Canadian construction on the rise despite setbacks

The most recent figures from the January 2023 employment Force Survey by Statistics Canada point to a further tightening of the already-stretched national employment market.

In January, the national economy as a whole added 150,000 jobs, the majority of which were full-time positions. An rising trend in total employment that started in September 2022 was maintained with this increase. about that time, the economy has grown by about 326,000 jobs, or 1.7%. The percentage of adults aged 15 and over who are employed, known as the national employment rate, increased to 62.5%. People aged 55 to 64 had the highest employment rates (70.1%).

The rise in employment led to a constant 5% national unemployment rate, barely above the record-low 4.9% recorded in June and July 2022.

Even though outdoor work is at its lowest point of the year in January, the construction industry saw increases in employment.

The number of workers employed in the industry in January 2023 increased by 119,000 (+8.6%) from January 2022 levels. The labour force increased by 8%, or 120,800 people, to 1,632,400, a performance that was similarly excellent. Because of this, the unemployment rate in the construction sector decreased from 8.4% in January 2022 to 7.8% in January 2023.

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With ongoing demand for new housing, Canada has also seen the boom of property maintenance service demands. New homes and condominium buildings need to be kept up to code and aesthetic appeal. It is difficult to maintain a house or a condo building, but if neglected or put off, present tenants may leave and the property won’t draw in new buyers. In order to run a successful real estate firm, one must always take good care of assets and tenants.

While Canadian manufacturing has seen enormous layoffs in the past decade, construction jobs and demand for construction and post construction workers is very encouraging. The thirst for more homes in Canada needs to be quenched, more houses need to be built in order to sustain growing population. Growing demand for construction in Canada gives opportunities to other medium and small businesses to prosper. Post construction clean up, debris removal, landscaping, exterior cleaning, pressure washing, window washing services are on the rise with construction demand.

It is estimated that between 2023 and 2030, the housing supply will rise by 2.3 million units if the current rates of new construction continue. By 2030, this will amount to over 19 million housing units. By 2030, more than 22 million housing units will be needed to help make housing affordable for every Canadian. Beyond the anticipated increase in the number of households, providing additional housing will improve the ability of households to match up with the dwelling they desire.

Ontario, British Columbia, and Quebec need the most new housing supply. Of which, more than half are necessary in Ontario. Two-thirds of the 3.5 million needed are needed in British Columbia and Ontario, where we observe the biggest increases. The least cheap housing markets are found in these two provinces.

The cost of living in Quebec has significantly increased since it was once a cheap market.

In several of Canada’s largest urban centres over the past 20 years, the housing supply has not kept up with demand, which is mostly to blame for the decline in affordability.

READ MORE: The Importance of Properly Maintaining Homes in Canada

As home prices continue to rise, the importance of repairing and improving homes has never been so high. To buy a new home means to sell your old one and sell it for most money you can get because moving costs and realtor fees add up to a potential loss. To get the most money out your property is to have the property in top shape, which means: the grounds have to be groomed and washed, the roof has to be in good order, kitchen, washroom and so on needs to be pleasing to the eye.

Even if selling is not set for your near future, regular property maintenance needs to be done in order to keep up with the demands. Canadian weather will slowly deteriorate your roof, chew on your deck and fence, grass and weeds will start growing eventually in between interlocking pawers, doors and windows will need fresh caulking and gutters will invite water into your home if not cleaned regularly. Maintaining your property can be costly, but avoiding it will cost 10 times as much in future repairs.

Regardless if buying a new home or carrying for condominium property, leaving your investment to deteriorate is a bad choice.

There are significant obstacles to overcome in order to accomplish the 2030 target

Canada’s approach to housing supply must be reconsidered. It must be done in a different way. To meet demand, the housing sector — including governments — must undergo radical restructuring, with a focus on increasing home supply. Even with the current plans, the housing sector, including government policies and processes, requires a drastic reform. Canada’s strategy to housing supply must be reconsidered and revised.

Canada is second largest country in the world, 9.9 Mio. km2, most of this land is not used. New immigrants, 1,4 Million of them will arrive in 2023 and most of those will settle in busy urban areas such as Toronto, Vancouver or Calgary. Developers must buy expansive farmland around big cities in order to build new homes, making affordability a wishful thinking. Building basement apartments in every GTA or Vancouver home is not a solution either. So what needs to be done here?

It can be very simple if Government actually wants housing prices to come down. Designate more land for building homes around busy cities as well as building homes and infrastructure in less developed parts of the country.

The majority of the lands in Canada are controlled as public land by governments and are referred to as Crown lands. Approximately 89% of Canada’s land area (8,886,356 km2) is Crown land, which might be federal (41%), provincial (48%), or private (11%).

If Canada wants to attract new immigrants, new work force and new employers, then making more land available for development is crucial to improving affordability.

Canada needs the construction backbone of the country, Canadians need affordable homes, doesn’t this sound like a WIN-WIN situation?