contracts has increased, but he worries
which give homeowners potentially the best
about a looming labour shortage.
returns at resale.
“It is not uncommon to see half-a-million
An untapped market, Smith said, is “flex
dollar renovation now,” said Madsen. His
and accessible” renovations to meet the needs
12-person crew “is just swamped with work”
of NL’s large and growing aging population.
Madsen noted.
Looking forward, Smith said the biggest
“There is definitely a need for more city staff
challenge is NL’s underground economy, which she estimates accounts for about 30 per cent of spending taken away from “the honest business that has overhead and is paying taxes.” Another concern is that new federal mortgage regulations will affect the amount of home equity loans, which are often spent on renovations. St. John’s is dependent on the resource industry, Smith noted, and is coming off a “hard year.” But she is confident. “It is my opinion that 2018 will be slightly better and therefore hiring may be a possibility but not a certainty.
20 Home BUILDER Winter 2017
Condominium renovations will “certainly match or exceed the volume in detached house renovations.”
Tyson Hiebert, president of Hammerdown Home Renovations and General Construction Ltd. of Winnipeg, and a 2017 RenoMark award winner, sees the biggest opportunity in whole-house renovations. The majority of these homeowners are empty-nester baby boomers that are either approaching retirement or early into retirement, he explained. “These clients typically have equity in their home,” Hiebert said, with the means to pay for quality, extensive renovations. They prefer this to buying a new home that
could be more expensive, has higher property
in Canada and downsizing into a condo. “They
taxes and often a smaller yard, he said.
have the money...many see it as their last
“Our clients are requesting a finished prod-
home, so they are doing everything they have
uct that is above the standard new home build.
always wanted,” Capar said.
All of our kitchens have LED pot lighting and
But Vancouver’s new zero-emission bylaw
under-cabinet lighting. Custom vinyl tile and
and B.C.’s new Energy Step Code are causing
vinyl plank are extremely popular in all renova-
problems, he said. “The new Energy Step Code
tions. The options are endless with these prod-
in B.C. is going to bring about a lot of issues in
ucts. They are maintenance free, extremely
the renovation market for whole-house renos;
durable and budget friendly,” he said.
making even a mid-level reno become major
While Hiebert has seen fluctuating demand
as the new energy rules will require substantial
2018: one to assist in sales and another carpen-
Robert Capar, president of Maison D’etre Inc., a multiple award-wining Vancouver
ter to increase our production. Our reputation
renovation company, said two trends may
a CEA is taking up to a month and then you
that we have worked so hard for continues to
define local home renovations this year: the
have the two weeks waiting for report to be
allow growth.”
rise of condominium renovations and the chal-
produced before even applying for the permit.
lenge of meeting new energy codes in both the
Therefore the upfront costs are increasing and
city and across British Columbia.
the timelines to get a project to permit are
this year in Winnipeg, he is confident of a strong 2018. “I defiantly anticipate hiring to continue. My intention is to add two people to our team in
Home BUILDER wants to hear from frontline contractors and builders across Canada. Let us know your ideas, your comments and your beefs. Write us: editor@work4.ca
Condominium renovations will “certain-
upgrades to the whole house.” He added that Vancouver’s zero-emission bylaw that came to effect in May 2017 requires Certified Energy Advisor (CEA) Reports, which is causing delays. “Just finding and booking
increasing.”
ly match or exceed the volume in detached
Still, Capar expects to remain busy in 2018.
house renovations.” He noted many house
He plans to hire a project coordinator and “if
owners are selling the most expensive houses
they exist—a qualified renovation carpenter.”
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Home BUILDER
Winter 2017
21
home trends
Trends Paul Duchar
to catch in 2018
“Nesting” foldable wall windows are updated this year with superinsulated framing, floor mounted designs and highefficiency glazing in new NanoWall systems.
Smart TVs and appliances, simpler solar and efficient nesting window-walls top picks in trends By Sylva Shaw
that controls your shower from your
Systems, Inc. The company’s latest
smart phone are just two examples of
model is engineered to be floor sup-
The smart revolution leads the trends in
roof panels that can easily be remove
“stupid-smart”.
ported, eliminating the need to use
new homes and renovations for 2018,
for roof repairs or transport to a new
But some connected appliances could
steel, provides a U-Value of .21-.29,
but care must be taken that today’s
home. A number of manufacturers
become popular, perhaps even manda-
and can be customized in a wide vari-
new ideas won’t quickly be overtaken
now provide these, including Aquarius
tory, with consumers.
ety of sizes and finishes. The superior
by better ones.
Brands with its pre-wired portable
The next generation voice-activated
U-Values are achieved with a web
An example is the last-decade push for
Retrax Solar system that can be acti-
HUB 2.0 refrigerator from Samsung, for
of polyamide plastic reinforced with
whole-house Cat 5 wiring. After home-
vated in less than 30 minutes.
instance, has a built-in 21.5-inch LED
glass fibre thermal break in panel and
owners spent hundreds of dollars to
touch screen that acts as an interactive
frame profiles, according to the manu-
run coaxial cables, connectors and rout-
digital bulletin board. Family members
facturer’s website. The multi-chamber
ers into every room, Wi-Fi came along
can, through their smart phone, share
profiles with 1 3/16-inch wide quadru-
and made Cat 5 virtually obsolete.
photos, access updated calendars, and
ple thermal insulation and cavities can
Rooftop solar is a current tech fad,
write and post memos from wherever
accommodate either double or triple
but many homeowners are now real-
they may be. The HUB 2.0 fridge also
insulated glass. This could be important
izing that normal photovoltaic panels
has a camera inside that can be viewed
as tougher new Canadian energy codes
are expensive to install, add cost and
while shopping. The fridge will even
roll out.
complexity to roof repairs, and the solar
update your grocery list. Incidentally, it
Be smart when recommending new
investment can’t be moved when the
also keeps food cold.
tech trends to clients: ask if you would
house is sold.
Most other major appliance manufac-
install it in your own home.
A solution to this problem is solar
turers are now adding such connected
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Samsung
features to stoves, ovens and even dishwashers. Another trend to watch is “invisible”
Quick solar panels: Pre-wired portable Retrax Solar system from Aquarius Brands system can be activated in less than 30 minutes and easily removed for roof repairs or moving to a different home.
22 Home BUILDER Winter 2017
a mirror or wall art when not in use. Samsung’s super-thin 55-inch to 65-inch The Frame TV, introduced this year, has a picture-frame border and can rotate at least 100 different
Innovative smart home appliances con-
paintings.
nected to the Internet (and therefore
Foldable, or nesting, wall windows
to smart phones and tablets) are now
have been around for awhile but have
a top trend, but some applications will
started to catch on in new homes—
likely not catch on because they add
especially Vancouver’s high-rise
complexity rather than convenience. A
condos—and renovations, particularly in
smart kettle that sends you a message
vacation home makeovers.
when the water boils and another
The leader in the field is NanoWall
Samsung
Aquarius Brands
large-screen televisions that turn into Next generation: Samsung’s HUB 2.0 is a voice-activated refrigerator that includes a built-in 21.5-inch LED touch screen that acts as an interactive digital bulletin board.
Invisible televisions: New models can switch TV screens to become a large mirror or wall art, with eventually hundreds of paintings or designs to choose from.
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technology report
Work & Sales technology
By Dermot Mack
Y
Concord Pacific
From communicative safety gear to virtual reality, the latest technology keeps contractors and builders ahead of the curve ou have 12 guys working a large and busy construction site. A government safety
Realtors and potential buyers use virtual reality goggles to tour new homes before they are built. The goggles also help brief contractors before construction starts.
officer leans into your construction trailer to inquire about safety procedures. You
flip open your laptop and click on a feed com-
decreasing,” said LifeBooster co-inventor and
Guelph-based Granite Homes is offering a
ing from 24 armbands, two strapped to each
CEO Bryan Statham. These types of workplace
virtual reality experience of its model homes at
worker. The data is flowing from LifeBooster
injuries cost companies in Canada approxi-
its Doon West project in Kitchener. LandMark
wearables, a Vancouver company that is just
mately $2.4 billion a year.
VR Technology goggles allowed users to physi-
rolling out the technology.
The most important factor, according to
cally explore unbuilt homes in a virtual world
The data will send a warning about a poten-
Statham, is the ability to capture information
and interact with the features and finishes, said
tial fall, for example, and its continuous moni-
continuously to see cumulative risks through-
sales and marketing manager Sandra Aveiro.
toring shows where any worker is at high risk
out a day, which now takes a lot of time and
“Granite Homes aims to be at the forefront
of back strain, carpal tunnel syndrome, repeti-
money to obtain. “With new wearables that can
of technology when it comes to home tours,”
tive strain injuries, and other musculoskel-
be done quickly and effectively.”
Aveiro said. Granite plans to use the custom
etal afflictions. The system can track an entire
Virtual reality (VR) headsets are a boon to
workforce to build a database for reference and
the gaming and movie industry but they are
There are also always new tech tools to
produce reports and guidance to prevent injury.
also becoming a tech tool in home renovations
make the job of contractors easier. One of
For instance, it can pinpoint workers that con-
and home building.
these is the thermal imaging gun by Black
sistently lift objects improperly so the worker can be alerted and trained how to do it right. “Musculoskeletal injuries are the largest injury type and their numbers haven’t been
VR software in its future communities as well.
In fall 2017, renovation members of the
and Decker. It costs a bit over $50 and allows
Greater Vancouver Home Builders’ Associa-
a contractor to check for energy leaks. It
tion (GVHBA) set up a home show demonstra-
could become quite handy as energy codes
tion of how it works.
become more demanding. There are other
“The virtual reality 360-degree tour allows
more advanced detectors that will also show
clients to see what a renovation can and will
wiring, plumbing and studs behind the wall. C
look like,” noted Dawn Sondergaard of the GVHBA. VR is also being harnessed by many new home developers in both Toronto and Vancouver, who say it is a powerful tool when preselling new projects, especially to potential buyers who do not live in the area. Clients can don VR headsets and then take a virtual tour of
A contractor wears LifeBooster armbands that continuously monitor and report health and safety information to a central data base.
24 Home BUILDER Winter 2017
Black and Decker
LifeBooster
a new condo complex and its individual suites from anywhere in the world. Developer Concord Pacific is using VR headsets to sell new condo projects in both Toronto and Vancouver, and VR architectural renderings were also used to brief contractors before any walls went up.
Thermal imaging gun spotlights hot and cold spots in a home to help increase energy savings. Some can be used as advanced stud or electrical wire finders.
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TOOLTalk
The Science of Winter
It is the dead of winter and our clients are cold, if not freezing. So let me start with dog and cat doors that have been approved for a Passive House construction— withstanding 50 pascal blower door tests while letting animals in and out.
by Jon Eakes
Lab-tested Pet Doors for The Canadian Winter
thing as a pet door without compromising the
little-known aspect of the HeatLine company
energy efficient envelope. It is worth looking at
is their cables are self-regulating; automati-
Freedom Pet Pass doors were invented
this company’s technical information and third
cally adjusting their heat (energy) output at
in Bay City, Michigan out of the necessity of
party lab testing reports—a pet company with
each point (microscopically) along their length.
wanting to stop the snow from piling up in the
cold Canada in its heart.
As the surrounding temperature (water or air)
living room due to the wintertime failures of any and all dog doors. But this inventor hap-
Keeping Water Lines Frost-Free
increases, HeatLine products automatically decrease their heat (energy) output, and vice
pened to be interested in energy efficient con-
Many companies make heating wires for
versa. They can cross over themselves without
struction as well and built his unique double
roofs as well as pipes, but these wires are
burnout problems, allowing wrapping around
magnetic flapper to have no hinges to freeze
essentially ON or OFF and must not overlap. A
a valve while running along a pipe. In a long run
and break while still meeting the 50-pascal pressure standard of the best of construction. Then he created cat doors just as efficient, but cats still get through. We finally have a way to meet a customer’s demand for such a
26 Home BUILDER Winter 2017
to the lake, they only heat where it is cold, and only as much as is needed to stay frost free; so deep in the ground they rarely heat, and when close to the surface or even over rock they heat as needed. Their operational costs are lower and the cables last longer than those always heating, even though they are always ON and ready for the cold.
Snow Melting Rather Than Snow Shoveling A little-known fact about snow melting pads is that if they are clear when the snow starts, they will usually evaporate the snow on
Embedded hydronic snow melting systems
contact before there is any snow cover—hence
for large complexes are available from compa-
no water run-off and no need to leave them on
nies like HeatLink.
all the time. If turned on only during snowfall— evaporating the snow as it falls—an eight-step entrance would cost about one dollar for electricity for a six-hour snowfall. Would you pay a kid one dollar to shovel the steps?
Then There is The Need to Thaw The Ground If you need to build or repair in winter and the ground is already frozen, thawing the
Electrical snow melting mats from Heat-
ground is often the only way to dig. When the
Track are made differently for residential and
water main to the house has frozen, as hap-
commercial installations and are very flexible
pened to thousands of houses in Montreal last
in installation—as you can see in the photo.
winter when the sustained cold and little snow cover sent frost lines down 8 feet in places,
by radiation, and then the soil sends the heat
trying to thaw the pipe with electrical jumpers
down by conduction. When placed so as to
often has bad consequences back in the house.
avoid wind wash, they are extremely efficient
Thawing the ground itself is a better option.
without any open flames, thawing up to 1.6
A little-known fact about snow melting pads is that if they are clear when the snow starts, they will usually evaporate the snow on contact before there is any snow cover. There are several dozen ground-heating products on the market that range from chemicals to glycol-based systems, but the simplest apply direct heat. Using overhead heaters is the least efficient because the gas or electrical heaters heat the air that heats the ground and there is a lot lost in the middle. The Serious Toaster uses infrared heaters that have the advantage that they do not waste time with the air but heat the soil directly
inches per hour. Electrical ground thaw blankets can be very effective when they include topside insulation to hold the heat in. Heat blankets are reputed to thaw one foot of soil a day—and RapidThaw claims to be able to thaw frozen water pipes that are eight feet deep. Such pads are often easy to find as rentals. All of these direct heat options can be useful in curing concrete poured during freezing temperatures. Welcome to Canada, where winter is both an art and a science.
OL TO L K TA OL TO L K TA
Montreal-based TV broadcaster, author, home renovation and tool expert Jon Eakes provides a tool feature in each edition of Home BUILDER. www.JonEakes.com
Home BUILDER
Winter 2017
27
renovation
Rebates Offered for Green Renovations Ontario homeowners who complete energy-efficient renovations
can apply to become a par-
will be eligible for thousands of dollars in rebates under a new program
ticipating contractor with
announced by Ontario’s environment minister late last year.
the Green Ontario Fund. To
But only if they work with contractors registered under the program.
qualify, contractors need
The government will spend $600 million over four years to estab-
to provide confirmation of
lish the rebate program through a provincial agency called the Green
business licences, insurance, and professional certifications. Contrac-
Ontario Fund.
tors must also complete orientation sessions concerning the require-
The incentive program offers up to a $7,200 rebate for new insula-
ments of Green Ontario Fund incentives, obtain additional training
tion, up to $5,000 for new windows, and up to $20,000 for new ground
specific to each measure, and sign a participation agreement.
source heat pumps.
The government said buildings generate nearly a quarter of the prov-
The program has been launched online at GreenOn.ca. In order to
ince’s greenhouse gas emissions.
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access the rebates, homeowners must hire a contractor who has been screened by the Green Ontario Fund.
Online Searches Suggest Reno Surge
A qualified installer of insulation, windows and/or heat pumps
Some Renovations Pay, Some Don’t Sustainable Home Improvements
Perfect Touch Home Renovations of Hamilton recently told homeowners planning a sale that some renovations just aren’t worth the money. In an article in the Hamilton News, the firm said certain renovations may even turn off potential buyers.
Online search data suggests that more Canadians are planning renovations this year. Searches for general contractors across Canada jumped 117 per cent in the first few months of 2017, according to Nancy Peterson, founder and CEO of online contractor review forum HomeStars. “We’ve never seen that kind of volume,” Peterson said in an interview with BNN (Business News Network). Marvin Windows
“The data we’re seeing is clear. People are really nervous about moving because the cost of going from your condo or existing house and moving into something larger can be enormous,” she said. “I suspect people would rather invest in their home and stay put and see how they can increase the footprint in their existing space.” “Last year alone we saw project spending on renovations went from
Replacing drafty windows can pay off at resale time.
just under $17,000 to $21,000.” The tips include ignoring fads and trends that may not be suitable for potential buyers.
Condo dwellers are also dishing out more on fixing up their homes. Renovation spending on condos is up 40 per cent from last year, more
Some major projects, like a new roof or windows, can pay off, accord-
than double the average historical year-over-year increase. HomeStars data shows the price of renovating a basement, bathroom,
ing to Perfect Touch. “[But] this is not the time to put in a new pool or a home theatre.
and kitchen have all climbed by double digits over the past several years.
You will not recoup the loss on these big-ticket items, and it may even
The cost for home inspections and garage renovations has decreased
reduce your prospects.”
however.
The company is also wary on finishing a basement. “You may think converting that unfinished basement into a kid’s playroom or wine cellar will boost your home’s value but you have no idea what the new homeowner needs. It is easier to work with an empty space than to have to gut a room and remodel it.”
28 Home BUILDER Winter 2017
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Does Your Reno Council Have News to Report? Why not tell us what’s happening in your neighbourhoods? E-mail: editor@work4.ca
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Our Survey Confirms... Home BUILDER Magazine delivers results like no other magazine in the residential construction industry: C More than 110,000 readers eagerly read every issue in search for advice and contacts. C 100% of renovators and contractors found new information or products. C 86% of all builders found new information or products. C Renovators, contractors and builders all refer to web links, find new suppliers and purchase products as a direct result of Home BUILDER; more than 80% took two or more such actions.
Home BUILDER Magazine: Readers, Referrals, Results
31
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IndustryNews
Less Than 1 in 10 GTA Sales is a New House Sales of new single-family homes contributed only nine per cent (312 units) to total new home sales in November, down 82 per cent from a year earlier, 76 per cent below the 10-year average for November, and a record low for any November single-family sales since Altus started tracking in 2000. With 7,455 units sold, single-family homes represented only 17.3 per cent of the 42,992 new homes sold in the GTA up to the end of November. “The November data should not be interpreted as a sign of diminished demand for single-family housing in the GTA, in fact, quite the opposite,” said then BILD President and CEO Bryan Tuckey. “Single-family housing is still the first choice for many people, especially for those with families.” But Tuckey said many buyers simply can’t afford a new house. In Of the 3,473 new homes sold in the Greater Toronto Area (GTA) in November 2017, less than one in 10 was a new detached house, according to data from Altus Group and the Building Industry and Land Development Association (BILD).
November, the benchmark price for new single-family homes was $1.22 million, 25.1 per cent above the benchmark price in November 2016. “Our industry wants to build the single-family homes people want at prices they can afford, but we are required to implement provincial
About 91 per cent of these sales (3,161 units) were condominium
policies such as the Places to Grow Act, which mandate intensification.”
apartments in low, medium and high-rise buildings, stacked townhouses
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and loft units.
B.C. Bans Dual Agencies
CALENDAR
The B.C. government has banned dual agency residential transactions in a series of measures meant to cool speculation and shady deals in the province’s hot housing market.
International Roofing Expo February 6-8 New Orleans, Louisiana theroofingexpo.com
Canadian Concrete Expo February 7-8 International Centre, Mississauga, Ontario canadianconcreteexpo.com
BUILDEX Vancouver
National Home Show March 9-18 Enercare Centre Toronto, Ontario nationalhomeshow.com
New York Build Expo March 14-15 Javits Centre, New York, New York newyorkbuildexpo.com
Tradeshow and conference February 14-15 Vancouver Trade and Convention Centre Vancouver, B.C. buildingscanada.com
Montreal Real Estate Forum
American General Contractors Association
BUILDEX Edmonton
ACG 99th annual convention February 26-28 New Orleans, Louisiana convention.agc.org
Calgary Home & Garden Show March 1-4 Stampede Park Calgary, Alberta calgaryhgs.com
Construction Expo
March 9-10 Agriplex Surrey, B.C. theconstructionexpo.com
30 Home BUILDER Winter 2017
March 18 Palais des congres de Montreal Montreal, Quebec realestateforums.com
The changes take effect March 15, 2018. These will include better informing buyers about how much commission realtors are entitled to, as well as restricting dual agency, where when one agent acts on behalf of both buyer and seller on the same deal. The changes stem from recommendations made last year by an independent advisory panel created by the former B.C. Liberal government. The panel had suspected speculation in the housing market, with many properties being quickly flipped after they were sold.
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March 20-21 Edmonton Expo Centre, Edmonton, Alberta buildexedmonton.com
CHBA National Conference March 21-23 Fairmont Hotel Victoria, BC chba.ca
INF E B
D E M OR
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March 22-25 International Trade Centre Regina, Saskatchewan reginahomebuilders.com
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IndustryNews
Net Zero Compliance Will Be Costly Making all new homes “Net
and under the basement floor;
Zero” in energy terms—as expect-
windows and doors are upgrad-
ed to be mandated by the federal
ed; the roof is reinforced to allow
government for 2030—will be
for the weight of solar panels; bet-
costly to home builders and buy-
ter and more efficient mechanical
ers, according to Bob Finnigan,
systems are required; conduit is
a past president of the Canadian
needed for future energy sourc-
Home Builders’ Association.
es... and the list goes on,” he said.
A true Net Zero home pro-
Finnigan
estimates,
with
duces as much clean energy as
today’s technology, it would cost
it consumes. These homes are
$22,000 to $40,000 depending on
up to 80 per cent more energy-
the house size and type, to make
efficient than typical new homes,
a new home Net Zero.
and they use renewable energy
“That is a huge amount of
systems to produce the remain-
additional cost to the new home-
ing energy they need, Finnigan
owner, and, without the benefit
explained in a recent column in
of a renewable energy system,
the Real Estate News Exchange.
which can double the cost, the
But Finnigan warns it will be expensive to reach this target.
payback in energy savings does not make economic sense today,” he
“The framing changes; walls get thicker; vapour barriers and air-
said.
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sealing are more detailed; there is a lot more insulation in the walls, roof
A d v e r t ise rs in Th is Issue Advertiser
Page Phone
Website
Altus Group Limited . . . . . . . . . . . . . . . . . . 31 . . 877-953-9948 . . . www.altusgroup.com Federated Insurance Company of Canada . .23 . . 844-628-6800 . . . www.oneloonie.ca
Home Prices Will Rise 4.9 Per Cent Average home prices in 53 Canadian cities are expected to rise by 4.9 per cent by the end of 2018 to about $662,000, according to December 2017 outlook from Royal LePage. The estimate comes amid efforts to address housing affordability
Icynene Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . 800-363-4040 . . . www.icynene.ca
in Greater Vancouver and the Greater Toronto Area. These include the
IKO Industries Ltd. . . . . . . . . . . . . . . . . . . 2, 21 . . 855-456-7663 . . . www.IKO.com
upcoming mortgage financing stress test by the Office of the Superinten-
Malco Products Inc. . . . . . . . . . . . . . . . . . . 19 . . 800-328-3530 . . . www.malcotools.com
dent of Financial Institutions (OSFI), which is now in effect.
Meridian Brick and Masonry Supply . . . . . BC . . 770-645-4513 . . . www.meridianbrick.com
Royal LePage expects the new measure will slow the housing
Owens Corning Canada LPF . . . . . . . . . . . . . 7 . . 800-438-7465 . . . www.owenscorning.ca
market, particularly in the first half of 2018, as buyers adjust both their
Royal Building PRODUCTS . . . . . . . . . . . . . 21 . . 614-754-3463 . . . www.royalbuildingproducts.com
expectations and finances.
Simpson Strong-Tie Canada . . . . . . . . . . 4, 21 . . 800-999-5099 . . . www.strongtie.com
“With a large number of existing homeowners potentially failing the
Taiga Building Products Ltd. . . . . . . . . . . . . 13 . . 403-279-0926 . . . www.taigabuilding.com
test when refinancing, a temporary reduction in consumer confidence
TYPAR / Fiberweb Inc. . . . . . . . . . . . . . . . . 25 . . 800-284-2780 . . . www.typar.com
may further stagnate price growth as potential buyers and sellers take a ‘wait and see’ approach,” Royal Lepage noted.
Home BUILDER
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Winter 2017
31
You made
a LASTING
IMPRESSION on me.