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The Canadian Mortgage and Housing Corp. reports there has been 535 more new home starts through the first seven months of this year compared to the same period in 2023 in the Windsor census metropolitan area (CMA).
Through July, there have been 1,251 home starts versus 715 last year. The Windsor CMA also includes Lakeshore, Tecumseh, LaSalle and Amherstburg.
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“I think this is a result of developers changing their product offerings,” said Windsor Essex Home Builders’ Association president Brent Klundert of the 57 per cent jump in new home starts in the year to date.
“Builders, since things started to dip in late 2022, have been working at changing their product offerings to meet the market’s need for more affordable housing. It takes a little time, a year or so, to get through the planning process so there has been a lag, but now product is starting to move.”
Locally last month there were 186 new housing starts, which exceeds the Ontario monthly target for the area.
The provincial housing target for the region over 10 years is 13,000 homes or 1,300 annually.
At the end of July, there were 1,657 residences under construction including projects that started prior to Jan. 1.
“That number is starting to push the upper max of what we’ve done in this area,” Klundert said. “You also have to remember, a lot of that is condo and apartments.
“Single family homes are still lagging a bit. It makes it exciting to think of the market once single-family homes pick up and get going.
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“Once we have all three going, we’ll blow the doors off what we’ve done in the past.”
Apartment construction accounted for 95 of July’s new start while single-family homes enjoyed 56 new starts to follow up last month’s 59 starts.
There were also 28 new semi-detached and seven row homes that saw shovels go in the ground last month.
The mix of new home starts saw 37 per cent being condos, 36 per cent were apartment rentals and 27 per cent were home ownership (single family, townhouses).
“That’s a change for this area,” Klundert said. “Single family, townhouses and semi-detached have ruled this market.
“The move to condos and apartments again reflects builders moving to meet the market demand for affordable housing.”
Klundert said in the single-family sector there has been a steady trend downward in average pricing among the homes being occupied.
In April the average price of a new home purchased was $1.1 million while in July it was $932,000.
“I think the price decrease is a result mostly of developers offering different, more affordable products,” Klundert said. “There is also a bit more stability in material prices, but it’s more to do with the type of products being offered.
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“The custom builders are still doing fairly well, but new homes under $1 million is where it’s mostly at.”
Klundert said it isn’t surprising demand for homes of all types is picking up given the area’s robust population growth. Statistics Canada reported Essex County/Windsor added nearly 32,000 people in 2023.
He said he’s noticed a a growing demand for affordable, semi-detached homes in particular.
“We’re also seeing a surge in homes inventory in the resale market, but it’s different this time than in the past when we had a lot of homes for sale,” Klundert said.
“This time people aren’t moving away they’re staying. They’re looking to right size or downsize.
“The consumer that’s buying has a lot of equity in their current home.”
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