H
O
M
E
September 2016
THE MAGAZINE OF THE CANADIAN HOME BUILDERS’ ASSOCIATION
ANNUAL RENOVATION ISSUE
Biting the Dust Seniors Mean Business Common Electrical Hazards in Older Homes Big to Small: Tool Talk Has It All Market Report: Alberta Understanding the Impact of CSA P.9-11 on Combination System Design
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contents
CHBA Report 26 27
14
President’s Message CEO’s Update
COMMON CENTS CONSTRUCTION: Would You Know a Suspicious Transaction if You Saw One?
Columns 9 Economics 10 Building Science 12 Customer Satisfaction 14 Common Cents Construction 15 Expert Opinion 28 Tool Talk
16
Departments
SENIORS MEAN BUSINESS
6 News 8 Association 30 Renovation 31 Calendar 31 Advertisers Index 31 Industry News
Does this growing demographic represent an opportunity for your company? CHBA research says the answer is a resounding “yes.”
9
ECONOMICS: 2016 A Strong Housing Starts Year Despite the Economy
COVER Shakespeare Homes & Renovations Inc. 2016 CHBA National Awards finalists, Renovation - any room.
Home BUILDER Magazine is published by Work-4 Projects Ltd. six 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 September 2016 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: September 2016
In red-hot housing markets, where housing prices have increased by up to 30% within the last year, it can often be difficult to spot the difference between legitimate home purchases and illegal money looking for a place to hide.
22
BITING THE DUST Construction sites are known to be dusty and dust itself is not only bothersome, it can be deadly, dangerous or even explosive. Any renovator working in an occupied house knows that dust is his number one customer relations’ issue. But what can or is being done about it?
At the outset of 2016 there was a broad range of expectations for housing starts. However, well through the year, and the pace of new housing construction continues strong.
12
CUSTOMER SATISFACTION: Customers: Know Them to Delight Them Today’s customer experience begins long before a home shopper walks through the doors of a model home, and that experience continues long after a home buyer takes possession of a new home.
31
TOOL TALK: From the Biggest to the Smallest of New Tools Another stellar line-up of new products from our resident tool guru Jon Eakes.
20
MARKET REPORT: Alberta Forecasts, snapshots and a fond farewell to CHBA – Alberta CEO Jim Rivait.
Next Issue: November/December
The News, The Facts The Stories...
Industry Leaders Speak / Technology & Trends A selection of the latest opinions and advice to our readers— direct from top builders, contractors, renovators, designers, manufacturers, retailers, and industry professionals. Integrating technology and communications into home design and decor, plus energy efficient trends, programs and solutions.
To book your premium ad space, call homeBUILDERcanada.com 514-620-2200 or e-mail sales@work4.ca
Home BUILDER September/October 2016 5
NEWS
CHBA: 2015 Economic Impacts of Residential Construction OTTAWA — The Canadian Home Builders’ Association (CHBA) has released its report on the 2015 Economic Impacts of Residential Con-
produced by the industry in 2015 exceeded $128 billion, based on Statistics Canada Building Permits data.
struction. The new estimates show that, in 2015, the industry supported
At the national level, construction of new homes represented 46%
over one million jobs in new home construction, renovation and repair,
of total residential investment, while renovation and repair of existing homes accounted for 54%. Each year, CHBA produces detailed economic impact data for the residential construction industry, drawing on data compiled by Canada Mortgage and Housing Corporation and Statistics Canada. Analysis is conducted by Will Dunning Economic Research for the CHBA. Data are available at the national, provincial and territorial levels, and for 106 different regions and communities across the country. The full set of reports can be accessed at www.chba.ca.
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The Province: GVHBA CEO De Wit Estimates Job Loss in B.C.’s Residential Construction Industry In a recent interview with The Province, Bob
de
Wit, CEO of the
Greater Vancouver Home Builders Association, said job losses could be and continues to be one of the largest employers in Canada. One of every
as high as 5,000 positions by the end of the year if construction levels
18 workers in Canada is employed, directly or indirectly, in residential
decline in keeping with the reports he’s hearing from members.
construction. Total wages paid in 2015 were $58.5 billion. The investment value of new homes, renovations and repairs
“It’s pretty straightforward,” said de Wit. “It’s buyers who will now have to pay this higher tax, so they don’t have personal resources to put into home improvements.”
CMHC: Atlantic Canada at Demographic Turning Point The Atlantic Provinces have a set of characteristics that make them
De Wit said that, to the extent that the tax pressure bites into presales and affects financing new projects, he doesn’t think it is a stretch to estimate a decline in housing starts that would put a 10% dent in Metro Vancouver’s 55,000-member workforce in residential construction.
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unique. This is evident in both their demographic trends and in how housing demand has evolved. In the four Atlantic Provinces, the young adult population aged 25 – 34
BMO: Reducing Debt a Top Priority
has been dwindling while the population 75 and over continues to grow
CHICAGO — BMO Wealth Management (U.S.) has released a report,
rapidly. Fewer young adults means fewer household formations and a
Your Personal Net Worth Statement, which examines how Americans bal-
smaller and delayed pool of first-time home buyers. An aging population
ance their decisions between saving, investing, borrowing and spending
base, however, means a greater demand for rental accommodations. As
as they navigate different life stages and plan for their financial goals.
the population continues to age more rapidly, the availability of seniors’
The report showed that for almost a third of American respondents
housing and the ability to help others to age in place will be critical. C
(31%), the single most important financial priority is to reduce or eliminate debt. The BMO report depicts
The Magazine of the Canadian Home Builders’ Association Vol. 29 No. 5 September/October 2016
the following financial priorities for Americans: Saving more (26%) Investing effectively and
Publisher Nachmi Artzy pub@work4.ca
A W O R K - 4 P R O J E C T S LT D . P U B L I C AT I O N
Contributors: Tim Bailey Tim Birnie Jon Eakes Jennifer Fiddian-Green Brian Jackson Peter Norman Gary Sharp
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 Judy Penz Sheluk editor@work4.ca
tax efficiently (21%) Budgeting (14%)
Published by Work-4 Projects Ltd.
Spending on personal
Advertising/Editorial: 4819 St. Charles Blvd. Pierrefonds, Quebec Canada, H9H 3C7 Phone: 514-620-2200 www.homebuildercanada.com
of respondents. Millennials (aged 18-34) are focused on saving to meet
needs or goals (4%) The report also showed that priorities change depending on the age shorter term goals such as a downpayment to buy a home (30%). Meanwhile, the most important financial priority for Boomers (aged 52-70) is to reduce or eliminate debt (35%).
6
Home BUILDER September/October 2016
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association
SIZE MATTERS.
BILD Builds for Habitat for Humanity
TORONTO — Sixteen BILD members braved the scorching August heat and volunteered at Habitat for Humanity GTA’s Birchmount Road
When price is dictated by time and time is dictated by speed...SIZE MATTERS.
site building homes for low-income families. The group of volunteers rolled up their sleeves and spent an entire day framing, putting in insulation, placing vapour barriers and installing casement windows.
At NUDURA, size does matter. NUDURA standard forms feature DURAMAX Technology™, the largest standard ICF block in the industry, allowing the placement of 12 square feet of wall area in one building step. Our DURAMAX Technology™ results in faster installation
When completed, the site’s eight two-storey semi-detached homes and one single-detached house will be home to nine families.
Submitted by Andrei Zaretski, BILD.
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First Five Homes Qualify for CHBA’s Net Zero Energy Label OTTAWA — On July 25, CHBA qualified five Net Zero Energy (NZE)
times, less waste and a reduced amount of seams.
homes built by Reid’s Heritage Homes, and the first Net Zero Energy ready
Building Has Evolved™ at NUDURA, allowing builders &
Energy Labelling Program Pilot. These are the first homes to qualify for
contractors to save time on labour, which is money, with the biggest block on the market.
(NZEr) home built by Lucchetta Homes, under the Associations’ Net Zero this prestigious recognition. “The CHBA would like to congratulate the teams at Reid’s Heritage Homes and Lucchetta Homes for being the first to achieve this milestone under our new program.” said Sonja Winkelmann, Director, Net Zero Energy Housing. “We would also like to thank the CHBA’s NZE Qualified
Learn more at a NUDURA Training Academy Course
experts that supported the project—the Service Organization EnerQuality and Energy Advisor Andy Oding—for the third party testing and inspections. Together, the builders, their teams, and CHBA have reached a monumental point in Canadian housing.” CHBA’s national Home Buyer Preference Study recently confirmed that today’s consumers are looking for energy efficient homes. The Net Zero Energy Labelling Program identifies the best of the best in home energy efficiency, and provides Third Party confirmation for both the industry and the consumer.
Visit www.nudura.com/trainingacademy for more information on courses near you.
www.nudura.com | 1-866-468-6299
8
Home BUILDER September/October 2016
Don’t Be Shy! Follow us on:
PRIMARY MEMBER
We know your local HBA is doing all sorts of great things in your community. To share your story, email Judy Penz Sheluk at editor@work4.ca.
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ECONOMICS
2016 a Strong Housing Starts Year Despite the Economy
By Peter Norman
Budget 2016 announced some $1.4 billion in spending to be administered through the Investment in Affordable Housing (IAH) program.
At the outset of 2016, there was a broad range of
job growth— most recently 3.7%—into very strong in-
expectations for housing starts. Many banks started
migration and housing demand. B.C. is on track for
the year with fairly dour forecasts on the backs of slow
some 44,000 housing starts this year and if so, this will
economic growth and continued disruption in the energy
be a record year for new home construction. The strong
sector—as low as 170,000 units. Meanwhile, escalating
demand has been putting pressure on prices in recent
housing prices in the spring in certain markets raised
months, especially in the Vancouver lower mainland
concerns about a housing bubble, and British Columbia
area, which remains a somewhat supply constrained
new foreign buyer tax has raised uncertainties.
market.
However, well through the year, and the pace of new
In an effort to address price pressures, the B.C. gov-
housing construction continues strong. Total Canada-
ernment introduced a 15% foreign buyer property trans-
wide housing starts came in at 197,400 units season-
fer tax this summer. While there is considerable specu-
ally adjusted at annual rate (SAAR) over the first seven
lation now about the ultimate effect of the tax, it is our
months of 2016, according to CMHC, up 7% from the
opinion that there will likely not be any significant impact
same period last year. Both single-family and apartment
on the pace of new construction, which continues to be
starts are responsible for the surge this year, but most of
predominantly driven by job growth, demand from mil-
the gains are found in Ontario and B.C., largely offset by
lennials and domestic migration.
declines in Alberta, Saskatchewan and Atlantic Canada.
By contrast to the red-hot conditions in B.C. Alber-
The surprisingly strong pace of national starts holds
ta’s recessionary economy means slower conditions for
a couple of lessons about the nature of the current hous-
housing, but still holds some important lessons. Alberta
ing economy:
is now almost two years into its economic downturn
77 Despite seemingly sluggish overall GDP growth—the
brought on by a sharp decline in the price of oil in the
Canadian economy expanded just 1.0% in the year to
middle of 2014. In the past year the Alberta economy has
May 2016—the two-speed nature of growth continues
shed some 50,000 jobs and wildfires in Fort McMurray in
to keep housing demand strong in those regions such
the spring of this year took an even sharper dent out of
as Ontario and B.C., which are growing and attracting
the economy.
migration.
Despite all of this, Alberta’s housing sector is holding
77 Purpose-built rental construction is strongly on the
on. Housing starts through the first seven months of this
upswing. In 2015 there were over 21,000 rental starts
year averaged 24,000 units SAAR, which is down signifi-
in Canada’s 10 largest centres—more than double its
cantly from a 10-year average of about 35,000 starts, but
recent average. And purpose-built rental starts are
otherwise the housing market remains fairly balanced.
up a further 16% in the first half of 2016. The strength
Resale housing prices were up about 2% year-over-year
of this sector has to do with improving economics of
across the province in July and the New House Price Index
rental building investment, alongside increased appe-
has just dipped into negative territory. The steady perfor-
tite for this investment class from major pension funds
mance of the Alberta housing market through significant
and other institutional investors.
economic distress has been encouraging.
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77 Federal money is trickling into affordable housing. Budget 2016 announced some $1.4 billion in spending to be administered through the Investment in Affordable Housing (IAH) program. While not all of these funds are related to new construction, or have been deployed yet, they are stimulating new construction of affordable units across the country. 77 Home buying intentions remain elevated, even in Alberta. According to the Altus Data Solutions Home 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 homebuilding and real estate industry. He can be reached at peter.norman@ altusgroup.com.
buying Intentions Index, expectations remain elevated both among all households and current renter households. The areas with the strongest intentions remain Ontario, Atlantic Canada and Alberta (see Chart).
B.C. and Alberta: Contrasting Conditions One of the hotspots for new construction has been B.C., which has parlayed a nation-leading pace of recent
Home BUILDER
September/October 2016
9
BUILDING SCIENCE
Understanding the Impact of CSA P.9-11 on Combination System Design After the introduction of hydronic heating and instan-
By Brian Jackson
mechanical equipment.
taneous water heaters and boilers in the 1980s and early
The CSA P.9-11 standard, applied to ESNH, permits
’90s, there were countless issues that caused grief for
use of the prescriptive method and the BOP optional
builders, homeowners and manufacturers alike. In an
points awarded will be defined in the standard based on
effort to correct this legacy of mistakes, the CSA P.9-11
the type of home and its location. Since the CSA P.9-11
Standard was crafted.
standard applies to ESNH builders using combo systems,
CSA P.9-11 outlines a method to assess whether
it is mandatory to use systems with a certified CSA P.9-
multiple Combo System components from the same or
11 result to be certified to ESNH. The system Thermal
different manufacturers are working together to derive
Performance Factor (TPF) number will define the system
maximum system efficiency and to provide a standard
eligibility and whether optional points are awarded.
metric to compare different system approaches.
The trend toward smaller residences such as attached
Systems designers and builders have the freedom to
housing and multiple-unit buildings, with significantly
match up components as they see fit to make a complete
smaller heating loads, can lead to a mismatch between
Combo System. Any hot water source—instantaneous
the appliance capacity required for domestic water sup-
water heater, boiler, combo unit and tank—can be com-
ply (at 120-200 MBH), and the smaller space heat loads
bined with any fan coil—high or low velocity, multi-zone
of around 25 MBH. These two pieces of equipment work
or single zone. The components can
better when they’re more closely matched in capacity.
come from any manufacturer or mix
A 25 MBH fan coil and matched with a 150 MBH instan-
of manufacturers. This can create
taneous water heater will likely not work optimally and
problems if done without foresight.
may give you a low TPF.
Using this design approach doesn’t guarantee an efficient sys-
announced there were implementation problems:
components are combined. Dif-
The manufacturers of equipment who needed to con-
ferent components have different
duct the P.9 tests on their equipment found that there
characteristics, which makes pre-
were not many labs that could complete the work, and
dicting system performance at varyFor example, a 25,000 BTUH fan
upward of $10,000 per system. Moreover, not all
coil paired with a 120,000 BTUH
builders build to ENERGY STAR and the standard at
condensing
instantaneous
hot
the time applied only to ENERGY STAR builders.
water heating appliance with a 5:1
Natural Resources Canada (NRCan), the federal body
turndown ratio will operate reason-
that publishes the test results and determined the ini-
ably efficiently at 100% heating load
tial efficiency target, gave manufacturers six months
(which occurs approximately 10% of
to comply after releasing the TPF threshold.
the heating season), but very poor-
There was not enough time to meet the initial dead-
ly at most other conditions (which
line, which was, fortunately, extended. At the time of
occurs 90% of the time).
print there are 57 systems a designer can choose from
Such “mismatches” affect ENERGYSTAR for New
Brian Jackson is a professional engineer with 32 years experience in mechanical equipment design and systems application. With respect to CSA P.9-11, he ran the tests for Airmax/Flowmax Technologies, a manufacturing company that has a majority of the P.9-11 rated systems on the NRCan website.
only one in Canada. For the manufacturers, the tests are expensive—
ing loads near impossible.
Complete P.9-11 Rated System
Immediately after the Standard adoption was
tem even if two high-efficiency
and more are in the test phase.
Home (ESNH) builders where CSA P.9-11 is a require-
The CSA P.9-11 requirement has now been adopted
ment. Building designers wishing to ensure compliance
into Canada’s National Building Code as a minimum
with ESNH can approach it in one of two ways: prescrip-
requirement with a relatively low TPF. It is being men-
tive or performance. The prescriptive method involves
tioned in some Provincial codes as well.
choosing a Builder Option Package (BOP)—a set of pre-
The rationale behind the CSA P.9-11 standard is
scribed building details that when combined ensure
sound. It defines your chosen system performance and
compliance with the code.
efficiency and gives third party verification that the set
The performance method is used when you do not
of components will perform properly if applied correctly.
or cannot comply with the standard set of details in
Manufacturers are working on the next generation
the prescriptive method. In this application, a builder
of instantaneous water heaters and boilers that can
employs an energy-evaluating firm to model the build-
modulate lower and maintain thermal efficiency at lower
ing envelope to optimize energy efficiency by defining
modulation levels to properly align with the smaller load
the building construction techniques and all construc-
requirements of the fan coil.
tion details like insulation, architectural materials and
10 Home BUILDER September/October 2016
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Customer satisfaction
Customers: Know Them to Delight Them Today’s customers approach home buying from
By Tim Bailey
The 2016 study generated big data on home features
moment they start shopping they expect data, customer
and design preferences. When analyzing the array of
reviews, virtual tours, social media interaction and more.
items that home buyers ranked on a scale from “must
The customer experience begins long before a home
have” to “not important at all,” there are three distinct
shopper walks through the doors of a model home, and
themes that emerge in the study. The first is the impor-
that experience continues long after a home buyer takes
tance of energy-efficiency to today’s home buyers. A
possession of a new home. Designing homes and a home
second is a strong desire for storage spaces. And the
buying experience with an intimate understanding of
third affirms that the kitchen is truly mission-control for
today’s customers is a key element for success.
today’s home buyers.
In 2015, the Canadian Home Builders’ Association
the 2016 study is:
nationwide market preference study for the home build-
1. Walk-in closets 2. Energy-efficient appliances 3. High-efficiency windows 4. Overall energy-efficient home 5. Linen closets 6. Kitchen island 7. Open-concept kitchen 8. 2-car garage 9. Large windows 10. HRV-ERV air exchange system
and expanded, including an even larger sample size of Canadian home buyers. The 2016 study surveyed over 23,400 new home owners across eight provinces in Canada to determine key characteristics of today’s new home buyers.
Acquiring Today’s Home Buyer Data from the 2016 study reveals that 52.8% of customers still rely on visiting model homes and sales centres or driving by the community as their “first” resource
Community Amenities
in searching for a new home. Internet searches and
The cycle time involved in land planning, develop-
builders’ websites combine to be a “first” resource for an
ment and home building makes it crucial to understand
additional 28.5% of home shoppers. The data suggests
the needs of today’s home buyers. Designing homes to
that many home shoppers still drive to locations and visit
meet these needs and preferences is one element, but
models or sales centres to determine where they want to
planning and designing communities with that same
live first, rather than researching builders prior to decid-
focus is equally important.
ing on a location.
In the low-rise market, community preferences indi-
The home search then moves from “discovery” to
cate that today’s home buyers are seeking an active
“research” after home shoppers find desired locations.
lifestyle. The findings reveal that the “Top 3” desired
For the research part of the process, 85.0% rank the
community features are:
Internet as important and 88.1% rank a builder’s website
1. Walking and biking trails 2. Parks and recreation centers 3. Overall community landscaping In the mid-rise and high-rise market, the most desired features include: 1. 24-hour security 2. Wireless Internet throughout the building 3. Health club or gym
as important when asked about the “preferred” resources used for “finding” a builder. An increasing trend is apparent since year one of the study for the importance of social media as a resource for finding a builder, with 55.4% of home buyers ranking social media as important. Shortlisting prospective home builders is the initial step for home buyers. As the home buying journey continues, builders must be mindful of the key resources buyers rely on to ultimately select a builder in their “final 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.
The “Top 10 List” across Canada for home features in
and Avid Ratings Canada conducted a first-of-its-kind ing industry. In 2016, this research study was repeated
52.8% of customers still rely on visiting model homes and sales centres or driving by the community as their “first” resource in searching for a new home.
Home Features and Design Preferences
many angles and demand a lot of information. From the
Knowledge Is Power
decision.” Preferred resources used for the final pur-
“The customer experience is the next competitive
chasing decision include pricing, specifications, model
battleground,” according to Jerry Gregoire, former CIO
homes/sales centres and other tools common to the
of Dell and Pepsi. And the best way to deliver a great
home buying process, however, digital information is
customer experience is to deeply know your custom-
increasingly important. A builder’s website again ranks
ers. The CHBA Home Buyer Preference Study contains
high, with 88% of buyers indicating it is an important
important insight on today’s home buyers to help builders
resource in their final purchasing decision. Also in the
better understand today’s home buyers in order to design
digital domain, findings reveal that 85.5% of respon-
products and experiences which yield the highest levels
dents rely on online customer reviews as an important
of customer satisfaction.
resource in their final purchasing decision.
12 Home BUILDER September/October 2016
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COMMON CENTS CONSTRUCTION
Would You Know a Suspicious Transaction If You Saw One? In red-hot housing markets, where housing prices
By Jennifer Fiddian-Green
Historic laxity in suspicious transaction reporting—
often be difficult to spot the difference between legiti-
combined with the complex forms today that real estate
mate home purchases and illegal money looking for a
based money laundering can take—makes it difficult to
place to hide. That’s why the Canada Revenue Agency
identify when it is happening and to understand your
(CRA), along with the Financial Transactions and Reports
business’ inherent risk. That said, watch for the follow-
Analysis Centre of Canada (FINTRAC)—Canada’s anti-
ing red flags:
money laundering (AML) regulator—has launched an
uu Cash payments
investigation into the prevalence of tax evasion, money
uu Purchases by straw buyers or in the name of family
laundering and terrorist financing in Metro Vancouver. According to leaked government documents, the
Historic laxity in suspicious transaction reporting— combined with the complex forms real estatebased money laundering— makes it difficult to define typical risks.
members uu Property seemingly beyond a buyer’s means
purpose of the investigation is to “increase visibility”
uu Quick property turnaround
in the real estate market and “lead to more tax compli-
uu Quick property liquidation
ance.” The CRA will be auditing individuals who seem
uu Complex ownership by corporate entities
to be living beyond their means, as well as exploring
uu Properties purchased, then left vacant
possible instances of house flipping, identifying builders
Look for evidence that funding sources are being mis-
who don’t comply with filing regulations and measuring
represented. This can be difficult as money laundering is
compliance with non-resident filing requirements. These
rarely cut and dry, and many not relate to cash.
issues, combined with generally low levels of “suspicious transaction” reporting by real estate agents, are making
Putting Proper AML Measures In Place
the real estate industry vulnerable to money laundering.
To protect your business and demonstrate AML com-
Even if you’re not based in a large city centre, you
pliance, make sure you know the parties you are dealing
would be wise to review Canada’s Proceeds of Crime
with and have an understanding of the source of their
(Money Laundering) and Terrorist Financing Act (PCMLT-
funds. Ensure you have thorough, well-documented
FA), along with relevant guidelines set out by FINTRAC,
records, including how you’ve ascertained buyer identi-
to ensure you have the proper compliance measures in
ties and looked into possible third-party representation.
place.
You must also record:
Know Your Responsibilities Under PCMLTFA, most real estate developers, brokers and sales representatives should have a sound compli-
uu Large cash transactions and receipts, uu Client information, uu Copies of official corporate records (binding provisions),
ance program in place to assess the risks associated with
uu Copies of suspicious transaction reports,
money laundering and terrorist financing—and should
uu The purpose and intended nature of your business
regularly monitor high-risk areas. Your program should comprise: uu The appointment of a compliance officer, uu The development and application of written compliance policies and procedures, uu The assessment and documentation of risks of money laundering and terrorist financing, and measures to mitigate high risk, uu Implementation and documentation of an ongoing compliance training program, and
Jennifer Fiddian-Green is a partner with Grant Thornton LLP and leads the firm’s national Forensic and Dispute Resolution practice as well as the Anti-Money Laundering Services practice. Jennifer is a qualified investigation and forensic accountant, as well as, an anti-money laundering (AML) specialist.
Identifying Risks
have increased by up to 30% within the last year, it can
relationships, and uu Measures taken to monitor business relationships and information obtained as a result. This documentation will demonstrate the extent of your AML compliance efforts and the strength of your compliance regime should FINTRAC choose to audit it.
Avoid Penalties A strong compliance regime will help you protect your organization, avoid significant financial sanctions, and
uu A documented review of the effectiveness of policies
mitigate criminal and terrorist infiltration of Canada’s
and procedures, training program and risk assess-
housing markets. FINTRAC has imposed $113,000 of
ment.
fines on the real estate sector, and PCMLTFA penalties—
Importantly, you must also foster a culture of compli-
such as failure to report suspicious transactions—can be
ance—one that is adopted, promoted and supported by management and real estate professionals alike. This means sitting down as a team to identify areas of money laundering and terrorist financing risks, make sure proper measures are in place, and outline ways to execute those measures.
14 Home BUILDER September/October 2016
up to $1 million and/or jail time. With these hefty consequences—and the government’s pending investigation—in mind, it’s critical to implement a strong AML compliance regime now.
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EXPERT OPINION
Common Electrical Hazards in Older Homes There’s a certain charm in owning an older home. New developments just can’t emulate the distinct architecture, craftsmanship and unique history that are synonymous with living in one. While these character homes have a unique tale to tell, homeowners are realizing that curb appeal alone won’t protect their wires from today’s electrical demands. By Tim Birnie
The data gathered from Birnie Electric’s awardwinning Electrical Hazard Detection (EHD), inspections, confirms that 99% of older homes inspected harbour electrical defects; 40% of these residences contain dangerous shock hazards. According to the Electrical Safety Foundation International (ESFI) electrical fires account for 51,000 fires
Innovative technology, such as speciality infrared scanners, is used to inspect the electrical panel in older homes.
each year in North America. When the electrical hasn’t
According to the EFSI, homes wired with aluminum are 55 times more likely to pose a fire risk than homes wired with copper if not properly maintained.
been upgraded in 50 years, the odds of a fire risk are
rewired. This is performed by bridging a new copper
greatly increased. Most homeowners are unaware of the
pigtail between existing aluminum wire and the electrical
dangers lurking behind their walls.
device; receptacles and switches should also be replaced
That’s why I’m an advocate for electrical safety educa-
with ones that are suited for aluminum wiring. According
tion. Here are the top six electrical hazards encountered
to the EFSI, homes wired with aluminum are 55 times
when renovating the electrical in older homes:
more likely to pose a fire risk than homes wired with copper if not properly maintained.
Overloaded Circuits: An overloaded circuit draws in more current than the circuit can handle. This occurs when there are too many devices plugged in at once. On a 15amp circuit, the Electrical Safety Authority (ESA), says residents should only draw 12 amps or 80% of the circuit’s rating. Overloaded circuits are particularly common in older homes because they lack the electrical infrastructure, and adequate outlets, to safely power appliances.
redistributing power to another area of the home. Some extension cords are built with multiple outlet ports, which may prompt homeowners to take advantage of the added space. We don’t realize that, while the manufacturer has increased the number of outlets, we are not increasing the amperage of the circuit. We’ve visited homes that
Aged Wiring: Over time, the wires behind our walls degrade. It’s this inevitable wear-and-tear and the excessive heat caused by potentially overloaded circuits that compromise the insulation surrounding the electrical wires, which is particularly common with two-wire knob and tube systems. This is dangerous because, without insulation, you are exposing live wires. Missing or non-functioning GFCIs: GFCI technology was introduced in the 1970s. This system, which pre-
Tim Birnie, P. Eng. Is the President of Birnie Electric, a family owned and operated company, founded in 1967, that provides design/build, electrical contracting and datacomm services. In 2010 Tim Founded, Birnie CurrentSAFE, an Electrical Hazards Detection program, the first of its kind, that detects and prevent electrical hazards hidden behind the walls. Tim can be reached at tbirnie@birnie.com.
Extension Cords: In spite of their rating, extension cords should never be used as a long-term solution for
vents ground faults and shock hazards, is now installed in areas where water may come into contact with electrical devices. The Canadian Electrical Code 26-700 (11) states that receptacles within 1.5m of sinks, bathtubs or shower stalls must be replaced with GFCI receptacles.
had more extension cords than circuits because the homeowner needed to power their electronics in different areas of their house.
Smoke Alarms: About 61% of the homes inspected have inadequate, expired or non-existent smoke alarms. According to the Ontario Association of Fire Chiefs (OAFC), smoke alarms must be installed in every sleeping room, between sleeping rooms, in hallways that serve as sleeping rooms and on every story of the house. Hard-wired smoke detectors must be replaced after 10 years of installation. It’s also recommended that older homes upgrade to battery-operated smoke alarms, because those connected directly to the electrical power supply won’t operate during power outages.
Today, GFCIs come in breaker and receptacle form. Many older homes have non-existent or non-functioning
Older homes have a certain presence that’s made
GFCIs, because this system didn’t exist when the home
them a hot commodity for millennial couples and
was built, or the homeowner failed to replace the recep-
homeowners who don’t want to part with their beloved
tacle every 10 years.
home. It’s important to understand that, while some of us are drawn to the old-school aesthetic of a character
Aluminum Wiring: Contrary to popular belief, homes with aluminum need to be maintained and not
home, its electrical will warrant a twenty-first century facelift.
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Home BUILDER
September/October 2016
15
renovation report
Seniors Mean Business By Gary Sharp
I keep hearing about the seniors market and what an opportunity it presents to both new home builders and to renovators. Is it all just hype?
Nova Scotia, Prince Edward Island and Quebec, respectively. The percentage of seniors is growing over the 2016 to 2036 timeframe making seniors’ business even more important to those provincial economies. So even though
My research says it’s real, and it’s available, but if you don’t understand it and prepare for it,
seniors” years and a smaller Generation X is
Ontario, Quebec, B.C. and Alberta have more
just entering their senior years.
seniors, the Atlantic Provinces and Quebec
you won’t get any of it. This article will take a
Interestingly, the 100+ age group is the fast-
seniors represent a higher proportion of the
close look at the data we have so far. You can
est growing, highlighting our generally longer
population. Note: In Quebec, the total number
judge if this growing demographic represents
life spans. However, even in 2036 the 100+
of seniors is forecast to grow faster than the
an opportunity for you.
age group may only represent a total of 20,000
general population, making the seniors demo-
people across the country.
graphic even more important in that province
Big Picture Data For the purposes of this article “seniors” are everyone over 65 years old. This year we have almost six million seniors in Canada. The seniors group makes up about 17% of Canada’s total population. Estimates are that by 2036 seniors will make up nearly 24% of Canada’s population, which is forecast to be approximately 43 million people. It should be noted that Canada’s population is growing, but the number of seniors is growing
The majority of seniors are living in Ontar-
in the years ahead.
io, followed by Quebec, British Columbia and
Forecasting the seniors’ market is a tricky
Alberta, respectively. The projections do not
business and governments will play a key role
show this changing with time. These four prov-
in whether the numbers are even close to being
Price will be less of a senior’s concern but quality will be demanded.
at an even faster rate. In rough numbers we
correct. For example, pressures on provincial healthcare systems have the potential to impact Charts 2, 3 & 4. Clearly as the percentage of seniors becomes more of the total population, the demand for health services increases while the number of working residents to pay for those services is decreasing. Chart 5 illustrates physician-to-population ratios. The
have six million seniors now and will likely
inces appear to be the locations of choice
College of Family Physicians Canada reports
have ten million in 2036.
(Chart 2). Note that the growth rate for seniors
that physicians are currently working over 46
(Chart 3) shows that Ontario has the highest,
hours per week, of which approximately 25+
again, followed by Quebec, B.C. and Alberta.
of those hours are actually seeing patients. If
The make-up of the seniors is shown in Chart 1. As one might expect, the highest population of seniors is in the youngest age group
Atlantic Canada tells a different story. Chart
the ratios in Chart 4 rise, seniors may choose
(65-69), declining to the oldest age group,
4 shows the percentage of the seniors’ popu-
to move to a province that can offer better
except in year 2036. By 2036, we are forecast
lation compared with the total population of
service. Alternatively, physicians may move to
to see a declining growth rate of the 65-69 age
each province. The province with the highest
a province where the workload is not as high.
group. This signals that the Baby Boom Gen-
percentage of total population being seniors is
eration will have moved through their “early
Newfoundland, followed by New Brunswick,
16 Home BUILDER September/October 2016
As seniors increasingly face life alone, their needs change. This year we have an imbalance 418
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The Evolution of Insulation
RENOVATION REPORT
of renovations completed is high, making the seniors business an important component of the renovation industry.
single-family homes even if that means living
SOURCE: STATISTICS CANADA
SOURCE: STATISTICS CANADA
The message for new home builders is that many seniors are choosing to continue living in alone. There are indications of competition in some parts of the country for larger homes. The Baby Boomer generation appears to be outbidding younger households with families for
Chart 1
these houses. For example, a recent U.S. sur-
Chart 4
SOURCE: STATISTICS CANADA AND CANADIAN MEDICAL ASSOCIATION
vey on Baby Boomers found that 37% of them have plans to move from their current home, and 46% of these “movers” are looking for nicer homes and more space, not less. Another significant finding from this survey was that SOURCE: STATISTICS CANADA
whether upsizing or downsizing, these “mov-
Chart 2
ers” are looking for single-storey homes and more that 69% of Baby Boomers want a yard or a garden.
The seniors group makes up about 17% of Canada’s total population.
Chart 5
Seniors will have an impact on renovators
Chart 3
graphic too. Our research shows that single
SOURCE: STATISTICS CANADA
SOURCE: STATISTICS CANADA
and how they approach this market demosenior women respond best to other females. If renovators don’t have female sales staff today to service this group, they need to make plans to do so if they want this business. It all starts by sending the right person on the sales call. To be successful in the seniors market,
Chart 6
164 in the seniors’ population with 560,000 more
builders and renovators will need to educate
make sense to offer additional services—or
women than men. This imbalance is expected
themselves and provide the service desired by
team up with others who can provide grass
to grow by year 2036 to almost 700,000 more
the seniors to assist them in staying in their
cutting, snow plowing, window and house
women than men in the senior demographic.
homes. New homes that meet their changing
cleaning services while your company supplies
Chart 6 shows that the number of these single
needs will also be in demand. Price will be
the home maintenance, repair and renovation.
seniors will rise the fastest in Ontario, growing
less of a senior’s concern but quality will be
The seniors market is real but to get it may
from 224,000 today to 275,000 in 2036.
demanded.
require a re-thinking of how you are doing
Renovators will also need to understand
business now.
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Adapting for Builders and Renovators
the needs of their market. Look for smaller
So what does this mean for builders and
renovation projects from seniors, but more
renovators? It means that the seniors popu-
projects overall. This will affect how you plan
lation represents a growing market in all of
for jobs, how many staff you need and the types
Canada’s provinces. In Ontario alone, we can
of work they are doing on site. Staff assigned to
expect the number of seniors to grow from 2.3
work with the seniors will need to be carefully
million this year to 4.1 million in 2036. That’s
selected and trained. Understand the sensi-
a 78% increase in Ontario over 20 years. While
tivities of the seniors and ensure that staff is
builder training, new product development as well as
renovations for seniors tend to be a lower
aware of these.
sales and marketing advice to both private industry
dollar value per renovation, the total number
18 Home BUILDER September/October 2016
In both new homes and renovations it may
Gary Sharp became the CHBA’s first Director, Renovator Services in June 2015. Gary is a licensed Professional Engineer in the Province of Ontario. He is responsible for the Canadian Renovators Council and the Builders’ Manual. He has been involved in the construction and renovation industry for over 25 years, providing building services, engineering,
and government.
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Market report
Alberta:
Forecasts, Snapshots and a Fond Farewell It’s no secret Alberta faces challenging times and, even though
Submitted by CHBA – Alberta
CHBA members expect a modest recovery next year, the industry is not expected to approach recent activity levels anytime soon. For the first seven months of the year, total
communicated. Detailed technical reviews are underway that will lead up to a new MGA being
Fort McMurray Fire
approved this fall with regulations to be drafted
starts in Alberta dropped 40% from the same
The fire that swept through Fort McMurray
and implemented in 2017. Overall, the propos-
2015 period to just 12,592 units. ATB Financial
in early May destroyed 2,400 buildings, includ-
als will be positive for industry and Albertans
forecasts we’ll reach 23,600 starts by year
ing many homes. There is still much to be done
and include expanding the mandate of the
end—down sharply from the 2015 total of
but the first signs of progress are emerging,
Alberta Ombudsman to include oversight of
37,500 new single- and multi-family homes.
with builders signing sales agreements and the
municipalities and encourage accountability.
The province’s two biggest markets—Cal-
municipality issuing the first building permits.
gary and Edmonton—are clearly seeing the
It will likely be several years before the work is
impact of low energy prices.
Big changes are coming to Alberta as the
Calgary is down 33% to 4,951
government rolls out programs to address
Housing market intelligence you can count on
Total Housing Starts
units. Edmonton’s drop of almost 50% to 5,702 units is
Climate Change climate change and reduce greenhouse gas
Alberta - All Areas
units
emissions. The new CHBA – Alberta Climate
steeper in percentage terms in
40,000
Leadership Committee is working to become
part because construction in
35,000
the industry resource for the provincial govern-
the provincial capital contin-
30,000
ued to increase last year even
25,000
while Calgary was posting a
20,000
25% decline.
15,000
environmental impacts. A new agency—Ener-
Alberta’s mid-sized mar-
10,000
gy Efficiency Alberta—has been established
kets are also scaling back pro-
5,000 2011
up to 90% in fire-ravaged Fort McMurray. Grande Prairie,
and will also encourage members to become
2012
2013
2014
2015
2016 Jan. June
leaders in energy efficiency and reduction of source: cmhc
0
duction with declines ranging
ment as it relates to any climate change policy Multi-family Single-family
Source: CMHC
to promote and support energy efficiency and community energy systems for homes, businesses and communities. The agency is expected to invest $645 million over 5 years in
with starts up 26% thanks to a bump up in
completed. CHBA – Alberta supported the pro-
funding generated by a new carbon levy that
multi-family home construction, is the only
vincial government’s move to require builders
takes effect in the new year.
market in the province to see gains.
in Fort McMurray to submit a builder declara-
Fond Farewell
On the positive side, declines in both new
tion through the New Home Buyer Registry
home construction and MLS sales have not trig-
before applying for a building permit. The pro-
CEO Jim Rivait is
gered significant price changes. Across Alber-
vincial government also announced it would
leaving after six suc-
ta, the average residential price of $395,087
introduce builder licensing legislation this fall.
cessful years lead-
is down just 0.6% for the year. Calgary prices have gained 1.1% on the year while Edmonton
New Municipal Government Act
ing CHBA – Alberta. Rivait has worked
We’ve been through four Premiers and a
under seven Associ-
The resiliency of resale prices has helped
change in governing parties since the Munici-
ation Presidents and
calm concerns about the long-term prospects
pal Government Act review was first launched.
Boards of Directors.
for the housing market. ATB Financial fore-
CHBA – Alberta was closely involved in consul-
Over that period the
casts starts will rise about 17% in each of the
tations over the years, leading up to province-
capacity to advo-
next two years to 32,100 in 2018.
wide town hall sessions to gather input on
cate on behalf of
prices are flat.
Jim Rivait
Of course, the economy isn’t the only thing
proposed changes. Member engagement tool
industry has grown. The Association remains
on the minds of Alberta’s CHBA members these
kits helped ensure key messages about afford-
on a strong financial footing with professional
days. Here are snapshots of other industry
ability of homes and availability of a range of
staff focused on serving its more than 1,600
issues:
housing options were strongly and effectively
members across the province.
20 Home BUILDER September/October 2016
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Brandon
DUST control
Over the years, techniques and equipment for controlling dust have developed, largely from the German influence of Bosch, but it is with the legislation regarding silica dust that all manufacturers have been jumping forward the last few years with new and better systems because they knew dust control was going to be severely monitored. Every major tool manufacturer is accelerating their dust control product development, sometimes with accessories that can be used with all tools, often with
By Jon Eakes
specific attachments to marry their own tools.
Biting the Dust HEPA (high-efficiency particulate air) filtered
Construction sites are known to be dusty and dust is not only bothersome, but it can also be deadly, dangerous or even explosive. Asbestos dust proved to be so deadly that the material itself has been banned and any existing clean up requires full HAZMAT protocols.
vacuums are the backbone to most dust collection systems, and some work better than others. If the dust goes through poorly sealed joints around the filter, the fancy filter does no good. Basically, dust control techniques combine one or more of the following:
Ban It This was done with asbestos and lead in paints.
Make It Heavier Dust control drywall compound has been around a few years now. When you sand it, the Small fiberglass fibres are an irritant
stone and concrete as was
dust particles cling together and become heavy
to the lungs, but although they are about
done with asbestos. Although it
enough to fall to the floor rather than float all
the same size as asbestos fibres, the lungs
was identified as a health danger in the
over the house.
can actually decompose and clean out
Italian quarries over 300 years ago, it wasn’t
small quantities so a simple dust mask is often
until 1935 that awareness of the problem
sufficient for protection. Fine sawdust is liter-
became a research and educational concern in
Wet sawing ceramic tiles or concrete solves
ally explosive and allowing a shop atmosphere
the United States. Dust control improved, large-
two problems: It cools the blade and traps the
to be full of such dust is against the fire codes,
ly on a voluntary basis and when Occupational
dangerous dust in a water slurry.
requiring dust collection at all machines as
Safety and Health Administration (OSHA) was
Wetting barrels between the tool and the
well as air cleaning devices where needed.
created in 1971 some minimum controls were
vacuum is actually a form of wet entrapment,
Any renovator working in an occupied house
put into place. It took 35 more years, until the
especially useful with drywall dust as the water
knows that dust is his number one customer
spring of 2016, for the US government through
is neither near the water sensitive wall nor
relations issue.
OSHA to establish true worker protection stan-
near the vacuum. The dust is directed down to
Crystalline silica dust from concrete and
dards for crystalline silica dust in the manufac-
the surface of the water where the dust sticks
masonry is a Class I carcinogenic, but it is so
turing and construction environments. Canada
and sinks quickly while the air bounces up and
common that there is no possibility of banning
is certain to follow soon.
moves on towards the vacuum.
22 Home BUILDER September/October 2016
Wet It
424
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DUST control
224
Concrete and masonry demolition sites are one of the primary focuses of the OSHA
enclose the dust spray and use the air dynamics of both blade and vacuum flow to trap it all.
legislation as this toxic dust floats all over a
There has been quite a development of
neighbourhood. Atomized water spray tech-
shrouds added right onto the tool itself, with a
niques are proving to be very effective on such
long hose off to the vacuum. The concrete or
sites. The company DUST BOSS explains that
stone surface grinder is one of the worst silica
this is not just a spray of water; when atom-
dust makers. If you do not have a vacuum
ized spray control systems produce droplets
shroud for this tool, run to the store to find one.
approximately the same size as airborne par-
Some are brand specific, some are universal
ticles, they deliver a greater attraction between
but most tool manufactures now make them.
droplets and dust. Droplet size, water pressure, airflow and velocity are all critical to achieving efficient silica entrapment.
Contain It
In the field of drilling or boring into con-
Containment can be sealing off a room and
crete, particularly on the wall or overhead,
working with personal masks while cleaning
there is a surge in the development of shrouds
the air to collect it—or it could be simply a
that first use the vacuum power to hold the
containment device right at the point of dust
shroud to the wall or ceiling, while the inflow
production directing dust to a vacuum.
of air is through brushes that surround the bit.
Vacuum It
There is no direct contact between the drilling With the cordless revolution, people also
tool and the dust collection system and the
Understand that many shop-vacs can be
want to eliminate that hose, so small battery-
shroud can be easily moved from one position
destroyed by concrete dust, even by the abra-
operated vacuum and shroud attachments are
to another.
sive action of drywall dust. That is why special
being made to attach directly to the tools,
vacuum techniques are used for fine abrasive
particularly SDS (slotted drive system)
dusts, such as:
hammer drills. Most of these are spe-
uu A motor cooling air stream that is separate
cific to one brand; some are univer-
from the dust path; uu Water entrapment to pull the dust out of the air stream; uu Using HEPA filter systems both to trap and
Extract It
sally applicable. Unfortunately, the totally compact solution is getting
The best example of extrac-
heavier and heavier with two motors
tion has come with the use of epoxy
and two batteries plus a dust compartment.
anchors for bolts and rods. To properly
collect extremely fine dust and at the same
work, the hole needs to be dust free before
time protect the motor.
injecting the epoxy—but getting a dusty hole
Although HEPA are the best, a regular vac
clean is really difficult and often dusty itself
with a paper bag stops far more of the fine dry-
if you use compressed air. Long hollow shaft
wall dust than regular filters. Soon we should
drills that have a vacuum draw through the
be seeing equipment certified for working with
bit just above the cutting head and a vac hose
Silica dust.
connection just before the SDS chuck connec-
A vacuum drawing right near the genera-
tion, reduce friction (by taking away the dust),
tion of the dust can certainly help, but effi-
reduce bit heat by the air flow and leave no dust
ciencies are multiplied when shrouds actually
at all behind. Bits last longer and epoxy can be injected immediately. Whether we like it or not, cleaning up our act is now part of the job and every tool manufacturer is ramping up their dust control options.
Mid-sized vacuums have been developed into backpacks; giving more vacuum power with the weight on your back and not your arms yet totally cordless and portable.
24 Home BUILDER September/October 2016
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A conference like no other... in a place like nowhere else
www.chba.ca/conference 74th CHBA NATIONAL CONFERENCE ST. JOHN’S, NEWFOUNDLAND AND LABRADOR
CHBA President’s Message
What We’re Telling Government With the summer drawing to a close, I wanted to
Bob Finnegan President, CHBA
Homeownership is at the core of a strong middle class, and ensuring Canadians can continue to become homeowners is critically important.
In part, this situation reflects a general trend in Cana-
been doing over the last few months, as a flurry of fed-
dian cities toward higher density residential develop-
eral consultations in key policy areas of concern to our
ment where less ground-oriented construction is per-
industry moved ahead.
mitted, and where development restrictions and slow
It is becoming increasingly clear that affordability,
approvals processes translate to high land values that, in
market stability and the long-term financial security of
turn, necessitate higher densities to make development
Canadians are major concerns for the government, as
commercially viable.
they are of our industry. This is reassuring.
But it also exposes a growing divergence between
As the International Monetary Fund has observed,
what Canadian home buyers say they want, and what
Canadian housing markets are complex, and fall general-
the residential building industry is allowed to construct.
ly into one of three categories: slow markets that are see-
Today, over 85% of families live in ground-oriented homes
ing falling demand and soft prices, “steady-as-she-goes”
(single-detached, semi-detached, townhomes, stacked
markets seeing more balanced conditions and generally
townhomes, etc.) and the vast majority of those working
stable prices, and two major urban markets— the Greater
to become homeowners want this type of housing.
Toronto Area (GTA) and the Greater Vancouver Region
Yet, in the GTA and GVR, such homes are in increas-
(GVR)—where demand and prices have remained very
ingly short supply. Even on a national basis, just over half
strong for some time.
of all new homes built are ground-oriented.
Given these complexities, the potential risks from
The law of supply and demand still works, and this is
pre-emptive government actions to “cool” demand in
a principle factor in ground-oriented house price escala-
Toronto and Vancouver are very high. With interest rate
tion in both the GTA and GVR. If we don’t address this
hikes essentially “off the table” given Canada’s lacklus-
supply imbalance, it’s hard to see things changing.
ter economic performance, the only levers available at the federal level would involve further tightening of mortgage rules or targeted taxes. This would impact all markets, and disproportionately affect first-time home buyers, who are more reliant on the availability of insured mortgages.
Taxation of New Homes New home prices reflect land, business operation and construction costs, plus taxes. The effective level of taxation on new homes, comprised of all government-imposed costs, has increased
Homeownership is at the core of a strong middle
dramatically in many communities. These costs are par-
class, and ensuring Canadians can continue to become
ticularly acute in many GTA communities, comprising at
homeowners is critically important, to young people
times more than 20% of the selling price of a new home.
and families working to attain financial security, to our
As CHBA has always made clear, all such taxes,
communities, and to Canada’s long-term economic well
whether termed “development charges,” “lot levies,”
being.
“amenity fees,” or “cash in lieu,” end up in the price con-
CHBA’s message to the federal government has been
CHBA EXECUTIVE Committee
regions.
provide members with an update on what CHBA has
sumers pay for a new home.
very clear: There are many important factors behind
Coupled with restrictive development regimes that
the strong market conditions in the GTA and GVR and
cause land costs to escalate, new home taxes have a
these need to be understood. Actions aimed at address-
considerable impact on affordability. These taxes have
ing just one factor—foreign real estate investment, for
rapidly outpaced the actual cost of building a home in
example—will not address other important issues, and
recent years, and the resulting impacts on affordability
could have very negative effects in other markets, and
are not insignificant.
among those working hard to enter the middle-class.
Both the supply problem and high new home taxes
President: Bob Finnigan, Toronto, ON Past President: Jane Morgan, St. John’s, NL First Vice-President: Eric DenOuden, Belleville, ON Second Vice-Presidents: Nathan Stone, Langley, BC Stefanie Coleman-Dias, St. Thomas, ON Treasurer: Blake Hudema, Burnaby, BC Presidential Appointee: Errol Fisher, Saskatoon, SK Chief Executive Officer: Kevin Lee, Ottawa, ON
CHBA’s view is that a shortfall in ground-oriented
result from government policies and decisions. We don’t
housing supply and high new home taxes fuel affordabil-
need to look to “off-shore buyers” to understand that
ity problems in the GTA and GVR, and to varying degrees,
these policies are impacting the price of homes. What we
in many other urban area across Canada.
need is governments to address these problems, which
CHBA Contact: David Foster National Office, Ottawa, ON
this segment of the market in both the GTA and GVR,
Supply and Demand Imbalances For some time, CHBA has been alarmed that many Canadian urban markets, and especially the GTA and GRV, are experiencing a chronic undersupply of familyfriendly, ground-oriented homes. This is a prime factor in ongoing price escalation in and is also contributing to higher prices in many other
26 Home BUILDER September/October 2016
could go a long way to ensuring affordability for the next generation of home buyers.
CHBA CEO’s Update
Moving Ahead As I noted in my last member update, the summer of
We’ve also made some great progress on a number
2016 was anything but “typical” in Ottawa, and at CHBA.
other key projects, including the launch of CHBA’s new
I want to touch on a couple of areas where we’ve been
website—a key communications vehicle for issues such
particularly active.
as the above, plus a new offering in terms of member
As President Bob Finnigan noted in his report, we’ve
Kevin Lee CEO, CHBA
benefits.
been heavily engaged in a number of federal consulta-
The website serves as a milestone in CHBA’s ongo-
tions, on a host of issues that will directly and indirectly
ing “digitization” process, which is aimed at delivering
impact our industry and your customers in the months
more and better services to members, and ensuring your
and years ahead.
Association is the go-to source of housing information
There is considerable “overlap” in a number of these federal initiatives, with housing taking centre stage in
for home buyers and those planning a home renovation. The new website is fully integrated with CHBA’s membership system, allowing the delivery of a host of new
many cases. Of particular note are the development of a “National
Member-only features and services.
Housing Strategy,” a separate initiative by the Finance
Over the next year, we’ll be focused on rolling-out
Minister to work with provincial and municipal leaders
additional features and services, and we’ll keep members
to address high home prices in Toronto and Vancouver;
informed as this happens.
and the government’s concurrent directive to CMHC to
will allow include:
off” in these two cities.
Providing more and better information to consumers
CHBA has been providing the fed-
looking for a home builder, renovator, trade contrac-
eral government with data and insight
tor or other housing service provider who is a CHBA
relevant to all three of these initiatives.
member. Historically, the largest portion of our web
Our message, as Bob says, is to caution
traffic is made up of consumers looking for a CHBA
federal policy-makers against assum-
member firm, and we will be providing members with
ing that protecting affordability can be
tools to better promote what they offer.
achieved through simplistic actions
Giving members expanded and easier access to criti-
aimed at making it harder for young
cal information and business intelligence, to help
Canadians and families to own a home.
you run your companies effectively. This will include
High home prices in Toronto and Van-
online publications and webinars on key business
couver reflect a perfect “storm” resulting
New CHBA home page
A few of the enhancements this new digital platform
develop specific options to “cool things
topics, all free to members.
from tight ground-oriented home sup-
More frequent information on the work of your Asso-
ply, high new home taxes, restrictive
ciation, and what we’re accomplishing at all three
development and approvals policies,
levels across the country.
lack of infrastructure (particularly tran-
Over the summer, CHBA sent member login infor-
sit), and high levels of in-migration to
mation to all member companies, based on the contact
these economically dynamic cities.
information supplied by local HBAs. If you have not
Low interest rates and foreign buyers also play a role,
received this, let us know so we can add you to our
but largely exacerbate a problem that is already very
member database. Simply send your company name,
significant.
your name and your email address to communications@
A thorough and thoughtful analysis of the many fac-
chba.ca.
tors fueling demand and prices in Toronto and Vancouver
Also let us know about any other staff in your com-
has some potential to move governments to address the
pany who would also benefit from members-only web-
broader underlying issues that are hampering affordabil-
site access. Whether they are involved in sales and mar-
ity right across the country.
keting, financial management, design or construction,
CHBA is committed to providing governments with
CHBA produces specialize business information that can
the information needed for just this sort of analysis, and
help them keep up-to-date on the latest developments.
doing so has pre-occupied the national office staff over
And it’s all free to member firms and their entire staff.
the last number of months. I am very pleased to say that we’ve seen the federal
Just send their name and email addresses, plus your company name, to communications@chba.ca.
government assume a more cautious tone in relation to housing market interventions—a welcome indication that CHBA’s concerns about the risks to market stability from further mortgage tightening, or other measures, are being heard and taken seriously. We’ll be continuing this important work going forward.
Home BUILDER
September/October 2016
27
TOOLTalk
lighter and less expensive than the heavy duty tools from DeWalt and Milwaukee. It doesn’t have instant nailing as you get with Milwaukee or pneumatic tools, but the windup to strike is quick and the balance allows for far easier precision of nail placement. For the renovator who only uses a brad nailer occasionally, this is an excellent and solid tool.
Saw Coatings to Increase Battery Run Time All cordless power tool companies are working to improve their cutting accessories and augment battery run-time by cutting more efficiently. It is really difficult to compare new blades between companies because they all claim such magnificent improvement, mostly with cutting thinner kerfs or keeping the teeth sharp longer by using new metals and new cutting angles. But as the kerfs get thinner, there is more friction with the body of the blades.
From the Biggest to the Smallest of New Tools
Milwaukee’s new Hole Dozer hole saws have a unique baked-on paint that will resist friction longer than most other paints. New tooth design and tougher metal allow them to offer the first hole saw that has a no-question replacement guarantee if you manage to break
When you get more power, sometimes you
coming in at just 3.3 lbs, including the 2.0
need to stop it faster. Right angle grinders can
Ah battery. This barrel grip saw is specifically
bite and bind so when DeWalt claims three
designed for dexterity with its 9.4-inch length
times the power of an 18volt tool with their
while maintaining a 2-inch cut capacity in
new 60v FlexVolt grinder, the new E-Clutch
wood. The no-mar plastic overshoe and coun-
with a two-second stopping action is going to
terbalanced low-vibration plunge mechanism
be appreciated.
make it ideal for finish carpenters, cabinetmak-
Bosch is known for their muscle, but they
a tooth.
ers and kitchen installers.
are the ones who have built the lightest cord-
Porter-Cable is finding its niche with their
less professional duty jig saw, the JS120 – 12v—
new professional duty 18 GA Brad Nailer that is
Freud markets their red Perma-SHIELD coating that not only avoids residue build-up and friction but, unlike most paints that trap heat, the Perma-SHIELD coating can help the metal distribute and carry heat away from the teeth.
28 Home BUILDER September/October 2016
Typical of the field is this DeWalt large area light, which can be run on batteries or corded power and incorporates a battery charger. It is dimmable, programmable and remotely controlled by your smart phone. Giving off up to 7,000 lumens, the physical design allows for stacking lights on top of each other for storage. This is truly part of the strategy to “own the jobsite by battery platforms.”
Even The Water Pump Has Gone Cordless Whether emptying a hot water tank or a toilet, the Milwaukee M18 cordless self-priming
The Self-Cleaning Tape What could possibly be really new in long
450-gallons-per-hour transfer pump can be
floor plans with direct site measurements. The
useful. Eliminating the extension cord with
“GLM Transfer Software” for the 100 model
standard Milwaukee M18 tool batteries can
also connects to a computer via a USB con-
be critical around water. The closed battery
nector for even expanded project management
tapes? Nylon tapes stretch a lot but are much
interfacing.
more convenient than steel tapes. How about
Start with all the basic types of measure-
actually mixing nylon and steel—giving a tape
ment that any good electronic measuring
with 50% less stretch but the flexibility of nylon!
device takes today: lengths, heights, maxi-
And to make it even better, the Milwaukee
mum, minimum, surfaces, volumes, angles,
48-22-5230 even saves your gloves as they
hidden lengths and incremental steps. Blue-
built the industry’s first debris wiper into the
tooth connect the device to your phone or
foot, wiping the tape clean as you reel it back in.
tablet.
Tool Companies Are Now Lighting Companies
your phone or tablet can remotely operate the
For difficult or one-man measurements, GLM, letting you stand at the target, not the
All the tool companies have gotten into
source. Start from a floor plan, a photo of a floor
job site LED lighting products, most running
plan or a site photo and then draw measure-
on their proprietary battery packs. From flash-
ment lines; the GLM will label them with real
lights to floodlights to bucket lights—some
direct measurements. The floor plan app will
with Bluetooth connections—allowing pro-
compartment is water resistant, although not
adjust your drawing to the real dimensions. A
gramming and control from your smart phone.
submersible. An auto-off after the pump runs
complete measurement list is created and each
dry for one minute allows you to set it up and
measurement can be labeled. The photos and
go do something else without wasting the bat-
measurements instantly become a pdf docu-
tery or doing damage to the pump. It is made
ment or share just the dimensioned photos.
with standard garden hose connections as on
Lists can be exported spreadsheet-compatible.
the drain spout of hot water tanks. It is not designed to handle either water with debris in it or any liquid fuels.
Marrying Laser Measurement and Information Transfer
This is a good measuring device that connects with your existing technology to record
L TOOK TA L L TOOK TA L
and share site information without delays or extra costs.
Bosch has moved a step ahead of the crowd with their Bluetooth GLM 50 C (50 meter range) and GLM 100 C (100 meter range) professional
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
laser measurement tools when you connect them with three free apps and free instant sharing via e-mail and Dropbox directly. Via Bluetooth on your smart phone or tablet, the “GLM Measure & Document” app records measurements and annotates photos while the “GLM Floor Plan” app creates dynamic
Home BUILDER
September/October 2016
29
renovation
Albertans Boost Renovation Spending to $3.1 Billion EDMONTON — Despite lingering
The figures show Albertans continue
weakness in the Alberta economy, spend-
to see spending on home improvements
ing on residential renovations continues
as a good investment. Increased renova-
to improve in 2016.
tion spending also helps support Alberta’s
According to Statistics Canada’s
economy and create jobs at a time when
residential investment data, renovation
many other sectors are struggling.
spending in the second quarter of 2016
Spending on energy efficiency upgrades
increased year-over-year by 4.7% to $1.56
for Alberta’s aging housing stock may get
billion. This was in contrast to a 17.4%
a boost in 2017 when new carbon taxes
decrease in the total value of investment
take effect. Almost two-thirds of Alberta
in residential construction in Alberta dur-
private dwelling are more than 20 years.
ing the second quarter.
The Alberta government has pledged $645
So far this year, investment on residen-
million for Energy Efficiency Alberta, a
tial renovation has increased by 3.8% over the first six months of 2015
new provincial agency that will support energy efficiency programs and
to $3.1 billion. During 2015, total spending on residential renovations
services for homes and businesses.
increased by just over 1% compared with all of 2014 to almost $6 billion.
Submitted by Richard Goatcher, Economic Analyst, CHBA – Alberta.
TD: More than Half of Canadians Considering Renovating
DeVrye Renovations Selects Home BUILDER Online
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TORONTO — A recent survey by TD found that 56% of Canadian
DeVrye Renovations found the 7 best online magazines for home
homeowners and those thinking of buying their first home say they have
improvement inspiration. 1 We’re pleased to report that HomeBuilder
considered, or would consider, renovating their current home or fixer-
Canada.com made the list! Find it and other interesting lists on the blog
upper, rather than buying a move-in ready home.
tab at www.devrye.com.
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30 Home BUILDER September/October 2016
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IndustryNews
Canada Green Building Council Launches Energy Benchmarking Training
CBSA Initiates Anti-Dumping Investigation into Imported Gypsum Board
OTTAWA — This September, the Canada Green Building Council
OTTAWA — The Canada Border Services Agency (CBSA) has initi-
(CaGBC) is launching new training on energy benchmarking strategies
ated an anti-dumping investigation into gypsum board originating in or
and regulation for both private and public sector stakeholders.
exported from the United States into Canada. The complaint was filed by
Titled Introduction to Energy Benchmarking, and Understanding
CertainTeed Gypsum Canada Inc. (GCI) of Mississauga, Ont., alleging
Ontario’s Mandatory Energy Benchmarking for Large Buildings, these
that gypsum board was being sold at unfair prices into the provinces of
courses will introduce the general processes for accurate data collec-
British Columbia, Alberta, Saskatchewan, and Manitoba, as well as the
tion, show participants how to create a building profile and successfully
Yukon and Northwest Territories.
use ENERGY STAR Portfolio Manager, and discuss Ontario’s upcoming
A form of international price discrimination, dumping occurs when
Energy and Water Reporting and Benchmarking (EWRB) regulation.
the price of the product sold in the importing country is less than the price
They were developed in consultation with the Illinois Chapter of the U.S.
for the same product in the exporting country’s market.
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Green Building Council (USGBC), and were modeled after the successful training they implemented in support of the City of Chicago’s Energy Benchmarking Ordinance. To find out more or register, visit www.cagbc.org/ebcourses.
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How Would You Change Housing in Canada?
NKBA Study: Millennials Outspend Others on Kitchen and Bath Remodels HACKETTSTOWN — Millennials outspend other age groups when remodelling their kitchens and bathrooms, according to new research from the National Kitchen & Bath Association (NKBA). The research
OTTAWA — It’s an exciting time for the National Housing Strat-
found that millennials spend an average of 17.7% more than the $19,155
egy consultations. The Canada Mortgage and Housing/Government of
typically invested in a kitchen remodel, and 42.3% more than the $11,364
Canada initiative has just launched a collaboration tool on Let’s Talk
normally allocated to remodel a bathroom.
Housing that lets you share your ideas and collaborate with others on
The NKBA research study, Understanding Millennial Kitchen &
the future of housing in Canada. If you’ve been sitting on the next great
Bath Consumers, compares the
housing idea, now’s the time to act. Make your voice heard by sharing
behaviour and attitudes of those
your ideas, taking this brief survey or submitting your views in writing before October 21, 2016. Your ideas will help shape the future of housing in Canada. Sign up at letstalkhousing.ca.
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CALENDAR Do you have an event you want posted on our new Online Calendar? E-mail your listing to editor@work4.ca
September 22-25
A d v e r t ise rs in Th is Issue Advertiser
Page
Phone
Web site
Interior Design Show (IDS) West Vancouver, BC www.idswest.com
September 29-October 2
CertainTeed Gypsum Canada, Inc. . . . . . . 3 . . . 800-233-8990 . . . www.certainTeed.com/Gypsum
Fall Home Show BILD/Renomark Toronto, ON www.fallhomeshow.com
CHBA - 2017 Conference . . . . . . . . . . . .25 . . . 613-230-3060 . . . www.chba.ca
September 29-October 2
Benjamin Moore . . . . . . . . . . . . . . . . . . . . 4 . . . 416-766-1173 . . . www.insl-x.ca Canadian Western Bank . . . . . . . . . . . . . 30 . . . 604-443-5118 . . . www.theworkingbank.ca
Icynene Inc. . . . . . . . . . . . . . . . . . . . . . . . 17 . . . 800-363-4040 . . . www.icynene.com
Ottawa Fall Home Show Greater Ottawa HBA Ottawa, ON www.ottawafallhomeshow.com
IKO Industries Ltd. . . . . . . . . . . . . . . . . . . . 2 . . . 855-456-7663 . . . www.roofingelevated.com
October 1
Federated Insurance . . . . . . . . . . . . . . . . 23 . . . 844-628-6800 . . . chba.federated.ca Fortis BC Energ . . . . . . . . . . . . . . . . . . . . 19 . . . 866-884-8833 . . . www.fortisbc.com
JELD-WEN of Canada . . . . . . . . . . . . . . . BC . . . 204-510-4745 . . . www.jeld-wen.ca LP CanExel . . . . . . . . . . . . . . . . . . . . . . . 19 . . . 888-820-0325 . . . www.canexel.ca Nudura Corporation . . . . . . . . . . . . . . . . . .8 . . . 866-468-6299 . . . www.nudura.com Owens Corning Canada LP . . . . . . . . 11, 30 . . . 800-438-7465 . . . www.owenscorning.ca Robinson Lighting & Bath Centre . . . . . . 21 . . . 604-879-6847 . . . www.robinsonlightingandbath.com Simpson Strong-Tie Canada . . . . . . . . . . . 7 . . . 800-999-5099 . . . www.strongtie.com/timberhex-hdg Superior Walls of America Ltd. . . . . . . . . 13 . . . 800-452-9255 . . . www.SuperiorWalls.ca
ages 18-37 to other generations when planning kitchen and bath remodelling projects. The study, conducted by The Farnsworth Group, also found that more than half of the millennial generation has purchased a home in the last five years. Other findings include: When purchasing kitchen and bathroom products, younger generations value Internet searches and information from friends and family members more than other age groups. Customer reviews are more
Parade of Homes CHBA Northern BC Prince George, BC www.chbanorthernbc.ca
important to millennials when
October 2
ets. In the bathroom, the cost
Reno Tour 2016 Greater Ottawa HBA Ottawa, ON www.gohba.ca
selecting kitchen products compared to other age brackof a product is paramount for millennial buyers when compared to other generational groups.
Home BUILDER
September/October 2016
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2016
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