Winter 2017 | HomeBuilder Magazine Canada

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VOL.30 NO. 4

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E

Winter 2017

WINTER WOOD NOTCHES NEW HIGHS Person of the year: Canada’s home builder Market Profile: Atlantic Canada Renovators speak Making her mark in Calgary renovations Latest new trends Amazing technology

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CONTENTS

Columns

Publisher’s Note

9 Economics 10 Customer Satisfaction 11 Common Cents Construction 26 Tool Talk

Welcome to 2018 and the 31st year of publishing for Home BUILDER Magazine, the longest published residential construction

Departments 6

News 8 Association 28 Renovation 30 Calendar 30 Industry News 31 Advertisers Index

magazine in Canada.

Today, as for more than three

Cover Developer PortLiving is building Canada’s tallest wood condo tower in Vancouver. Page 16 Photo courtesy of PortLiving.

decades, our main objective is to Nachmi Artzy Publisher

present our loyal readers with the kind of information that they can

use right now to better their business, sharpen their skills, gain an edge in a competitive market and increase their profits.

We are not here to show you large images of advertiser’s

12

RENOVATOR PROFILE Shannon Lenstra of Kon-Strux Developments is making her mark in Calgary.

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products or tell you things you already know. Our job in every issue is to deliver useful, timely and well-researched information; expert opinions; and hands-on advice from builders and renovators like you. Our regular Tool Talk and Common Cents features, for example, are a must read for any contractor or builder.

Your time is valuable and we won’t waste it. When you read Home BUILDER Magazine you learn something that will help you work smarter and better. Maybe a new trend influencing your business. A technical solution to a problem you have, a

PERSON OF THE YEAR

marketing idea, a key piece advice from peers, or a new product

Canada’s home builder bucked headwinds to deliver 200,000 homes and thousands of jobs in 2017.

that you can use right now.

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RENOVATORS SPEAK Six contractors share their view from the front line of the renovation industry.

14

MARKET REPORT: Atlantic Canada

of interest. Or perhaps an advertisement for a product or service Home BUILDER remains focused on the real residential construction heroes from coast to coast: the builders and renovators, men and women, who need focused information that benefits their livelihood. We are here to listen to you and voice your opinions and concerns.

Home BUIDER is not only a print product any longer, either.

We now also connect with readers with our online Newsletter

Some had suggested a downturn in home building. Looks like they were wrong.

and lively, updated social media platforms.

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to remain robust. Forecasts are for more than 200,000 housing

TOP TRENDS Nesting windows, fast solar and invisible TVs among features for your next renovation contract.

24

TECHNOLOGY

Looking forward, we expect Canada’s residential industry starts and renovation spending in excess of $74 billion in 2018, representing among the largest economic engines and job generators in Canada. It is the men and women on the front line of this industry that will, and remain, Home BUILDER’s audience.

We wish all of you a profitable year and we hope that Home BUILDER helps you achieve it.

From virtual reality to switch-on wearables, high-tech is making contractors smarter and safer.

Home BUILDER Magazine is published by Work-4 Projects Ltd. four times a year. Editorial/Advertising: 4819 St. Charles Boulevard, Pierrefonds, Quebec, Canada, H9H 3C7. Tel.: 514-620-2200, E-mail: homebuilder@work4.ca.

Entire contents copyright December 2017 by Work-4 Projects Ltd. Reprints only by written permission. Opinions expressed are those of the authors or persons quoted and not necessarily those of the publisher or any other organization. The occasional appearance of photographs depicting safety violation does not represent an endorsement of the practice by the publisher or any other organization. Subscription rates in Canada: $36* a year, $60* for two years, $80* for three years. U.S. and foreign subscriptions payable in U.S. funds only. ISSN No. 0840-4348. Legal deposit — The National Library of Canada and Bibliothèque et Archives Nationales du Québec, 2007. Canada Post Permit #0295647. *Plus applicable taxes. GST/HST registration #R105741383 • Date of mailing: December 2017

Nachmi Artzy Publisher 514-620-2200 | pub@work4.ca

Home BUILDER

Winter 2017

5

NEWS

Boomers Plan Home Equity Transfer areas plan to, or have already given, a living inheritance with the specific goal of helping relatives to buy residential real estate. A similar proportion plan on giving such a gift as part of their will.

Of living inheritance givers, 12 per cent have already transferred funds to beneficiaries. Almost half plan to do so within the next five years.

Calgary boomers are the most likely to have already transferred, or to have plans to transfer funds to help a relative buy a home, at 41 per cent; 36 per cent of Vancouver boomers, 35 per cent of those in Toronto and 27 per cent of those in Montreal intend to help family members purchase residential real estate.

The median of a living inheritance transfer for real estate purchases is in the $25,000 to $49,999 range. Most recipients plan to buy a More than a third of Canada’s baby boomer homeowners plan to

first home.

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transfer home equity proceeds to help relatives buy a home, according to unique study by the Mustel Group with Sotheby’s International Realty Canada.

Mortgage Change May Stress Market

The 2017 Generational Trends Report: Canada’s Intergenerational

The January 1 changes to Canada’s mortgage industry could remove

Wealth Transfer & Next Generation Home Buyers is the first report to

up to 50,000 homebuyers from the market this year, according to Mort-

analyze the transfer of “living inheritances”—gifts of funds while still

gage Professionals Canada (MPC).

In a report prepared by its chief economist Will Dunning, the MPC

living—to family members to buy a home.

According to Jami Koehl, Principal of Mustel Group, “Baby boomers

estimates that 18 per cent of buyers will fail the new mortgage stress

make up close to 30 per cent of Canada’s population and have had a

test. This test requires that all homebuyers qualify for a mortgage rate

significant impact on the housing market. This influential cohort is spe-

at least 2 per cent higher than what is available in the market. The rul-

cifically making a mark on a new generation of homebuyers.”

ing applies to federally regulated lending institutions, which includes all

Highlights of the study include:

the major banks.

One-third of baby boomers across Canada’s four major metropolitan

Immigrants Require Different Homes Immigrants to Canada often have different housing needs than other Canadians, according to Jayman Built of Calgary, which has been helping immigrants buy new homes for two decades.

Nishi Saraswat, a sales manager for Jayman Built, said most immigrants require bigger and a more specifically designed home. She said many immigrant families have parents living with them, and would like a main-floor bedroom for them.

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Vol. 30 No. 4 Winter 2017

The MCP said that about 91 per cent of new mortgage applicants will be subject to the stress test, since it covers both high-risk and low-risk loans. High-risk loans are those with a down payment of less than 20

Publisher Nachmi Artzy pub@work4.ca Contributors: Frank O’Brien Jon Eakes Peter Norman Tim Bailey Bo Mocherniak Dermot Mack

Production Manager Kelvin Chan production@ homebuildercanada.com Sales Coordinator Polly Ma coordinator@work4.ca Accounting Patricia Fleurent accounting@work4.ca Circulation Manager mail@work4.ca

Editor Nachmi Artzy editor@work4.ca

per cent that require mortgage insurance.

Published by Work-4 Projects Ltd.

per cent (or about $31,000) to pass the stress test. Dunning estimated.

Advertising/Editorial: 4819 St. Charles Blvd.

Pierrefonds, Quebec Canada, H9H 3C7 Phone: 514-620-2200 www.homebuildercanada.com

The typical homebuyer will have to reduce their target price by 6.8 About 100,000 potential homebuyers are expected to fail the stress test, but half of these will acquire financing through alternative lenders, such as credit unions or private lenders.

From 40,000 to 50,000 potential homebuyers will be unable to pass the stress test or acquire non-conventional funding and will exit the home sales market, MCP estimated.

6

Home BUILDER Winter 2017

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TECHNOLOGY®

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association

Ontario Builders Question New Zoning Plan The Ontario government has

doesn’t add to the cost of market units, he noted.

announced details of their inclu-

“The proposed provincial framework is a partnership model, but we

sionary zoning framework that

are disappointed that the framework falls short of an equal 50/50 sharing

would give municipalities the power

of the costs to build these government-mandated units,” Vaccaro said. C

to require inclusion of governmentmandated affordable housing units in new home developments.

“Creating more government-

“We are disappointed.”

Joe Vaccaro, OHBA

Saint John Endorses Mid-Level Wood Buildings

mandated affordable housing units

Saint John is the first city in Atlan-

should not come at the expense of

tic Canada to allow five- to six-

housing affordability. The Ontario

storey wood buildings to be con-

Home Builders’ Association (OHBA)

structed, reports the Canadian Wood

has been supportive of a partner-

Council (CWC).

ship model where the costs of delivering mandated units are shared via

“Mid-rise code changes are the

a partnership between government and the industry,” said OHBA CEO

result of a lengthy, carefully con-

Joe Vaccaro. “The proposed framework announced by the province

sidered code process that included

recognizes that in order for our industry to come to the table and build

participation from expert stake-

affordable units, there has to be a package of offsets and incentives, such

holders and consultants,” explained

as waiving or reducing development charges, parking requirements or

Michael Giroux, CWC president.

cash-in-lieu of parkland fees for inclusionary zoning to be successful.”

“The CWC applauds the City of Saint John’s mid-rise decision, which

Successful inclusionary programs in other North American cities provide planning and financial support to ensure affordable housing

will create access to safe, strong and sophisticated building solutions.”

To date, 80 wood mid-rise projects have been completed, and another 75 are under construction in Canada, mostly in B.C. and Ontario.

Six-storey wood buildings provide a lower cost construction option, while promoting sustainable construction and local labour in New Brunswick, added Patrick Crabbe, project coordinator for Atlantic

HomeBuilderCanada.com

Wood Works.

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Wilkes Named BILD GTA President D avid

W ilkes

has

been

appointed president and CEO of the 1,450-member ‘Building Industry and Land Development

Home BUILDER Magazine e-Newsletter

Association (BILD) of Greater Toronto after what BILD calls “an

You’ve been asking for an industry-specific newsletter

extensive search.”

geared to residential home builders and renovators—and

Wilkes was the former senior

we launched our inaugural issue in June 2017!

To receive Home BUILDER Magazine’s bi-weekly e-newsletter, all you have to do is subscribe. (Don’t worry, you can opt out at any time, and we promise that we won’t sell your email

vice-president of government David Wilkes

relations at the Retail Council of Canada.

“This is an exciting time for BILD and I am delighted to be taking on

to anyone else). Visit:

the role of president and CEO,” said Wilkes. “I’m ready for the challenge

www.HomeBuilderCanada.com/sub-newsletter.htm or

of leading an industry that employs over 197,000 people and brings $30

scan QR code to subscribe and receive:

billion in investment value to the Greater Toronto Area.”

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An industry-specific e-newsletter delivers timely information about the residential housing market, including: C Latest news C New products and services C Meaningful information

CHBA Readies National Conference The Canadian Home Builders’ Association is getting ready for its 75th National Conference, which will be held March 21 - 23, 2018, at the Fairmont Empress Hotel in Victoria, B.C. Pre-conference meetings of the CHBA will be conducted March 19 - 21. Registration is now open for the Conference. For information, visit chba.ca.

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Home BUILDER Winter 2017

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economics

Twenty-Seventeen Was a Great Year for Housing, Expect the Same in 2018

By Peter Norman

2017 was a very remarkable year for new housing

Enough of them across the market means we expect

construction right across Canada (as predicted in this col-

somewhat flatter prices through a period of mild interest

umn one year ago!). In addition to the strongest housing

rate hikes rather than the sort of frothy pattern seen in

starts performance in a decade, there was also remark-

recent quarters.

able regional convergence, with every region showing

Supply constraints continue to be among the key risks

gains (in fact every province except one, Newfoundland

to the housing market. Supply problems, particularly

and Labrador, advanced in 2017). Some 219,000 units

among single-family development land, played a signifi-

were started in 2017, up 11 per cent from 2016 and some

cant role in the turbulence in certain urban markets in

24,000 units higher than the annual average over the

the past two years and still threatens to pose problems

past ten years.

in 2018. Many urban markets across the country have

The good news is that that many of the factors fueling

faced a certain shortage of approved development land,

this growth will continue to provide a boost to housing

as planning policies coast to coast attempt to densify

demand in 2018. But this year will not be without its

through restrictive policies.

challenges.

Residential renovation activity will also be fueled by many of the same factors such as employment and income growth.

The most acute examples have been Vancouver and

2017 turned out to be a remarkably strong year for

Toronto over the past two years that each had price peak

job gains right the way across the country. Over 422,000

events and periods of turbulence related to supply short-

net new jobs were created within the year—a 15 year

ages. But other markets such as Calgary and Regina also

record. The largest gains were found in Quebec, B.C. and

continue to have underlying problems with adequate

Ontario. Alberta also saw significant job gains as part of

single-family approvals, albeit somewhat masked by the

an important bounce back after a recession that lasted

recent recessions in those markets. In general, 2018 is

for two years.

expected to be a strong year for housing demand based

Job growth, of course, is critical for housing demand

on income, employment and migration growth—expect

as a new job boosts a household’s income and its con-

to see more frothy conditions emerge in our most supply-

sumer confidence to undertake larger investments, such

constrained urban markets.

as home buying, upgrades or renovations. Typically, there are lags between a pick-up in job growth and a notice-

On net we expect housing starts nationally to stay relatively buoyant at about 210,000 units.

able boost to housing demand—sometimes thought to

Residential renovation activity will also be fueled

be about two years. Thus, notwithstanding the strong

by many of the same factors such as employment and

housing starts in 2017, the job gains last year are likely

income growth. Expect about 4 per cent growth in reno-

setting the stage for stronger housing demand over the

vation expenditure in 2018, with continued focus on

next few years — particularly in markets like Quebec and

energy efficiency projects but with emerging trends

Alberta where the gains were so sharp.

toward home automation and multi-generational adap-

2017 was the year that mortgage interest rates began

tations.

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to retrace some of their long-term trend declines. Many in the industry are concerned that this will pose some sort of risk rates will have on the 2018 market is likely

Important to Keep Interest Rate Changes in Perspective

to be pretty muted. First, while the effective

Recent Rises Are a Small Share of the Large Declines in the Past Decade

on the horizon, but the impact that interest

five-year mortgage rate rose about 45 basis points through 2017 and may see some further modest rise in 2018, these changes are still pretty minor in comparison with Peter Norman is VP & Chief Economist at Altus Group, and leads a national team of economic advisors providing policy analysis, feasibility assessment, and economic intelligence to the home building and real estate industry. He can be reached at peter.norman@ altusgroup.com.

the almost 300-basis-point decline over the past decade.

In addition, interest rates have more of an impact on housing price than the volume of sales transactions. This is to say that households on the margin of affordability that are ready and willing to buy, will seek lower-priced product rather than withdraw from the market completely.

Sources: Altus Group Economic Consulting based on major banks

Home BUILDER

Winter 2017

9

Customer satisfaction

Optimize 3Ps to Create Outstanding CX

By Tim Bailey

There are proven business initiatives that generate

understanding the needs of homebuyers in a target-

profound results and home builders may employ one

market allows product to be brought to market that meets

or more of these initiatives, such as Lean, Six Sigma, or

those needs and provides those solutions.

Kaizen, to stay the course towards sustained excellence.

Product design must consider demographic, ethno-

Lean initiatives help reduce waste and inefficiencies. Six

graphic, psychographic and economic information for

Sigma practices reduce defects and deficiencies. Kaizen

a target market. Home building is a high-stakes indus-

maintains a focus on continual improvement. The core

try and including features or specifications that are

building blocks of all business improvement initiatives

not valued by a target market adds unnecessary costs.

are People, Product, and Process. Understanding the

Designing a product that “checks all the boxes” for the

interactions of these 3Ps is essential to

target market will maximize value for

CX—the customer experience.

customers, increase sales velocity, and improve margins.

People

Process

A key ingredient in a suc-

Auditing the current process in home building means digging deep into every area of the company.

cessful organization is the

A well-intentioned team

people. The knowledge, atti-

and market-matched prod-

tude, aptitude, and genuine

uct will not be able to succeed

caring of a collective group of

without a sound process. “A

people in an organization has a

ity expert W. Edwards Deming. A good

people only solves part of the equation,

process is repeatable, scalable, efficient,

as those people must also be aligned to

and constantly improving. Auditing the

the right roles. A highly skilled construction manager who consistently exceeds time, quality, and budget objectives, but falls short with custom-

current process in home building means digging deep into every area of the company. It is a significant undertaking but reaps great rewards.

er-facing interactions, should be provided with thorough

Process analysis unearths existing process bottlenecks,

training to help excel at customer interactions, or be buff-

non-value-added stages, inefficiencies, and waste. Lay-

ered from those situations in order to leverage what he or

ering the customer journey over that process exposes

she does best for the company. Hammering a square peg

potential “friction points” and allows the process to be

into a round hole does not create solutions, only friction.

engineered to enhance the customer experience.

Recognizing key strengths of individuals and aligning

The effects of process deficiencies are often easy

these strengths with respective roles and responsibilities

to spot, but getting to root causes is what facilitates

will maximize success for the organization.

improvement. A root cause exercise called “5 Whys” is a

Comprehensive and ongoing training of people will

common practice in Lean, Six Sigma and Kaizen method-

always generate a significant return on investment. Skills

ologies. It involves digging deep into a negative effect by

and knowledge gained by people in an organization bet-

asking a series of “why” questions five times. The answer

ter equip those people to be trusted and empowered. An

from each “why” forms the next question and the fifth

organization is only able to scale successfully if people

“why” generally exposes a root cause.

within their area of responsibility. It is important to

Using 3Ps for CX

remember that trades and suppliers form a substantial

The customer experience is at the core of the interac-

percentage—and integral part—of the “people” for a

tions of people, product and process. To “manage with

home builder and must also be considered as part of that

metrics” to optimize the 3Ps, leading companies rely on:

detail in the 3Ps blueprint.

10 Home BUILDER Winter 2017

son every time,” according to qual-

of the organization. Having the right

are afforded the trust and authority to make decisions

Tim Bailey is Division President of Avid Ratings Canada, a leading provider of customer loyalty research and consulting to the home building industry.

Through the Avid system, industry-leading clients improve referrals, reduce warranty costs, and strengthen their brand. He can be reached at tim.bailey@ avidratings.ca.

bad system will beat a good per-

tremendous impact on the success

Product The best people and processes cannot be successful if

Employee feedback Trade feedback Customer feedback Production statistics

the product misses the mark. In home building, “product”

Deficiency/warranty data

includes factors such as design, specifications, loca-

Market research

tion, and price. Achieving a successful “product-market”

Financial results

fit is the goal, and fortunately there is a vast amount

Business excellence designed around the 3Ps will

of data that can be leveraged to ensure that product-

result in teams that are engaged, organized and advan-

market fit is not left to chance. Home builders are not

taged, and a customer experience that creates loyal

building structures, but providing “solutions.” Intimately

promoters.

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COMMON CENTS CONSTRUCTION

How to Build a Human Firewall from the Ground Up

By Patti Walsh

As the residential construction industry continues to

their own right—in essence, a human firewall. Just as

realize—and leverage—the benefits of digital technology,

insulation inside a home’s walls is needed to keep cold

the conversation surrounding such technologies is shift-

air out, a human firewall is essential to keep malicious

ing. Suddenly, builders, developers and contractors are

hackers at bay. A sound cyber awareness program con-

no longer asking whether it makes sense to invest in the

sists of three integral components: education, testing

cloud, mobile devices or the latest building information

and governance.

modelling software. Rather, they’re looking for ways to

The first component, education, refers to cyber aware-

remain technologically relevant while simultaneously

ness training offered during the onboarding process and

keeping their businesses safe.

to existing employees. Because cyber threats are con-

This is no easy task. As the cyber landscape rapidly

stantly changing, employee training should be an ongo-

evolves from one day to the next, it’s clear that a standard

ing process, not a one-time event. Think of it as a plan

anti-virus program isn’t going to cut it. But with limited

toward building a human firewall. When you’re building

resources at hand—particularly in the areas of IT staff and

a house, you don’t look at a set of blueprints once—you

budgets—building and managing a robust cybersecurity

review them regularly, making sure everything is built to

program seems unattainable particularly for smaller resi-

spec as you go along. Cyber awareness training should

dential construction businesses.

be approached in a similar manner.

Fortunately, there are countless things you can do to

Just as cyber awareness training should be ongoing,

defend your business on a small cyber budget—the most

so should your organization’s efforts to test employee

effective being building a cyber-aware workforce.

and contractor cyber knowledge. To ensure your training

A Threatening Place First steps: Building a human firewall While building a human firewall may seem like a huge task, there are three simple things your company can do right now to set you well on your way. uu Strengthen your passwords.

Put rules in place to make sure passwords are strong and changed regularly. uu Limit data access. Make sure only those that “need to know” have access to sensitive data. uu Put cybersecurity processes in place. Whether someone loses a mobile device or receives a suspicious email, they should know who to call—and what the process entails.

Patti Walsh is a partner with Grant Thornton LLP in Edmonton. She works with organizations of all sizes in the construction and real estate sector. Patti can be reached at Patti.Walsh@ca.gt.com or by phone at 780-401-8246.

program is effective, it’s important to define the metrics you want to track and measure ahead of time—and peri-

While IT security systems offer a valu-

odically test your people’s awareness in various ways to

able layer of cyber protection, the truth is

make sure those metrics are improving. To get the most

half of all cyber breaches start by targeting

out of the tests, try to make them real for your employ-

organizations’ email systems and browsers.

ees—for example, go undercover and create mock emails

If that number seems high, keep in mind

from the site superintendent asking them to click on

that today’s hackers are significantly more

a link.

advanced than those of the past—and, as

The third element of a

such, cyber attacks are much more difficult

human firewall is strong

for an untrained eye to identify.

governance. Through auto-

To give you an example of what a cyber

mated reporting and ana-

breach may look like, imagine your company

lytics, you should be able

possesses valuable information that com-

to track your cyber aware-

petitors would love to get their hands on.

ness progress over time and

A savvy hacker, recognizing this, sets out

determine the effectiveness

to steal it with the intent of selling it to your

of your awareness training.

competitors. To do this, he first needs to find employees with access to the company’s data

Ahead of the Game

and systems—so he scours social networks

Given the interconnected

until he finds one, making note of any col-

nature of the construction

leagues on the individual’s friends list.

industry, and the growing

A strong cyberawareness training program should uu Introduce best practice policies to build awareness; uu Be interesting, personal and real; uu Be part of everyday behaviour; uu Make it easy for people to report suspicious emails, a potential cyber attack or other concerning behaviour; and uu Clearly outline your company’s cybersecurity processes.

Next, the hacker creates a fake but recognizable

prevalence of cyber threats,

email address—maybe ending in .ca instead of .com—to

a human firewall isn’t just

impersonate the targeted invidual’s colleagues or boss,

nice to have—it will likely be

and sends a personalized email with a link. Once the

a mandatory cybersecurity

link or attachment is clicked, the hacker is able to install

measure for any business hoping to land major con-

malware—either into the company computer system,

struction projects in the future. With that in mind, early

the individual’s computer or a mobile device—giving

adopters that invest in cyber awareness programs now—

the hacker backdoor entry into the company’s systems,

and demand the same from their suppliers and contrac-

where he can easily steal the desired information.

tors—will inevitably be ahead of the curve when that time

Elements of a Human Firewall The key to preventing breaches like these lies in increasing the awareness of employees and end users

comes. Those that don’t, however, may find themselves falling behind and potentially exposing themselves to a higher risk of a cyber attack—and the financial and reputational loss that often comes along with it.

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to such a level that they become a line of defence in

Home BUILDER

Winter 2017

11

Renovator profile

g n i k a M k r a M r e H

By Frank O’Brien

Shannon Lenstra, president of multiple award-winning Kon-Strux Developments, is a renovation and innovation leader in Calgary

This kitchen makeover resulted in a 2017 national SAM award for best kitchen renovation under $200,000.

Fighting “tailgaters”

In ten years Shannon Lenstra of Calgary

The 2014 downturn—when oil prices cra-

“started from scratch” to build Kon-Strux

tered—tested the mettle of company owners

Ironically, the motorbike-riding mother of

Developments Inc. into one of the top reno-

throughout Alberta. Kon-Strux was no excep-

two credits her encounter with a bad contrac-

vation firms in the city.

tion. Backed by a sterling reputation for straight

tor for helping her start Kon-Strux, and, per-

Kon-Strux has won a wall of awards,

dealing, a willingness to take on a multitude of

haps, for its subsequent success.

including national renovation honours this

projects—including custom-home building—

In what she calls her “past life” as an interior

year from the Canadian Home Builders’ Asso-

and diversification into a unique new field,

designer, Lenstra worked with a number of

ciation (CHBA) for Canada’s best kitchen reno-

have kept all but one of Lenstra’s full-time staff

contractors as a project manager.

vation under $200,000, and for a whole house

of 14 working.

renovation.

“One particular fellow showed me what not

She also kept most of her 75 separate sub-

to do,” she said. “I did not want to be that type

But, like any successful Calgary entrepre-

contractors busy. Kon-Strux relies on “a core

of person. I wanted to be ethical, to be above

neur these days, Lenstra and her team have

group” of contractors and designers that reflect

board. To be proud of my work.”

no time or inclination to rest on their laurels.

the work ethic and the standards of her com-

Being a woman in a male-dominated indus-

pany, she said.

That was the underlying theme as she realized that being a renovation contractor would

try means you often have to work harder and

When asked about leading trends in the

also give her the freedom and flexibility to

smarter to prove yourself, Lenstra said, but

renovation industry, Lenstra suggested that

work from home, to raise a family, and to offer

she also insists that gender should be neither

the trends are “whatever the client wants,”

a career with some variety.

a barrier nor an advantage.

though she notes these wants often mirror the

On March 1, 2007 she started Kon-Strux.

“I hire the best person for job. Just as I would

contemporary styles seen on TV renovation

Perhaps it was that brush with an unethi-

not like to be judged by my gender, I don’t judge

shows and in home design magazines. “White

cal, fly-by-night contractor that deepened

others by their gender.”

is big this year,” she said.

Lenstra’s resolve to battle the underground 415

12 Home BUILDER Winter 2017

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taigabuilding.com

Market report

Outlook Mixed for Atlantic Housing Starts into 2018

W W

Starts expected to hold steady despite headwinds from tough new mortgage rules

By Dermot Mack

Three-bedroom waterfront home in Homestead Estates Drive, Italy Cross, Nova Scotia is listed for $490,000—less than the average price of a small condominium in Vancouver or Toronto.

hile the Canada Mortgage and Housing Corp.

(CMHC) outlook is for slightly higher housing starts and prices next

year, RBC Economics Research (RBC) is calling for a “soft landing” in most of Atlantic Canada.

Any forecast for a slowdown in new home

construction must be measured against the historically high levels this year, particularly in New Brunswick and Prince Edward Island, RBC noted. The Atlantic provinces have a slower but steadier pace of new home building than most

Re/Max South Shore Realty, Nova Scotia

growth, but resale house prices may fall hard

Atlantic Canada Total housing starts outlook 2018 (High range projection)

in Newfoundland.

Citing the low oil prices that have provoked a “deep market slump,” RBC senior economist

City

2017

2018

Halifax

2,949

3,285

St. John’s

715

725

Charlottetown

545

705

Moncton

710

670

Fredericton

415

420

Saint John

240

295

Source: Canada Mortgage and Housing Corp.

Housing Market Outlook Q3 2017

of the country.

Robert Hogue sees Newfoundland home prices dropping 2.6 per cent in 2018, compared to 2017.

For many homebuyers and renters unfortunate enough to live west of New Brunswick, however, the Atlantic housing environment may look like paradise.

The average detached house price in Atlantic Canada is around $220,548 and is barely above $300,000 in Halifax. This compares to

There is also the wildcard of the new federal

$531,000 across Canada and more than $1 mil-

mortgage regulations that begin in January and

across the four provinces in fall 2017 to dis-

lion in Greater Toronto and Metro Vancouver.

may have a greater affect on Canada’s lowest-

cuss the issue with real estate and mortgage

Even in Nova Scotia, it is possible to buy quality

priced housing than in the rest of the country.

professionals.

waterfront houses for less than the price of a

The new lending regulations, meant to

Average resale prices are forecast to

cool hot housing markets such as Toronto and

drop a modest 0.2 per cent in Prince Edward

The average 2018 rental rate for a two-

Vancouver, are expected to have “negative

Island next year after posting a year-over-

bedroom apartment in urban Atlantic Canada

results for Atlantic Canada’s housing market,”

year increase of 7.2 per cent this year, said

is forecast at $914 and the average vacancy

according to Paul Taylor, president and CEO of

the Canadian Real Estate Association. New

rate at 4.8 per cent, according to CMHC’s recent

Mortgage Professionals Canada, who travelled

Brunswick and Nova Scotia will see some price

Housing Market Outlook.

14 Home BUILDER Winter 2017

condominium in Vancouver or Toronto.

4

124 Renovator profile economy in the renovation industry.

A member of RenoMark with BILD Calgary Region, Lenstra cites unscrupulous contractors as one of the biggest challenges facing professional renovators. She said Kon-Strux

only one client ever request anything to do with the environment,” she said. “He was the only client willing to pay for it.”

Innovative thinking

is often called in to fix a renovation where the

Kon-Strux has branched into a “drag and

homeowner has already paid thousands of dol-

drop vacation cabins” recycling effort, howev-

lars for shoddy, even dangerous, work.

er, that could become an important extension

“The renovation industry has to find a way to get rid of the tailgaters, and regulate renovation companies,” she said.

Her work with RenoMark wins praise from BILD Calgary Region

of the company.

The company has begun buying mothballed construction trailers from Alberta oil well sites and converting them into affordable recreational cabins. Rural land is relatively inexpen-

“[Shannon] has been instrumental to our

sive, Lenstra noted, and the 14-foot by 60-foot

Renovation Advisory Committee and has vol-

refurbished trailers—which can be sandwiched

unteered as committee chair for a number of

together or stacked—are indistinguishable

years. She takes great personal pride in her

from detached houses, but less expensive.

business and is a staunch defender of best

They are also an example of the innovative,

practices within the renovation industry,” said

push-the-envelope thinking that keeps Kon-

BILD Calgary spokeswoman Sophie Gowsell.

Strux crews working near the top of Calgary’s

Lenstra is equally outspoken when it comes to environmental aspects of the building industry, something that is being entrenched in

residential construction business.

So what now for Kon-Strux as the Alberta economy begins to slowly improve?

building codes across the country and may

“Bigger and better,” Lenstra said. “We want

soon baseline Canada’s national building

to be at the leading edge of our industry—and

codes. “In my 10 years in business I have had

help our clients achieve the lifestyle they want.”

“We want to be at the leading edge of our industry—and help our clients achieve the lifestyle they want.”

Shannon Lenstra

C

4 Market report

Home building In Halifax, the region’s biggest city, housing starts surged 34 per cent through the first half of 2017, compared to a year earlier, one of the sharpest increases in Canada.

Halifax starts are expected to reach a range Tourism Atlantic

from 2,895 to 3,285 homes in 2018, said CMHC, compared to 2,949 in 2017.

All told, though, Atlantic housings start numbers are relatively low, with a maximum of less than 9,000 new homes of all types expected to break ground next year, or about

Lunenburg, Nova Scotia: The average resale house price in Nova Scotia, the largest market in Atlantic Canada, is $227,245.

5 per cent of the Canadian total.

It is expected that, as in most of Canada, starts of condos and townhouses will lead the market as the population continues to flow from rural to urban, and while immigration and the average age of the population increase. In Halifax, multi-family construction is leading single-detached starts by a ratio of nearly fourto-one and the gap is two-to-one in most of the other five major Atlantic cities. The exception is Fredericton, where the 445 starts expected in 2018 will be nearly evenly split between houses and multi-family units.

Any forecast for a slowdown in new home construction must be measured against the historically high levels this year, particularly in New Brunswick and Prince Edward Island.

Renovation Renovation spending in Atlantic Canada is in the $4.7 billion range in 2017 and, if national trends hold, should be north of $5 billion in 2018. More populous Nova Scotia leads, naturally, with current spending at $1.9 billion, according to the Canadian Home Builders’ Association. Generally, homeowners in the Atlantic Provinces spend the lowest amount per renovation contract in Canada, at $11,000.

Like most things in the region, those numbers are not expected to change much in 2018.

Home BUILDER

Winter 2017

C

15

condo report

Wood New H Terrace House in Vancouver: At 19 storeys it is the tallest wood residential building in the world—and boasts among the most expensive condos in the country.

Reaches Heights

By Frank O’Brien

Changes to provincial building codes have raised the height and profile of wood buildings. Now developers in Vancouver and Toronto are elevating what was meant to be a cost and energy saving concept into luxury living.

completing a six-storey wood condo tower, the Cabin, where prices started at $714,900.

While Vancouver’s newest wood condo tower is not only the tallest ever built, it is by far the most expensive.

Terrace House, which starts construction this year in downtown Vancouver, “is the pinnacle of modern development and will stand among some of the greatest residential buildings in the world,” said Macario Reyes, founder and CEO of developer PortLiving.

It certainly represents a new price and luxury pinnacle for wood homes. Half of the condominiums cover an entire floor of the 19-storey tower.

The average-sized 2,200-square foot unit will be priced near $5.5 million—among the most expensive condos built in the city.

The lowest cost condominiums at Terrace House start at $3 million.

The project is the first in Canada for Japan’s Pritzker Prize-winning architect Shigeru Ban and is the tallest hybrid-timber structure in

In 2013, British Columbia was the first to

There is also a green advantage. Since

allow wood residential buildings higher than

wood sequesters carbon, using lumber reduces

As well as the oceanview location, owner

six storeys, but now new towers are soaring to

the building’s carbon footprint. It’s that lower

amenities will include 27-foot high ceilings,

18 floors and higher, and wood condominiums

footprint that could help some wood buildings

marble countertops and floors, and smart home

are selling for prices comparable, or greater

attain a LEED (leadership in energy and envi-

controls including electronic-controlled glass-

than, those built with conventional concrete

ronmental design) rating.

sliding panels to the terraces, in-floor radiant

and steel.

the world.

While the first tall wood buildings, such as

heating and cooling that extends to balconies,

There are a number of five- and six-storey

the 18-storey student residence being built at

architect-designed door handles and landscap-

multi-family buildings going up from B.C. to

the University of British Columbia—which is

ing, and, of course, a “dedicated concierge

Atlantic Canada.

aiming for a LEED gold standard—relied on

team.” The wood is sourced from a sustainably

Building with wood is certainly not new

government funding, private developers are

managed forest in southeastern B.C.

since every Canadian city has heritage build-

finding that wood condos can be privately built

ings, some as high as eight floors, that were

and profitable.

built with heavy timber and are still standing

In Toronto, Curated

Terrace House is expected to be completed in two years and could usher in a surge in wood

Properties is

condo construction.

C

a century later.

The wood towers being being built today, however, uses engineered products such as glulam, a cross-laminated timber product that makes it easier to prefabricate building components. Solid panels up to 20 metres long can be produced in factories with cutouts ready for window and door openings. These components are then shipped to the site to form the walls and floors of the building.

As well, the tallest structures are a hybrid, using concrete and steel for foundations, eleCurated Properties

vator shafts and stairwells. But the primary building material remains Canadian wood.

PortLiving

The biggest concern with building with wood is the fire hazard. But advanced sprinkler systems and other features make modern wood buildings as safe as any other, proponents say.

The Cabin is a wood-hybrid condo project in Toronto.

Home BUILDER

Winter 2017

17

builders speak

Person of the Year 2017:

Canada’s Home Builder Despite government disruptions home builders delivered 200,000 new homes and more than one million jobs in 2017

By Frank O’Brien

president of the Manitoba Home Builders’ Association.

The federal government, meanwhile, raised interest rates by 50 basis points and introduced new lending regulations that made it harder for homebuyers across Canada to even qualify for a mortgage.

The result of all this political meddling: Canada’s housing starts eclipsed 200,000, the inventory of new and unsold homes hit the lowest level in more than six years and housing prices reached record levels, according to North American Services Centre

Canada Mortgage and Housing Corp.

New construction, renovation and repair accounted for more than one million jobs in 2017, making the industry one of the country’s largest employers. The investment value of all residential construction was exceeding $4.9 billion per month as of October, according to Statistics Canada building permits data.

Despite headwinds, residential building permits were running at a near-record pace of nearly $5 billion a month in late 2017.

Canada’s home builders battled concentrated—and often misguided—government

In the Greater Toronto Area (GTA), the benchmark price of a new detached house surpassed $1.2 million, up 25 per cent from

made it harder to achieve zoning for detached

2016, while the typical condo price increased

houses.

42 per cent to nearly $500,000, reported BILD president and CEO Bryan Tuckey in late 2017.

attempts to disrupt housing demand and sup-

In Vancouver a new zero-emissions bylaw

ply to deliver the highest housing starts in

forced all new homebuyers to incorporate

The reason for the new home performance

nearly six decades in 2017. And they created

energy-saving measures that added tens of

is that government measures often ran counter

more than one million jobs in the process.

thousands of dollars to new homes that are

to reality and consumer demand, analysts say.

Canada’s largest housing markets—Greater

already the most expensive in the country. A

The foreign-home buyer tax, for example,

Toronto and Metro Vancouver—were the focus

province-wide BC Energy Step Code, intro-

was largely ineffective because there are so

of unprecedented disruption as all levels of

duced in April 2017, will add from $40,000 to

few foreign homebuyers – less than 1 per cent

government threw up barriers for homebuyers

$80,000 to the cost of a new house, according

of the Canadian housing market and no more

and builders. Yet as the year ended both mar-

to Casey Edge, executive director of the Victo-

than 3 per cent in the GTA according to the first

kets were thriving and new home construction

ria Residential Builders Association.

detailed data from Statistics Canada.

In Winnipeg, and other urban centres,

It is the simple desire of new Canadians

Last spring, following the lead of British

municipalities increased taxes on new home

to own a home that is having a much more

Columbia, the Ontario government launched

developments. In the Manitoba capital, a new

profound affect.

a 16-prong attack on housing demand and

fee added a $5.09 per square foot fee on every

supply in an effort to cool a white-hot housing

new home permit.

levels were setting fresh records.

A report in the winter edition of the Canadian Journal of Urban Research showed that

market. Among other measures it introduced

“On an average new house, this increas-

recent Chinese immigrants to Toronto and

a foreign-home buyer tax, tightened rental

es the construction cost to a homeowner by

Vancouver have a home ownership rate of

controls, introduced an empty home tax and

about $10,000 to $15,000,” said Lanny McInnis,

73 per cent, much higher than in the general

18 Home BUILDER Winter 2017

population. Across Canada, more than seven in 10 of those who arrived in Canada to become citizens between 2011 and 2016 now own their own home.

The report notes that Canada’s decision to raise permanent immigration levels from approximately 270,000 in 2015 to 340,000 in 2020 “will surely have a significant impact” on Canada’s new home sales.

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mortgage measures could also be muted due to the “creative borrowers and increased activity among alternative lenders” according to CIBC deputy chief economist Ben Tal. “Actual [mortgage demand] will slow by only 5 per cent to 7 per cent [in 2018],” he forecast.

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It also delivers what Canadians desire: a quality home and an opportunity for financial security. During 2017, the average new house price increased by $20,400 from a year earlier and by twice to three times that amount in major cities.

As 2017 has shown, Canadian home builders are resilient, adaptive and capable of overcoming immense obstacles to assure Canadians remain among the best-housed in the world.

C

Malco Products, SBC • Annandale, MN. U.S.A. • www.malcotools.com • ©2018 Home Builder Magazine 4.875x9.75 Jan 2018.indd 1

12/8/17 11:08 AM

Home BUILDER

Winter 2017

19

renovators speak

Frontline Outlook for 2018 Busy top renovators take time from job sites to give Home BUILDER their take on challenges, changes and the outlook for 2018

By Frank O’Brien My hope is that by third quarter [we will see] a

and construction trades—which is the same

turn in the economy and spending will create a

story across Ontario, if not Canada, entirely.

noticeable, positive difference in our industry.”

The message needs to hit the school system so we can bridge the gap in coming years.”

Southern Ontario housing sales were cooling in the fourth quarter, but Madsen does not expect renovation spending to follow suit. “I do anticipate the market heating up again. Definitely a prosperous year [ahead] for London and surrounding area.”

Heidi Smith, president of Spaces NL in St. John’s, Newfoundland and Labrador, said an aging demographic and the underground economy are issues Atlantic renovators will be facing in 2018. Smith said most local renovations concentrate on improving

Peder Madsen, co-owner of CCR Building & Remodelling Inc. of London, Ontario,

kitchens and bathrooms—solid-surface coun-

told Home BUILDER that the size of local reno-

tertops are popular—and walk-in closets,

vation contracts has increased, but he worries

which give homeowners potentially the best

about a looming labour shortage.

returns at resale.

“It is not uncommon to see half-a-million

An untapped market, Smith said, is “flex

dollar renovation now,” said Madsen. His

and accessible” renovations to meet the needs

12-person crew “is just swamped with work”

of NL’s large and growing aging population.

Madsen noted.

Looking forward, Smith said the biggest

“There is definitely a need for more city staff

challenge is NL’s underground economy, which she estimates accounts for about 30 per cent of spending taken away from “the honest business that has overhead and is paying taxes.”

Another concern is that new federal mortgage regulations will affect the amount of home equity loans, which are often spent on renovations.

St. John’s is dependent on the resource industry, Smith noted, and is coming off a “hard year.” But she is confident. “It is my opinion that 2018 will be slightly better and therefore hiring may be a possibility but not a certainty.

20 Home BUILDER Winter 2017

Condominium renovations will “certainly match or exceed the volume in detached house renovations.”

Tyson Hiebert, president of Hammerdown Home Renovations and General Construction Ltd. of Winnipeg, and a 2017 RenoMark award winner, sees the biggest opportunity in whole-house renovations.

The majority of these homeowners are empty-nester baby boomers that are either approaching retirement or early into retirement, he explained. “These clients typically have equity in their home,” Hiebert said, with the means to pay for quality, extensive renovations.

They prefer this to buying a new home that

could be more expensive, has higher property

in Canada and downsizing into a condo. “They

taxes and often a smaller yard, he said.

have the money...many see it as their last

“Our clients are requesting a finished prod-

home, so they are doing everything they have

uct that is above the standard new home build.

always wanted,” Capar said.

All of our kitchens have LED pot lighting and

But Vancouver’s new zero-emission bylaw

under-cabinet lighting. Custom vinyl tile and

and B.C.’s new Energy Step Code are causing

vinyl plank are extremely popular in all renova-

problems, he said. “The new Energy Step Code

tions. The options are endless with these prod-

in B.C. is going to bring about a lot of issues in

ucts. They are maintenance free, extremely

the renovation market for whole-house renos;

durable and budget friendly,” he said.

making even a mid-level reno become major

While Hiebert has seen fluctuating demand

as the new energy rules will require substantial

2018: one to assist in sales and another carpen-

Robert Capar, president of Maison D’etre Inc., a multiple award-wining Vancouver

ter to increase our production. Our reputation

renovation company, said two trends may

a CEA is taking up to a month and then you

that we have worked so hard for continues to

define local home renovations this year: the

have the two weeks waiting for report to be

allow growth.”

rise of condominium renovations and the chal-

produced before even applying for the permit.

lenge of meeting new energy codes in both the

Therefore the upfront costs are increasing and

city and across British Columbia.

the timelines to get a project to permit are

this year in Winnipeg, he is confident of a strong 2018.

“I defiantly anticipate hiring to continue. My intention is to add two people to our team in

Home BUILDER wants to hear from frontline contractors and builders across Canada. Let us know your ideas, your comments and your beefs. Write us: editor@work4.ca

Condominium renovations will “certain-

upgrades to the whole house.”

He added that Vancouver’s zero-emission bylaw that came to effect in May 2017 requires Certified Energy Advisor (CEA) Reports, which is causing delays. “Just finding and booking

increasing.”

ly match or exceed the volume in detached

Still, Capar expects to remain busy in 2018.

house renovations.” He noted many house

He plans to hire a project coordinator and “if

owners are selling the most expensive houses

they exist—a qualified renovation carpenter.”

C

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Home BUILDER

Winter 2017

21

home trends

Trends Paul Duchar

to catch in 2018

“Nesting” foldable wall windows are updated this year with superinsulated framing, floor mounted designs and highefficiency glazing in new NanoWall systems.

Smart TVs and appliances, simpler solar and efficient nesting window-walls top picks in trends

By Sylva Shaw

that controls your shower from your

Systems, Inc. The company’s latest

smart phone are just two examples of

model is engineered to be floor sup-

The smart revolution leads the trends in

roof panels that can easily be remove

“stupid-smart”.

ported, eliminating the need to use

new homes and renovations for 2018,

for roof repairs or transport to a new

But some connected appliances could

steel, provides a U-Value of .21-.29,

but care must be taken that today’s

home. A number of manufacturers

become popular, perhaps even manda-

and can be customized in a wide vari-

new ideas won’t quickly be overtaken

now provide these, including Aquarius

tory, with consumers.

ety of sizes and finishes. The superior

by better ones.

Brands with its pre-wired portable

The next generation voice-activated

U-Values are achieved with a web

An example is the last-decade push for

Retrax Solar system that can be acti-

HUB 2.0 refrigerator from Samsung, for

of polyamide plastic reinforced with

whole-house Cat 5 wiring. After home-

vated in less than 30 minutes.

instance, has a built-in 21.5-inch LED

glass fibre thermal break in panel and

owners spent hundreds of dollars to

touch screen that acts as an interactive

frame profiles, according to the manu-

run coaxial cables, connectors and rout-

digital bulletin board. Family members

facturer’s website. The multi-chamber

ers into every room, Wi-Fi came along

can, through their smart phone, share

profiles with 1 3/16-inch wide quadru-

and made Cat 5 virtually obsolete.

photos, access updated calendars, and

ple thermal insulation and cavities can

Rooftop solar is a current tech fad,

write and post memos from wherever

accommodate either double or triple

but many homeowners are now real-

they may be. The HUB 2.0 fridge also

insulated glass. This could be important

izing that normal photovoltaic panels

has a camera inside that can be viewed

as tougher new Canadian energy codes

are expensive to install, add cost and

while shopping. The fridge will even

roll out.

complexity to roof repairs, and the solar

update your grocery list. Incidentally, it

Be smart when recommending new

investment can’t be moved when the

also keeps food cold.

tech trends to clients: ask if you would

house is sold.

Most other major appliance manufac-

install it in your own home.

A solution to this problem is solar

turers are now adding such connected

C

Samsung

features to stoves, ovens and even dishwashers.

Another trend to watch is “invisible”

Quick solar panels: Pre-wired portable Retrax Solar system from Aquarius Brands system can be activated in less than 30 minutes and easily removed for roof repairs or moving to a different home.

22 Home BUILDER Winter 2017

a mirror or wall art when not in use.

Samsung’s super-thin 55-inch to 65-inch The Frame TV, introduced this year, has a picture-frame border and can rotate at least 100 different

Innovative smart home appliances con-

paintings.

nected to the Internet (and therefore

Foldable, or nesting, wall windows

to smart phones and tablets) are now

have been around for awhile but have

a top trend, but some applications will

started to catch on in new homes—

likely not catch on because they add

especially Vancouver’s high-rise

complexity rather than convenience. A

condos—and renovations, particularly in

smart kettle that sends you a message

vacation home makeovers.

when the water boils and another

The leader in the field is NanoWall

Samsung

Aquarius Brands

large-screen televisions that turn into Next generation: Samsung’s HUB 2.0 is a voice-activated refrigerator that includes a built-in 21.5-inch LED touch screen that acts as an interactive digital bulletin board.

Invisible televisions: New models can switch TV screens to become a large mirror or wall art, with eventually hundreds of paintings or designs to choose from.

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technology report

Work & Sales technology

By Dermot Mack

Y

Concord Pacific

From communicative safety gear to virtual reality, the latest technology keeps contractors and builders ahead of the curve ou have 12 guys working a large and busy construction site. A government safety

Realtors and potential buyers use virtual reality goggles to tour new homes before they are built. The goggles also help brief contractors before construction starts.

officer leans into your construction trailer to inquire about safety procedures. You

flip open your laptop and click on a feed com-

decreasing,” said LifeBooster co-inventor and

Guelph-based Granite Homes is offering a

ing from 24 armbands, two strapped to each

CEO Bryan Statham. These types of workplace

virtual reality experience of its model homes at

worker. The data is flowing from LifeBooster

injuries cost companies in Canada approxi-

its Doon West project in Kitchener. LandMark

wearables, a Vancouver company that is just

mately $2.4 billion a year.

VR Technology goggles allowed users to physi-

rolling out the technology.

The most important factor, according to

cally explore unbuilt homes in a virtual world

The data will send a warning about a poten-

Statham, is the ability to capture information

and interact with the features and finishes, said

tial fall, for example, and its continuous moni-

continuously to see cumulative risks through-

sales and marketing manager Sandra Aveiro.

toring shows where any worker is at high risk

out a day, which now takes a lot of time and

“Granite Homes aims to be at the forefront

of back strain, carpal tunnel syndrome, repeti-

money to obtain. “With new wearables that can

of technology when it comes to home tours,”

tive strain injuries, and other musculoskel-

be done quickly and effectively.”

Aveiro said. Granite plans to use the custom

etal afflictions. The system can track an entire

Virtual reality (VR) headsets are a boon to

workforce to build a database for reference and

the gaming and movie industry but they are

There are also always new tech tools to

produce reports and guidance to prevent injury.

also becoming a tech tool in home renovations

make the job of contractors easier. One of

For instance, it can pinpoint workers that con-

and home building.

these is the thermal imaging gun by Black

sistently lift objects improperly so the worker can be alerted and trained how to do it right.

“Musculoskeletal injuries are the largest injury type and their numbers haven’t been

VR software in its future communities as well.

In fall 2017, renovation members of the

and Decker. It costs a bit over $50 and allows

Greater Vancouver Home Builders’ Associa-

a contractor to check for energy leaks. It

tion (GVHBA) set up a home show demonstra-

could become quite handy as energy codes

tion of how it works.

become more demanding. There are other

“The virtual reality 360-degree tour allows

more advanced detectors that will also show

clients to see what a renovation can and will

wiring, plumbing and studs behind the wall. C

look like,” noted Dawn Sondergaard of the GVHBA. VR is also being harnessed by many new home developers in both Toronto and Vancouver, who say it is a powerful tool when preselling new projects, especially to potential buyers who do not live in the area. Clients can don VR headsets and then take a virtual tour of

A contractor wears LifeBooster armbands that continuously monitor and report health and safety information to a central data base.

24 Home BUILDER Winter 2017

Black and Decker

LifeBooster

a new condo complex and its individual suites from anywhere in the world.

Developer Concord Pacific is using VR headsets to sell new condo projects in both Toronto and Vancouver, and VR architectural renderings were also used to brief contractors before any walls went up.

Thermal imaging gun spotlights hot and cold spots in a home to help increase energy savings. Some can be used as advanced stud or electrical wire finders.

Don’t let howling winds pull your building wrap loose. Or driving snow and sleet push into your walls. Fight back. The TYPAR® Weather Protection System leads in tear strength, blocks out moisture and backs you up with the only lifetime limited warranty in the business.

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www.TYPAR .com

TOOLTalk

The Science of Winter

It is the dead of winter and our clients are cold, if not freezing. So let me start with dog and cat doors that have been approved for a Passive House construction— withstanding 50 pascal blower door tests while letting animals in and out.

by Jon Eakes

Lab-tested Pet Doors for The Canadian Winter

thing as a pet door without compromising the

little-known aspect of the HeatLine company

energy efficient envelope. It is worth looking at

is their cables are self-regulating; automati-

Freedom Pet Pass doors were invented

this company’s technical information and third

cally adjusting their heat (energy) output at

in Bay City, Michigan out of the necessity of

party lab testing reports—a pet company with

each point (microscopically) along their length.

wanting to stop the snow from piling up in the

cold Canada in its heart.

As the surrounding temperature (water or air)

living room due to the wintertime failures of any and all dog doors. But this inventor hap-

Keeping Water Lines Frost-Free

increases, HeatLine products automatically decrease their heat (energy) output, and vice

pened to be interested in energy efficient con-

Many companies make heating wires for

versa. They can cross over themselves without

struction as well and built his unique double

roofs as well as pipes, but these wires are

burnout problems, allowing wrapping around

magnetic flapper to have no hinges to freeze

essentially ON or OFF and must not overlap. A

a valve while running along a pipe. In a long run

and break while still meeting the 50-pascal pressure standard of the best of construction.

Then he created cat doors just as efficient, but cats still get through. We finally have a way to meet a customer’s demand for such a

26 Home BUILDER Winter 2017

to the lake, they only heat where it is cold, and only as much as is needed to stay frost free; so deep in the ground they rarely heat, and when close to the surface or even over rock they heat as needed. Their operational costs are lower and the cables last longer than those always heating, even though they are always ON and ready for the cold.

Snow Melting Rather Than Snow Shoveling A little-known fact about snow melting pads is that if they are clear when the snow starts, they will usually evaporate the snow on

Embedded hydronic snow melting systems

contact before there is any snow cover—hence

for large complexes are available from compa-

no water run-off and no need to leave them on

nies like HeatLink.

all the time. If turned on only during snowfall— evaporating the snow as it falls—an eight-step entrance would cost about one dollar for electricity for a six-hour snowfall. Would you pay a kid one dollar to shovel the steps?

Then There is The Need to Thaw The Ground If you need to build or repair in winter and the ground is already frozen, thawing the

Electrical snow melting mats from Heat-

ground is often the only way to dig. When the

Track are made differently for residential and

water main to the house has frozen, as hap-

commercial installations and are very flexible

pened to thousands of houses in Montreal last

in installation—as you can see in the photo.

winter when the sustained cold and little snow cover sent frost lines down 8 feet in places,

by radiation, and then the soil sends the heat

trying to thaw the pipe with electrical jumpers

down by conduction. When placed so as to

often has bad consequences back in the house.

avoid wind wash, they are extremely efficient

Thawing the ground itself is a better option.

without any open flames, thawing up to 1.6

A little-known fact about snow melting pads is that if they are clear when the snow starts, they will usually evaporate the snow on contact before there is any snow cover.

There are several dozen ground-heating products on the market that range from chemicals to glycol-based systems, but the simplest apply direct heat. Using overhead heaters is the least efficient because the gas or electrical heaters heat the air that heats the ground and there is a lot lost in the middle.

The Serious Toaster uses infrared heaters that have the advantage that they do not waste time with the air but heat the soil directly

inches per hour.

Electrical ground thaw blankets can be very effective when they include topside insulation to hold the heat in. Heat blankets are reputed to thaw one foot of soil a day—and RapidThaw claims to be able to thaw frozen water pipes that are eight feet deep. Such pads are often easy to find as rentals.

All of these direct heat options can be useful in curing concrete poured during freezing temperatures. Welcome to Canada, where winter is both an art and a science.

OL TO L K TA OL TO L K TA

Montreal-based TV broadcaster, author, home renovation and tool expert Jon Eakes provides a tool feature in each edition of Home BUILDER. www.JonEakes.com

Home BUILDER

Winter 2017

27

renovation

Rebates Offered for Green Renovations Ontario homeowners who complete energy-efficient renovations

can apply to become a par-

will be eligible for thousands of dollars in rebates under a new program

ticipating contractor with

announced by Ontario’s environment minister late last year.

the Green Ontario Fund. To

But only if they work with contractors registered under the program.

qualify, contractors need

The government will spend $600 million over four years to estab-

to provide confirmation of

lish the rebate program through a provincial agency called the Green

business licences, insurance, and professional certifications. Contrac-

Ontario Fund.

tors must also complete orientation sessions concerning the require-

The incentive program offers up to a $7,200 rebate for new insula-

ments of Green Ontario Fund incentives, obtain additional training

tion, up to $5,000 for new windows, and up to $20,000 for new ground

specific to each measure, and sign a participation agreement.

source heat pumps.

The government said buildings generate nearly a quarter of the prov-

The program has been launched online at GreenOn.ca. In order to

ince’s greenhouse gas emissions.

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access the rebates, homeowners must hire a contractor who has been screened by the Green Ontario Fund.

Online Searches Suggest Reno Surge

A qualified installer of insulation, windows and/or heat pumps

Some Renovations Pay, Some Don’t Sustainable Home Improvements

Perfect Touch Home Renovations of Hamilton recently told homeowners planning a sale that some renovations just aren’t worth the money.

In an article in the Hamilton News, the firm said certain renovations may even turn off potential buyers.

Online search data suggests that more Canadians are planning renovations this year.

Searches for general contractors across Canada jumped 117 per cent in the first few months of 2017, according to Nancy Peterson, founder and CEO of online contractor review forum HomeStars.

“We’ve never seen that kind of volume,” Peterson said in an interview with BNN (Business News Network).

Marvin Windows

“The data we’re seeing is clear. People are really nervous about moving because the cost of going from your condo or existing house and moving into something larger can be enormous,” she said. “I suspect people would rather invest in their home and stay put and see how they can increase the footprint in their existing space.”

“Last year alone we saw project spending on renovations went from

Replacing drafty windows can pay off at resale time.

just under $17,000 to $21,000.”

The tips include ignoring fads and trends that may not be suitable for potential buyers.

Condo dwellers are also dishing out more on fixing up their homes.

Renovation spending on condos is up 40 per cent from last year, more

Some major projects, like a new roof or windows, can pay off, accord-

than double the average historical year-over-year increase.

HomeStars data shows the price of renovating a basement, bathroom,

ing to Perfect Touch. “[But] this is not the time to put in a new pool or a home theatre.

and kitchen have all climbed by double digits over the past several years.

You will not recoup the loss on these big-ticket items, and it may even

The cost for home inspections and garage renovations has decreased

reduce your prospects.”

however.

The company is also wary on finishing a basement.

“You may think converting that unfinished basement into a kid’s playroom or wine cellar will boost your home’s value but you have no idea what the new homeowner needs. It is easier to work with an empty space than to have to gut a room and remodel it.”

28 Home BUILDER Winter 2017

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Does Your Reno Council Have News to Report?

Why not tell us what’s happening in your neighbourhoods?

E-mail: editor@work4.ca

C

Our Survey Confirms...

Home BUILDER Magazine delivers results like no other magazine in the residential construction industry: C More than 110,000 readers eagerly read every issue in search for advice and contacts.

C 100% of renovators and contractors found new information or products.

C 86% of all builders found new information or products.

C Renovators, contractors and builders all refer to web links, find new suppliers and purchase products as a direct result of Home BUILDER; more than 80% took two or more such actions.

Home BUILDER Magazine: Readers, Referrals, Results

31

Call us to book your premium ad space: 514-620-2200 • sales@work4.ca

• www.HomeBuilderCanada.com

IndustryNews

Less Than 1 in 10 GTA Sales is a New House Sales of new single-family homes contributed only nine per cent (312 units) to total new home sales in November, down 82 per cent from a year earlier, 76 per cent below the 10-year average for November, and a record low for any November single-family sales since Altus started tracking in 2000.

With 7,455 units sold, single-family homes represented only 17.3 per cent of the 42,992 new homes sold in the GTA up to the end of November.

“The November data should not be interpreted as a sign of diminished demand for single-family housing in the GTA, in fact, quite the opposite,” said then BILD President and CEO Bryan Tuckey. “Single-family housing is still the first choice for many people, especially for those with families.”

But Tuckey said many buyers simply can’t afford a new house. In Of the 3,473 new homes sold in the Greater Toronto Area (GTA) in November 2017, less than one in 10 was a new detached house, according to data from Altus Group and the Building Industry and Land Development Association (BILD).

November, the benchmark price for new single-family homes was $1.22 million, 25.1 per cent above the benchmark price in November 2016.

“Our industry wants to build the single-family homes people want at prices they can afford, but we are required to implement provincial

About 91 per cent of these sales (3,161 units) were condominium

policies such as the Places to Grow Act, which mandate intensification.”

apartments in low, medium and high-rise buildings, stacked townhouses

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and loft units.

B.C. Bans Dual Agencies

CALENDAR

The B.C. government has banned dual agency residential transactions in a series of measures meant to cool speculation and shady deals in the province’s hot housing market.

International Roofing Expo February 6-8 New Orleans, Louisiana theroofingexpo.com

Canadian Concrete Expo February 7-8 International Centre, Mississauga, Ontario canadianconcreteexpo.com

BUILDEX Vancouver

National Home Show March 9-18 Enercare Centre Toronto, Ontario nationalhomeshow.com

New York Build Expo March 14-15 Javits Centre, New York, New York newyorkbuildexpo.com

Tradeshow and conference February 14-15 Vancouver Trade and Convention Centre Vancouver, B.C. buildingscanada.com

Montreal Real Estate Forum

American General Contractors Association

BUILDEX Edmonton

ACG 99th annual convention February 26-28 New Orleans, Louisiana convention.agc.org

Calgary Home & Garden Show March 1-4 Stampede Park Calgary, Alberta calgaryhgs.com

Construction Expo

March 9-10 Agriplex Surrey, B.C. theconstructionexpo.com

30 Home BUILDER Winter 2017

March 18 Palais des congres de Montreal Montreal, Quebec realestateforums.com

The changes take effect March 15, 2018.

These will include better informing buyers about how much commission realtors are entitled to, as well as restricting dual agency, where when one agent acts on behalf of both buyer and seller on the same deal.

The changes stem from recommendations made last year by an independent advisory panel created by the former B.C. Liberal government.

The panel had suspected speculation in the housing market, with many properties being quickly flipped after they were sold.

Get Your Own Copy Today!

March 20-21 Edmonton Expo Centre, Edmonton, Alberta buildexedmonton.com

CHBA National Conference March 21-23 Fairmont Hotel Victoria, BC chba.ca

INF E B

D E M OR

Spring Home Show

March 22-25 International Trade Centre Regina, Saskatchewan reginahomebuilders.com

Subscribe to Home BUILDER Magazine and get the information that will keep you up to date with the Canadian residential construction industry’s latest trends, developments, home improvement techniques and building products.

Visit www.HomeBuilderCanada.com and click on [ subscribe ]

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IndustryNews

Net Zero Compliance Will Be Costly Making all new homes “Net

and under the basement floor;

Zero” in energy terms—as expect-

windows and doors are upgrad-

ed to be mandated by the federal

ed; the roof is reinforced to allow

government for 2030—will be

for the weight of solar panels; bet-

costly to home builders and buy-

ter and more efficient mechanical

ers, according to Bob Finnigan,

systems are required; conduit is

a past president of the Canadian

needed for future energy sourc-

Home Builders’ Association.

es... and the list goes on,” he said.

A true Net Zero home pro-

Finnigan

estimates,

with

duces as much clean energy as

today’s technology, it would cost

it consumes. These homes are

$22,000 to $40,000 depending on

up to 80 per cent more energy-

the house size and type, to make

efficient than typical new homes,

a new home Net Zero.

and they use renewable energy

“That is a huge amount of

systems to produce the remain-

additional cost to the new home-

ing energy they need, Finnigan

owner, and, without the benefit

explained in a recent column in

of a renewable energy system,

the Real Estate News Exchange.

which can double the cost, the

But Finnigan warns it will be expensive to reach this target.

payback in energy savings does not make economic sense today,” he

“The framing changes; walls get thicker; vapour barriers and air-

said.

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sealing are more detailed; there is a lot more insulation in the walls, roof

A d v e r t ise rs in Th is Issue Advertiser

Page Phone

Website

Altus Group Limited . . . . . . . . . . . . . . . . . . 31 . . 877-953-9948 . . . www.altusgroup.com Federated Insurance Company of Canada . .23 . . 844-628-6800 . . . www.oneloonie.ca

Home Prices Will Rise 4.9 Per Cent Average home prices in 53 Canadian cities are expected to rise by 4.9 per cent by the end of 2018 to about $662,000, according to December 2017 outlook from Royal LePage.

The estimate comes amid efforts to address housing affordability

Icynene Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . 800-363-4040 . . . www.icynene.ca

in Greater Vancouver and the Greater Toronto Area. These include the

IKO Industries Ltd. . . . . . . . . . . . . . . . . . . 2, 21 . . 855-456-7663 . . . www.IKO.com

upcoming mortgage financing stress test by the Office of the Superinten-

Malco Products Inc. . . . . . . . . . . . . . . . . . . 19 . . 800-328-3530 . . . www.malcotools.com

dent of Financial Institutions (OSFI), which is now in effect.

Meridian Brick and Masonry Supply . . . . . BC . . 770-645-4513 . . . www.meridianbrick.com

Royal LePage expects the new measure will slow the housing

Owens Corning Canada LPF . . . . . . . . . . . . . 7 . . 800-438-7465 . . . www.owenscorning.ca

market, particularly in the first half of 2018, as buyers adjust both their

Royal Building PRODUCTS . . . . . . . . . . . . . 21 . . 614-754-3463 . . . www.royalbuildingproducts.com

expectations and finances.

Simpson Strong-Tie Canada . . . . . . . . . . 4, 21 . . 800-999-5099 . . . www.strongtie.com

“With a large number of existing homeowners potentially failing the

Taiga Building Products Ltd. . . . . . . . . . . . . 13 . . 403-279-0926 . . . www.taigabuilding.com

test when refinancing, a temporary reduction in consumer confidence

TYPAR / Fiberweb Inc. . . . . . . . . . . . . . . . . 25 . . 800-284-2780 . . . www.typar.com

may further stagnate price growth as potential buyers and sellers take a ‘wait and see’ approach,” Royal Lepage noted.

Home BUILDER

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Winter 2017

31

You made

a LASTING

IMPRESSION on me.