Servicing the residential building community for 40 years.
Contact: Adam Zaretsky 905-761-2471 azaretszky@appliancecanada.com
We look forward to building the future with you in 2023. From early design to construction, Enbridge Gas applauds all the participating Ontario homebuilders who are building energy-efficient and sustainable homes better than code.
Green
Pine
Regency
Forest
Are we headed for a slowdown or a crash?
Job Ready program helps fill the gaps, Peterborough/Kawarthas and West End HBAs made big strides in 2022, why we are at a potential watershed moment in Ontario housing history, and meet OHBA’s 2023 committees, councillors and board of directors!
services for the home building industry.
39 Building Buzz Colours of the year, the trending sizes of homes, HCRA courses for builders, a new coalition for accessibility, the spirit of the season and happy birthday, Pollard!
but are net-zero deadlines realistic?
With working from home becoming commonplace, what does it mean for interior design and architecture?
EDITOR Ted McIntyre ted@laureloak.ca
ART DIRECTOR Ian Sullivan Cant
COPY EDITOR Barbara Chambers
CONTRIBUTORS
Luca Bucci, Alex Piccini, Andrew Snook
ADVERTISING
Cindy Kaye, ext. 232 cindy@laureloak.ca
DIRECTOR NEW BUSINESS Paul McNair paul@laureloak.ca
PUBLISHER
Sheryl Humphreys, ext. 245 sheryl@laureloak.ca
PRESIDENT Wayne Narciso
Oak Publishing laureloak.ca ohba.ca
No matter which television channel, newspaper or radio station you listened to, housing in Ontario was a consistent topic of conversation in 2022, and there are more challenges on the horizon this year, with global economic uncertainty and a higher interest rate environment. It will make 2023 a pivotal year for housing and a major test of the new tools and mechanisms being implemented by all levels of government to enable more residential construction.
What is encouraging is the increasing alignment of all levels of government on both the problem and solutions. First and foremost, we are seeing more municipal governments recognize that the housing crisis Ontario is experiencing is fundamentally rooted in a lack of supply. In December 2022, we saw immediate and bold steps from Toronto Mayor John Tory with the 2023 Housing Action Plan. The plan called for multi-unit dwellings in neighbourhoods currently restricted to single-family homes, revisiting existing housing projects to maximize densities, and expanding existing co-op and non-profit rental housing.
Prior to the City’s plan, the provincial government, through the More Homes Built Faster Act, provided revised hous-
ing targets for Ontario municipalities and additional municipal tools through the Better Municipal Governance Act to help meet the targets. Since these provincial changes, we have started to see municipalities and the province aligning on the supply problem and working together to bring forward substantial change that will dramatically increase housing. Municipalities and the province are working together to restore housing attainability. There is also a role for the federal government to play. Leveraging surplus government-owned lands and harmonization towards a national unified building code and tax policy all significantly impact the cost of new homes. Through the Canada Mortgage and Housing Corporation, the federal government can also take an important leadership role in supporting unique housing solutions across Ontario to ensure more options are available throughout the housing continuum.
Building Better Together means that all levels of government are working with industry to expedite the construction of all types of new housing and return balance to the market, putting more homes and purpose-built rentals within reach of more Ontarians.
NIMBYism, however, remains a pow-
erful force. There is a strong incentive for individual municipal councillors to get behind community opposition to growth and development because they are elected by existing—not future— residents. In addition, various designations and forums are open to misuse as a means to slow or block development. This can lead to local decisions that limit the ability to add housing, as was recognized by the Housing Affordability Task Force in its recommendations. This approach is misguided economically and socially. New home construction in Ontario annually employs 554,102 people, pays over $37.7 billion in wages and drives over $76 billion dollars of direct investment into communities across our province. Opposing new construction isn’t an approach that Ontario can afford to take, particularly at a time of economic uncertainty when we already are in a housing supply deficit.
New or renewed communities ensure more opportunities for individuals and families outside of existing residents. These Ontarians are depending on having the variety and volume of housing options in both major urban centres and smaller adjacent communities. If we don’t build better together, and communities aren’t prepared for the growth coming their way, these individuals and families will in many ways, need to place their lives on hold, whether that means delaying having children, not taking a job opportunity or living far from friends and family. When a culture of housing cannot take root, communities that are anticipating significant population growth cannot adequately prepare to meet that growth with a local approval system that is predictable, fair and ready to support new residents.
We are at a turning point in the story of housing in our province, though. With many governments at all levels rowing in the same direction, Ontario has a tremendous opportunity to plan for growth and construct complete communities to support that growth. OHB
Piccini is the Manager of Government Relations for OHBA
Why this is a watershed moment in the history of—Alex
Job seekers matched with entry-level placements at OHBA member companies in second year of program
The Ontario Home Builders’ Association’s Job Ready program offers an innovative, industry-led solution for labour challenges, matching the entry-level roles of construction industry employers with eager Job Ready employees, as well as the support services to assist both.
The home building and renovation industry is striving to bring in large numbers of new hires. An expanded skilled labour force grows from a sizable pool of new entrants with industry exposure and basic skills. OHBA understands that, as an industry, builders and contractors share responsibility for expanding our workforce. Through the Job Ready program, OHBA is providing a welcoming work environment where individuals are able to experience the construction industry, learn basic skills and begin to build a career through paid job placements. Additionally, ongoing retention supports have been put in place to ensure their longterm success in the construction field.
In its second year of funding by the Ontario Skills Development Fund, the program has made adjustments that are driving broader employer participation and increased employee retention, while experimenting with options to continue to identify and address opportunities to grow our labour force.
“We are in the midst of a housing crisis,
and in order to accommodate our expected population growth, we need to build 1.5 million homes in the next 10 years,” says OHBA CEO Luca Bucci, “The OHBA Job Ready program is working to ensure that we are building a sustainable workforce, allowing us to reach these ambitious targets. We are proud to have EnerQuality as a delivery agent on this important initiative.”
OHBA members and other industry employers have shown that they are part of the solution to workforce challenges. From high-rise builders to landscaping sub-contractors, the construction industry is well represented. With Human Resources functions stretched thin at some companies, the Job Ready program has made it easier and more cost effective for companies to find motivated workers for entry-level roles.
“With the struggles to find skilled tradespeople these days, we’re glad to help new workers get their start in the construction industry,” says Sammi Khachi of Khachi Design + Build. “The program helped us onboard and train a great candidate and we’re so pleased to watch them develop skills to build a career in construction.”
The program is providing more prepared workers to the industry and is continually
looking at ways to provide additional skills in the pre-employment period.
The second year of the program has seen continued improvements over the first offering. Clear expectation setting with participants, an in-depth orientation to the industry and practical tool skills have built program retention to where over 90% of trained and matched participants are currently in or have completed the sixmonth program.
“Building on last year’s learnings, we’re making matches quicker between employees and employers, and rounding out the employees’ skills and training so they can be safe and productive on site from day one,” says Monica Curtis, president and CEO of EnerQuality, managing organization for the Job Ready program. “We’re also digging into specific challenges like transportation, with research projects testing solutions to address barriers to entry-level employee retention.”
While the majority of positions are considered entry-level roles, many roles are with organizations that provide a path to a career in the residential construction industry.
“I’ve learned something new every day since I joined the program in 2022,” says Idrish Patel, a Job Ready employee with Brinks Property Services. “The company put me with a great team for on-the-job learning and I plan on building a career in construction.”
Find out more about the program online, check out the FAQ or call the OHBA Job Ready employer recruitment team at (437) 263-3487. OHB
The leader in condensing technology...does it again.
2022–2023
Luca Bucci
CEO (non-voting)
Louie Zagordo President
Bob Schickedanz
Past President
Dave Depencier
First Vice-President
Mike Memme Second Vice-President
Alana De Gasperis
Second Vice-President
Bianca Bruzzese Treasurer Christina Giannone Secretary
Neil Rodgers
President’s Appointee
Alex Beduz
President’s Appointee
David Renfroe
Chair, Builders’/Developers’ Council
Garnet Northey Chair, Renovators’ Council
Tom McLaughlin Chair, Presidents’ Council
Derek Cashmore
Chair, North Regional Group
Glenn Evans Co-Chair, East Regional Group
John-Ross Parks Co-Chair, East Regional Group
Maria Kyveris Co-Chair, Central Regional Group
Cheryl Shindruk Co-Chair, Central Regional Group
Heather Galloway Co-Chair, Southwest Regional Group
Jon Rumble Co-Chair, Southwest Regional Group
Jason Sheldon
Large Local - BILD
Nick Carnicelli
Large Local - West End HBA
Patrick Daniels
Large Local - Greater Ottawa HBA
Peder Madsen
Large Local - London HBA
Jason Burggraaf Chair, Executive Officers’ Council
CHAIR Bianca Bruzzese
Louie Zagordo
Dave Depencier
Christina Giannone
Tom McLaughlin
Bob Schickedanz
Luca Bucci – CEO (non-voting)
Sajida Jiwani – COO (non-voting)
CHAIR Garnet Northey
Louie Zagordo
Susan Cudahy
Christina Giannone
Dave Depencier
Bob Schickedanz
Heather Galloway
Cheryl Shindruk
Dave Ionico
Luca Bucci – CEO (non-voting)
Sajida Jiwani – COO (non-voting)
CHAIR – Pierre Dufresne
Louie Zagordo
Rick Martins
Neil Rogers
Nick Carnicelli
Bob Schickedanz
Dave Depencier
Christina Giannone
Bob Ridley
Luca Bucci – CEO (non-voting)
Sajida Jiwani – COO (non-voting)
The Daikin Fit hybrid (gas/electric) heat pump system is a side discharge, smart HVAC system that won’t compromise on comfort and connects to traditional ductwork.
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It was a productive 2022 for the West End Home Builders’ Association (WE HBA), which introduced major initiatives to its members and the local community. In addition to existing support to the Mohawk College Awards Program, WE HBA added a brand-new Mohawk College Scholarship for a student in Skilled Trades, in partnership with Cogeco. The association also made major steps towards supporting the YWCA in Hamilton and donated $10,000 to support the building of the Putman Family YWCA, Hamilton’s first affordable permanent housing residence for single and mother-led families.
It also created a non-partisan alliance, HamiltoNEXT, in partnership with the Hamilton-Halton Construction Association and the Realtors Association of Hamilton-Burlington. The team and group of volunteers engaged residents at community events and neighbourhood activities, asking Hamiltonians what their vision of their city is and what their expectations are from the new council and mayor. The alliance efforts were supported by a print and digital campaign and caught the attention of the media numerous times.
In October, WE HBA partnered with
Mohawk College and the Ontario Youth Apprenticeship Program (OYAP) for an educational showcase that offered 100 young women and gender-diverse individuals in Grades 7 and 8 the opportunity to learn about rewarding career possibilities in residential construction, skilled trades and STEM industries. The WEBUILD showcase consisted of a full day of interactive workshop sessions, tours of Mohawk Campus and an inspiring session with Shannon Tymosko, an apprentice and advocate for the skilled trades.
“Women make up only 13% of the total workforce in construction, and only 5% of skilled trades workers,” noted Bianca Bruzzese, WE HBA president.
“The WE HBA Women in Industry (WIN) Committee is advocating for positive, cultural change that will increase inclusion and gender diversity in the residential construction industry.”
During the event, the students had the opportunity to visit different booths hosted by community partners and WEHBA members, including Heartwood Renovations, Cachet Homes, Dynamic Heating & Cooling, Losani Homes), Milwaukee Tool, Reimar Forming Construction, Riverside Millwork Group, Gateway Group), York1), Guest Plumbing & Heating and the YWCA.
The event was supported by WE HBA partners BDO, Bell, Enbridge, Molinaro Group and T. Johns Consulting. OHB
The Peterborough & The Kawarthas Home Builders Association (PKHBA) partnered with Habitat for Humanity Peterborough Kawartha Region to host a charity event on Dec. 8 to benefit families in need of affordable housing in the Peterborough area.
The event featured both a live and a silent auction, as well as a raffle, with proceeds going towards Habitat for Humanity for the construction of new homes for families in need. Auction items were donated from local businesses, as well as a wine tree with over 30 bottles donated from board members of the PKHBA, Habitat for Humanity and the Peterborough and District Construction Association.
The charity auction, organized by a group of dedicated volunteers from both the PKHBA and Habitat for Humanity,
received support from various local businesses and organizations. PKHBA would like to thank our members, sponsors and supporters for contributing to a successful event.
“We were thrilled to be partnering with Habitat for Humanity to support local affordable housing,” said PKHBA President Mitch Cleay. “Affordable housing is a crucial need in our community, and this event helped support families in need.”
The auction raised over $17,000 from competitive bids and the generosity of PKHBA’s home builder members, business owners and the community.
Anyone who missed this event and would like to support Habitat for Humanity Peterborough Kawartha can donate directly on their website at habitatpeterborough.ca
Enercare is the market leader providing new high efficiency equipment for high rise developments across Ontario. Our team of technical operations experts offer end-to-end project management services across the entire range of home comfort solutions.
Start with a consultation with our team of engineers, who will visit your site, go over your plans and help you choose the right products and services for your building, including Heat Pumps, Vertical Fan Coil, ERVs, Central Heating and Cooling Plants. We will source, deliver and commission your equipment while providing you with an installation allowance on every piece of equipment installed. Unit owners will benefit from the Enercare Advantage™ rental program, offering new equipment for a low monthly rate, with ongoing service and repair included.*
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Cosentino’s new Dekton Kraftizen is the first large-format stucco material of its kind, allowing interior designers and architects to envision for any indoor and outdoor application. Inspired by Venetian stucco and rooted in minimalism, versatility and sustainability, the Dekton Kraftizen Collection boasts industry-leading durability in five diverse hues with rich, deep textures: Umber (pictured), Nacre, Argentium, Micron and Albarium. COSENTINO.COM
With over 40 years of experience in the industry, 7 Oaks has concentrated on urban forestry consulting—from smaller residential land development applications to large development projects—using up-to-date knowledge of matters including arboricultural practices, municipal by-laws, planning matters and construction methods and processes. All of our arborists are certified with the International Society of Arboriculture (ISA) and are ISA TRAQ-certified Tree Risk Assessors. 7OAKSTREECARE.CA
The new Juno RetroBasics LED Trim Kits provide the most economical solution for efficiently lighting a residential new construction or reno project space using LED technology, with virtually zero maintenance. Available in 4" and 5-6" sizes, this all-in-one design offers a smart solution that features RGBW for full-colourchanging functionality, as well as tunable white for everyday applications. The downlight family consists of two trim styles to cover an array of applications.
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The Amrad Insulated Radon Panel is a key component in a radon gas mitigation system. This panelized solution offers superior thermal insulation with stable long-term R-Value along with increased thermal resistance in lower temperatures. It helps maintain the continuity of the thermal envelope by decreasing thermal bridging, reducing energy consumption while providing more comfortable indoor living and a more environment-friendly product. AMVICSYSTEM.COM
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San Remo Lighting’s new Gimbal Recessed Downlight offers dramatic flexibility—both in terms of angle and lighting warmth. Set the switch at installation for either of three colour temperatures (warm, natural or cool white) and then adjust the gimbal to suit the room’s decor. Smooth dimming ranges from 10-100% brightness. IC-rated for direct contact with ceiling insulation and approved for damp locations, the ultra-thin design requires no housing, making it ideal for narrow ceilings.
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Delta MS helps you build more than comfortable basements; it helps build your reputation as a builder too. Exceeding both drainage and dampproofing code requirements in Ontario, the durable dimpled membrane ensures basements stay dry and last longer by keeping water away from foundation walls with its exclusive Air-Gap technology. That means healthier living spaces for your homeowners, fewer warranty claims and call-backs, and peace of mind for you both.
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Some of the best builders choose Pollard Windows & Doors. A proud Canadian manufacturer of quality products, celebrating 75 years in business. Awarded the ENERGY STAR Most Efficient mark in 2023 for the Best in Class performance of their Advantage Plus windows in both dual and triple glazed units. Backed by exceptional service and installation and an industry-leading 20 year warranty. You can trust Pollard to be the right choice for new home and multi-level construction and the perfect solution for window and door replacement in any property management or residential renovation project.
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What are municipalities doing to meet housing supply and affordability demands?
conomics 101 explains that when demand exceeds supply, the product price is driven up. It’s certainly a primary market force behind the exorbitant cost of buying a home in Ontario.
And while multiple interest rate hikes have helped to douse the fire of the pandemic housing price spike, demand isn’t going anywhere—particularly given the federal government’s plan to welcome 1.45 million new permanent residents to Canada over the next three years. It’s those types of numbers that are driving the Ontario government’s call for 1.5 million new homes by 2031.
That mandate, coupled with the formidable shortage of skilled trades, has added emphasis on the need to grease the wheels of the often-burdensome development approvals machine so that builders can get shovels in the ground faster, while keeping costs down in the process.
To that end, the Ford government introduced Bill 23 last fall. The legislation, which was passed into law on Nov. 28 (with consultations on the bill’s regulations having extended until the end of 2022), will support Ontario’s newest Housing Supply Action Plan: “More Homes Built Faster.” This plan is part of a long-term strategy to increase supply and provide attainable housing options, including more affordable and purposebuilt rental housing across the province—one of the many focuses being on development near transit stations.
With government charges and fees adding nearly $200,000 to the overall cost of building an Ontario home, according to an October press release by the Ontario government, Bill 23’s amendments to the Planning Act, Development Charges Act and th e Conservation Authorities Act will freeze, reduce and exempt fees. Affordable and inclusionary zoning units, as well as non-profit housing developments, will be exempt from municipal development
charges (DCs), parkland dedication levies and community benefits charges. Rental construction will also have reduced DCs, and conservation authority fees for development permits and proposals would be temporarily frozen.
The Province “is also working with industry partners to consult on the issue of land speculation as a detriment to the government’s housing supply goals, and whether potential regulatory changes under the New Home Construction Licensing Act are required to address the issue. This winter there will also be a consultation on a policy framework setting out the key elements of local vacant home taxes. Right now, only a handful of municipalities have the authority to charge this tax on unoccupied residential units to incentivize owners to sell or rent them out.”
As a means of further discouraging foreign speculation in the local housing market, Ontario also has the highest and most comprehensive Non-Resident Speculation Tax (NRST) in the country, at 25%.
Bill 23’s “changes to the Planning Act will also remove site plan control requirements for most projects with fewer than 10 residential units (with limited exceptions),” the Province added. “This would reduce the number of required approvals for small housing projects. Changes also include focusing responsibility for land use policies and approvals in certain lower-tier municipalities to eliminate the time and costs associated with planning processes by upper-tier municipalities. This would give the local community more influence over decisions that impact them directly, clarifying responsibilities and improving the efficiency of government services for citizens.”
Paul Freeman, Chief Planner with York Region, is concerned about losing that type of control at the regional level, as well as other aspects of the legislation. “We are aligned with the provincial goal of building homes and increasing
the speed of approvals; we are committed to this,” says Freeman. “But Bill 23 takes a disappointing approach, making it punitive to municipalities who carry a partial role in building homes. There are many unintended consequences that will hinder the ability for housing unit construction to occur any faster.
“Regional planning plays a critical role coordinating growth with necessary infrastructure to ensure financial sustainability, (which will now be) a missing gap, with local municipalities taking on a heavier workload, limited resources and tighter deadlines.
“The proposed legislation reduces the amount of DCs, parkland dedication fees and community benefits charges collected by municipalities to fund growth-related capital costs of infrastructure and services for new housing, and to provide the essential services to residents,” Freeman adds. “The proposed legislation will force municipalities to delay construction of infrastructure needed to service new housing, assume additional risk by taking on more longterm debt and consider service level reductions. Further housing supply will be restricted, as infrastructure projects are deferred due to restricted municipal revenue. And existing taxpayers will see the consequences in the cost of growth, which is already lacking proper funding. Further, attempts to reduce development charges will not translate into lower home prices, as such prices are market driven.”
Housing affordability and availability, however, have been a focus for the Ontario government, with many of the legislative changes likely motivated by the Ontario Housing Affordability Summit a year ago. The purpose of that January 2022 virtual meeting, which included big-city mayors and regional chairs, was to “gain a collective
2022–2030 ANNUAL AVERAGE
100,000 75,000 50,000 25,000
understanding of what can be done to tackle the ongoing issue of Ontario’s housing affordability crisis and to increase efficiencies and innovation in creating housing supply.” (Separate conferences were also held with the smaller, northern and rural municipalities shortly thereafter.)
The summit highlighted a late-2021 report by the World Bank indicating “that Canada (and Ontario) lagged behind other developed countries in the time it takes to get new developments approved, with an average of 249 days needed to obtain all necessary approval for a standard reference project (an industrial warehouse in the country’s largest city) compared to an average of 152 days across the 38 OECD (Organisation for Economic Cooperation and Development) countries.”
“Delays and barriers at the municipal level are slowing down supply,” the summit report (which was not made public) noted. Among the many reasons for delay were unclear requirements (with variations across municipalities) and public consultations—“There may be multiple rounds of consultation on the same matter. And, as our communities grow, sometimes local residents simply do not want change that is needed.”
Builders weren’t absolved. In response to the concern of some sitting on approved developments, the report noted
intended purpose, which is to facilitate the development of infrastructure,” Bucci says. “We just want development charges to be levied in a fair way, and we believe the mechanisms being brought in by Bill 23 achieve that fairness.”
than 16 months. The worst were in Caledon, Toronto, Richmond Hill and Vaughan, each at 27 months or greater. Smaller projects were cited as equally susceptible to those delays as larger ones. According to the report, each month of pre-construction delay is estimated to result in $2.60 to $3.30 per square foot in additional construction costs. To put it another way, “A 125-unit high-rise incurs $276,000 in extra costs due to loancarrying charges, increased municipal charges and inflation for every month of delay, while a 125-home low-rise development incurs $456,000,” according to the Residential Construction Council of Ontario (RESCON), which noted in November that “presently, up to 45 agencies and groups outside a municipality may be involved in reviewing, commenting on, or approving an application.”
More damning, however, may have been the Altus/BILD study’s revelation of eyeopening increases in development charges and municipal fees in the GTA—up 30% for low-rise development and up 36% on high-rise development since the 2020 study, with charges amounting to $53 per square foot for low-rise housing and to $99 per square foot for high-rise housing. In the 2020 study, six of the 16 municipalities had low-rise charges that exceeded
$100,000, and two had charges that exceeded $125,000 per unit. In the current study, nine of the 16 municipalities now have charges that exceed $100,000 per unit, and seven exceed $125,000. On the high-rise side, no municipality exceeded $100,000 per unit in the 2020 study, but in the current study, four municipalities have charges above $100,000.
That added fuel to a fire ignited by a late-2021 report entitled, “New Homeowner Money in the Government’s Bank: How Unspent Municipal Reserves are Impacting Building Livable, Affordable Communities in the GTA.” That research, also compiled by Altus for BILD, indicated that more than $5 billion in development charges and fees was sitting in Ontario municipal reserve funds—with the City of Toronto accounting for more than $2.6 billion alone.
“We understand that development charges pay for growth, and we are happy to pay them,” says OHBA Chief Executive Officer Luca Bucci. “The issue we have is that since Covid, we’ve been seeing huge increases in development charges without any rationale as to why these increases are taking place. And quite frankly, these are also occurring while cities like Toronto are sitting on large development charge reserves.
“For the past year, municipalities have been using development charges as a revenue generator rather than for its
As part of its housing strategy, the Ontario government has been utilizing its Lean & Continuous Improvement Office, a part of the Cabinet Office. Core to the “lean” philosophy is the principle that expenditure of resources for any goal other than the creation of value for the end customer is wasteful and therefore should be a target for elimination. One of the overarching themes emerging from the office’s research has been a lack of data from municipalities, such as how long it takes for a typical application to go through the approvals process. Transparency and tracking were often noted, all of which can be improved with the better use of technology, the 2022 summit observed.
Fortunately, investing in development-submission and tracking software has been on the front burner for many regions since the summit. The Canada Mortgage and Housing Corporation (CMHC) has recently invested $2.35 million for a pilot project in Simcoe County that could provide a template for municipalities that have yet to digitize the cumbersome development approvals process. The venture will include a data exchange platform to enable transfer of information between groups, application tracking to support applicants and inform policy decisions, and a workflow engine to develop a seamless process that will improve efficiency, reduce errors and lead to better communication on files between municipalities, Indigenous communities and others.
The Province of Ontario has also allocated up to $350 million through 2022-23 to help municipalities identify and implement modern solutions, including through the Municipal Modernization Program and Audit and Accountability Fund. Of the total, $45 million has been allocated to the new Streamline Development Approval Fund (SDAF), which will help Ontario’s 39 largest municipalities unlock housing supply by streamlining, digitizing and modernizing their approach to managing and approving applications for
“Delays and
at the municipal level are slowing down supply. And as our communities grow, sometimes local residents simply do not want change that is needed.”
3.0 2.5
Housing starts (millions)
residential developments.
Milton is among the communities to take advantage of the funds by developing its own public-facing portal. “Phase one— building permits—will be up and running this spring,” Hogan says. “And then we are expanding it to our planning applications and engineering permits. It should be fully up and running by late 2024. So it will be a one-stop shop, where everything can be done digitally, including payments.”
York Region has been at the forefront of expediting the approvals process thanks to the automation and transparency pro vided by its YorkTrax digital development application and tracking system.
Although it received a failing grade according to the 2022 summit’s overall performance report, Milton appears to be pulling its weight in multiple regards. It ranked No. 1 in the Altus study for fastest development approval times and third overall for planning processes, planning features and government charges, among the 16 profiled communities. As time lines for approvals go, Milton’s first-place average of 10 months per project was less than half the 21-month average time.
“With Bill 23, the Faster Act make pledges. Milton’s pledge was 20,000 new homes by 2031, and our forecast already blows that out of the water—and
olatility is the new normal, Tom Standage, deputy editor of The Economist, related last month in the magazine’s “The World Ahead 2023” outlook. Apart from the continuing war in Ukraine, Standage cited possible flashpoints this year being Taiwan/China, Armenia/Azerbaijan and Turkey/Greece, as well as more vitriolic politics in the United States.
“The pandemic marked the end of a period of relative stability in geopolitics and economics. Somebody has called it a 20-year-long nap, or a holiday from history. We essentially had low interest rates, no inflation to speak of and relatively few great power conflicts,” Standage says. “And now it’s all back. Today the world is much more unstable. It’s convulsed by the unpredictability of geopolitics. We’ve still got the aftershocks of the pandemic rippling through our economies. We’ve got economic upheaval, the return of inflation and extreme weather, which just seems to be getting worse. And we’ve got rapid social and technological change. So unpredictability is the new normal, and there’s no getting away from it.”
But you’ve got to try. Here at home, the Bank of Canada raised interest rates seven times in 2022—from 0.25 to 4.25%—to slow down inflation and try to stablize the economy, with expected results for the housing market.
“We have already seen significant impact from the tightening of monetary
policy,” says Robert Hogue, Assistant Chief Economist for RBC Economics at the Royal Bank of Canada. “On the whole, retail-side activity has slowed down significantly since March, and pre-construction sales have also plummeted, and that’s directly related to higher ownership costs that higher rates imply. To some extent, this is how monetary policy gets transmitted to the real economy—through interestsensitive sectors, and housing/housing construction is a primary [example].
“Throughout the year, the Bank of Canada will obviously monitor inflation very closely, and if it behaves the way they expect, probably by the end of 2023 we’ll be talking about it beginning to roll back some of the increases that we’ve seen over the last several months,” Hogue predicts.
CMHC Deputy Chief Economist Aled ab Iorwerth forecasts a mild recession. “Obviously, this has all sorts of implications for home builders,” ab Iorwerth says. “We’ll see a lot of economic weakness and the labour market slowing down, and that will give a lot of builders pause.”
But expect recovery to commence in the second half of this year, said CMHC’s other Deputy Chief Economist, Patrick Perrier, in CMHC’s “The Road Ahead for the Economy and Housing – Fall 2022 Update.”
In the interim, look for the national average MLS home price to have tumbled 14.3% by the end of Q2 2023 from its historic 2022 Q1 peak of $770,812. On
an annual basis, Perrier sees prices to have grown 2.6% in 2022 compared with 21.3% in 2021, then declining 6.3% in 2023 before rising back 2.1% in 2024.
The CMHC report states that the Bank of Canada’s three indicators of trend inflation remained unchanged throughout 2022 and that the policy rate is not expected to decline until mid2024. “As inflation converges back to its target range by mid-2024, the Bank of Canada policy rate will also decline and stabilize at 2.5%, the midpoint of its estimate for the neutral policy rate,” the report indicates. “Other interest rates will broadly mimic the policy rate over our forecast horizon to 2024.”
CMHC believes the home building sector will experience several delays in the coming year and expects national housing starts to decline throughout 2023 to 244,000 units, but to recover in 2024 to a total of 270,000 units.
“Long-term, we don’t think there’s enough supply out there,” ab Iorwerth says, “so pressure on affordability will persist over time.”
The difficulty of predicting the future—even in the short term—was evidenced by Ontario Finance Minister Peter Bethlenfalvy’s fall economic statement in November, which revised its projections downward from those made in the spring 2022 budget. While
last year’s Ontario housing starts fell only marginally—from 86,900 to 86,600—the 84,000 starts initially forecasted for 2023 were downgraded to 76,900. And despite the looming need for 1.5 million new homes by 2031, the Ontario government dropped its 2024 forecast from 87,300 housing starts to just 77,800.
Home resales, meanwhile, went from the -11.3% predicted in the spring to a 31.7% drop. And just as disturbing, the 1.5% increase for this coming year was revised to a 14% decrease. And as far as Ontario housing prices for 2023 go, the province went from a 2.6% growth expectation to an 8.1% drop.
There was some positive news for the construction industry, however, with the promise of an additional $40 million investment into the Skills Development Fund—a welcome injection, given reports suggesting that 100,000 additional skilled workers are needed to meet the provincial government’s objectives.
The Ontario government report also recommended caution for the economic road ahead. “Recent elevated levels of consumer price inflation in many jurisdictions around the world have prompted key central banks, including the Bank of Canada, to aggressively tighten monetary policy. If central banks determine that there is a significant risk that consumer and business expectations for elevated inflation are becoming entrenched, they may move even more aggressively and for longer,” the report reads. “This represents a significant downside risk for global economies, including for the U.S. economy. Rising interest rates also pose a risk to asset markets, including housing, as prices adjust to reflect changing monetary policy conditions.”
Further, “although supply disruptions are expected to ease, they continue to pose a heightened risk to the global economy, which is compounded by recent disruptions to major commodity markets.”
To paint the picture of the financial impact of the changing interest rates over the past year, consider a $1 million home with a 20% down payment and $800,000 mortgage. On January 1, 2022, RBC’s five-year fixed mortgage rate was 3.07%. Heading into the end of December it was 5.72%. That means today’s homebuyer will need to shell out $1,171 extra per month and approximately $101,000 extra on interest payments over the five-year term.
So the increased rates have had the expected chill on major real estate markets across Ontario.
From Jan. 1, 2022 to Aug. 31, 2022, year-over-year sales price increases were experienced in 13 of 15 cities across the province, with the exceptions of Windsor (-15.7%) and Ottawa (-1.1%). However, Fall 2022 sale price estimates showed decreases in 11 of those 15 cities.
“However, the current lull in the market is only temporary,” says RE/MAX Canada President Christopher Alexander. “Until housing supply increases, these boom and bust cycles will likely be a recurring event.”
The lumber market has also been tough to pin down. A year ago, more than one industry expert believed that lumber would never return to $400 US (MBF/1,000 board feet), and that prices were, in fact, likely to rise. Those numbers have since tumbled from a January 2022 high of $1,329 to below the $400 mark.
According to international online data source Trading Economics, lumber is expected to decline to $356.08 US /1,000 board feet by late 2023, due to a slowing U.S. home building market. “The Federal Reserve’s aggressive tightening cycle has pushed 30-year mortgage rates to levels not seen since 2001, leading to slower home construction and souring sentiment among home builders,” the site indicates.
There has been speculation that cities such as Toronto and Vancouver are experiencing a housing bubble. In fact, in the UBS Global Real Estate Bubble Index, published in October 2022, Toronto topped the list of overvalued markets among the 25 cities profiled from around the globe, while Vancouver placed sixth.
“The bubble is much more acute than in the late-’80s and early ’90s,” cautioned economist David Rosenberg in a November Toronto Star article. “The household debt and home price bubble are more acute. It’s not a question of will the housing crash be as bad as the 1990s, but how much worse will it be.”
But are we even in a bubble? And is it even possible for a crash to occur in our current housing market? “I don’t think this is an issue of a bubble bursting. I think it’s more of a parking brake being applied,” says John Lusink, president of Right at Home Realty. “Certainly, the interest rate hikes have halted runaway price appreciation. Prices just went running with the bulls for the last few years, and now sales have ground to a trickle. Projects are being cancelled on the pre-construction side.”
Comparing the current market to that of the 1989 housing crash is misplaced, suggests CMHC Market Specialist Dana Senagama. “There was an element of panic buying (in the driving up of housing prices early last year). People had a fear of being left out, so psychology played a role. And there was also the anticipation that rates were eventually going to go up. But while higher rates have helped settle the market, home prices are still very high. And remember that we were talking about housing being unaffordable in 2018, well before the pandemic.”
Traditionally, a bubble burst requires an inordinate amount of supply, so that when illogically high housing prices fall back to earth, supply exceeds demand. But that’s not the case today.
“The crash of 1989, primarily the condo market, was due to an abundance of supply,” Senagama says. “We had a lot of developers releasing units without pre-selling them—building on speculation because the market was so hot. But what h a ppened was that at the same time we had interest rates topping out around 18% and inflation around 12-13%—so very different market conditions than now. I think the world has learned from the experience. Right now, the majority of lenders require 80% of preconstruction home sales in order to get financing. So we’re never going to again have a scenario where builders are selling 20% with hopes of selling the remaining 80% afterward.
“Further, modern homebuyers are less susceptible to rising interest rates due to stricter lending conditions and stress tests. And while we’ve seen higher inflation, it’s not like it was then either,” Senagama says. “We’ve already seen the brakes being applied by interest rates—and subsequently mortgage rates. But it won’t slow demand so much that the market will crash, because the fact is that demand is fundamentally still outstripping supply.”
But don’t expect it to slip too low, given demand issues in other areas, Trading Economics cautions. “Recordlow inventories and diminished production have affected lumber prices. The war in Ukraine and the tightening sanctions against Russia and its ally Belarus, which account for more than 10% of the global export of lumber, have squeezed global supplies. At the same time, a string of sawmill curtailments, with Interfor, Canfor and West Fraser Timber announcing cutbacks, added to concerns about tight supplies.”
Keta Kosman, publisher of Madison’s Lumber Reporter, also believes supply shortages will prevent steep price drops. “The cash price of benchmark Western SPF (spruce/pine/fir) 2x4s has dropped to US$390 (per thousand board feet) on the usual seasonal slowdown for construction and for lumber sales,” Kosman said last month. “I do not see it going much below that, which is already lower than cost-ofproduction here in B.C. The sawmills would be losing money. There have been curtailments and downtime in the past several months. The drop in production volumes will keep the balance of supply and demand, so prices will not fall much further.”
If current national and provincial immigration plans remain intact, there will certainly be incentive to facilitate residential construction. In November, the department of Immigration, Refugees and Citizenship Canada released its immigration levels plan for 2023-25. The plan noted that Canada will target 465,000 new permanent residents this year, 485,000 new residents in 2024 and 500,000 more in 2025 for a total of 1.45 million new residents over the next three years.
“We’ve already experienced some significant challenges in recent years with skilled trades, but it’s now spread to many other sectors outside construction,” RBC’s Hogue says. “We have close to one million job vacancies across Canada. We’re seeing some movement from policymakers to focus on training new folks in construction especially.”
“On the flipside, I think increasing
Urban 10,000+
Housing Starts, SAAR Housing Starts Trend Line (6-month moving average)
immigration levels will certainly lead to more demand for homeownership and rentals,” notes CMHC’s ab Iorwerth. “So, it reinforces the picture that there’s a lot of demand for housing in the long term and not enough supply.”
Much of that supply needs to be allocated to the rental side, suggests John L usink, president of R ight at Home Realty. “While I think it’s great for the country that they will be bringing in people who will, hopefully, be gainfully employed, and increase the tax base, the bulk of new immigrants will come to the GTA, where the jobs are,” Lusink notes. “This is what has been very frustrating for us in the industry. There’s been no real valid supply-side fixes. This will make the rental market incredibly difficult for those who can only rent.”
But don’t assume that demand will overwhelmingly be for rental units, says ab Iowerth. “When people come into Canada, there has been an impression that they will be going into the rental sector, but immigrants are increasingly bringing in wealth, so they may go into the homeownership market. So, it probably represents an across-the-board increase in housing demand.”
For ab Iorwerth, though, even if inflation gets under control and the Bank of Canada is able to begin reducing interest rates, there are other areas of concern.
“Canadian households have very high levels of debt, which makes me a little bit cautious about the forecast, because it’s possible that things can go wrong with such a high level of debt,” he says.
One positive ab Iorwerth notes is that the supply chain issues plaguing the sector (and countless other industries) are starting to dissipate, which should help alleviate some of the inflated costs.
But give those changes, as well as the Bank of Canada’s, some time to work their way through the system, says Canadian Imperial Bank of Commerce chief economist Avery Shenfeld.
In a December memo to clients, Shenfeld noted that “the tightening cycle likely has reached its zenith, but we’ll need the pain of these higher rates to persist for a while to stall economic growth and thereby cool inflation.”
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Paint companies have conducted their research and splashed the news about trending hues for 2023.
Dulux, for its part, has identified its Vining Ivy teal as 2023 Colour of the Year, while highlighting a theme of bold, expressive shades of nature in home decor.
Vining Ivy is a striking green-blue jewel-toned hue that is symbolic of deep water, “It is both calming and invigorating, infusing home decor with a much-needed breath of fresh air after a few challenging years,” Dulux notes.
“Canadians took pause during the pandemic to reflect on what matters most, appreciating the beauty of the natural world like never before, and this is translating into uber-earthy and rich, sanctuary-like colour choices for the home,” says Mitsu Dhawan, Dulux brand manager. “As opposed to softer neutrals that have been popular in recent years, the new nature-inspired tones are bolder and
more expressive, reflecting an optimistic mood as we emerge ready for the next normal.”
Teals, for example, remind one more of precious gemstones than foliage, and earthen browns and oranges are more energetic than terracotta.
“This trend reflects our desire to feel more anchored and connected to the planet and turn toward the wonders of nature as a way to move forward and counterbalance the pressures of the world,” Dhawan says.
Pastels are still hot, if paint and coatings brand Valspar’s 12 colours of the year for 2023 are any evidence. Valspar has matched each of the dazzling dozen, which range from Ivory Brown to Everglade Deck (pictured), to a specific facet or emotion of life, all relating to what people may find helpful to complement their space.
“Valspar’s 2023 Colours of the Year are usable shades that encourage selfexpression and anyone can envision
in their space,” says Sue Kim, Valspar Colour Marketing Manager.
Sico paint brand by PPG has focused on a single Colour of the Year for 2023, one that caters to Canadians’ yearning for serenity and stability during unpredictable times. Its Melt Water tone is a grounded, refreshing teal that combines the healing powers of water and nature with balance and tranquility. It intertwines bold blue and calming green to create a captivating colour symbolic of deep water, Sico observes.
To incorporate this trending teal into the home, Sico suggests painting Melt Water on all four walls, paired with deeper-toned woods and offwhite trim. For a more luxurious feel, it can go glam when accessorized with golden accents and bright white trim. And as an exterior, use a blue-green hue to punctuate a home’s personality, adding immediate curb appeal when featured on a front door.
OHBA members were once again in full force during the holiday season last month, caring for those in need within their communities.
The Daniels Corporaration, DiamondCorp and Kilmer Group partnered up with Habitat for Humanity to welcome three Habitat families to their new homes in the Daniels FirstHome Keelesdale community. The Daniels FirstHome program, a highly successful brand of communities located throughout the GTA, stands for creating more attainable homeownership opportunities through various programs and incentives.
“At a time of year when we gather around with our friends and loved ones, it is truly heartening to know this season will be an unforgettable one for these working families as they look forward to brighter futures and, for the first time, celebrate the holidays in their beautiful, new homes,” said Ene Underwood, CEO of Habitat
for Humanity GTA.
Through their longstanding partnership with Habitat for Humanity GTA and local affiliates, Daniels, DiamondCorp and Kilmer Group have helped empower families in need of a place to call home. “Every Habitat family has a unique story. Whether we are leaving unsafe, unhygienic, overcrowded or unaffordable apartments, we have all struggled with trying to do the best we can for our children,” said Alyssa Keel, one of the participating Habitat partner families and proud new Daniels FirstHome Keelesdale homeowner. “As parents, we want to see our children thrive, become members of their community, make friends, be happy. And we want to ensure that our children are not impacted by our own financial stresses as they grow up—that they get to stay children as long as possible without worrying along with us. You have given us the opportunity to watch our
kids ride their bikes down the street, join clubs, play sports, and be healthier, safer and happier. Thank you for this incredible gift.”
In 2020, DiamondCorp and Kilmer Group were awarded the Habitat for Humanity GTA’s inaugural Developer for Humanity Award, while in 2022, Daniels earned the inaugural Developer for Humanity Lifetime Achievement Award.
In response to both rising food costs and a critical need of volunteers for Dixon Hall’s Meals on Wheels program during the holidays, when volunteer shifts are difficult to fill, developer and builder Broccolini returned for the second year to support Toronto’s Downtown East.
The Broccolini team was motivated by the increasing importance and impact of the program as the rising costs of food and inflation disproportionately affects seniors living on a fixed income.
In 2022, program costs increased by 17% due to food and gas prices. To shine a light on this important issue, Broccolini called upon the development community to support the neighbourhoods they build over the holiday season.
Dixon Hall’s Meals on Wheels program provides a reliable source of nutritious but affordable food for lowincome seniors and adults living with a disability or recovering from illness. Every year, the program delivers more than 65,000 meals from Lakeshore Blvd. to Gerrard St., and from Church St. to River St.
Ontario condominiums are 35% smaller on average than they were 25 years ago, while the average detached home is 25% larger. The Municipal Property Assessment Corporation (MPAC), which tracks property data across the province, is watching to see if this decades-long pattern continues.
In the mid-1990s, the average condominium in Ontario peaked at approximately 1,100 sq. ft. The most recent MPAC data shows the average condo in the province today is about 700 sq. ft.
“As land values increase, we see more units on a single property, which means many of those individual units are smaller,” says Greg Martino, MPAC V.P. and Chief Valuation and Standards Officer. “Because condos are traditionally a major entry point for first-time homebuyers and investors,
the market for the smaller units has remained quite strong.”
A similar trend toward smaller units is also evident in the townhouse market, with stacked townhouses (multiple units constructed vertically on a single lot) being built instead of traditional row townhouses.
In markets where land is relatively affordable, larger family detached homes are being developed. For example, single family detached homes were approximately 2,000 sq. ft. in the mid1990s, while today a typical singlefamily home is around 2,500 sq. ft.
“These are longstanding trends that will likely continue,” Martino says. “It will be interesting to see whether the change in consumer preferences and behaviours over the last couple of years, coupled with recent economic
drivers, like inflation and rising interest rates, will alter the pattern.”
Currently, amongst Ontario’s major urban centres, the average condo size in Toronto is 850 sq. ft. – the smallest in Ontario. Windsor is next with an average of 854 sq. ft., followed by Kitchener (884 sq. ft.), Richmond Hill (892 sq. ft.) and Hamilton (907 sq. ft.).
For those seeking more living space, Barrie, Burlington and Oakville are all municipalities with some of the largest average condominium sizes, at more than 1,000 sq. ft.
This year marks the 75th anniversary for Pollard Windows Inc.
Reg Pollard was constructing prefabricated garden sheds, garages and summer cottages alongside parents Norman and Frances in the late 1940s, when opportunity knocked.
“Someone came to us and asked for storm windows,” Pollard told The Hamilton Spectator in 2012. “So we said, ‘We’ll try.’”
A request for standard home windows followed the next summer, and the family never looked back. They founded Pollard Windows Inc. in 1948, not far from the company’s current location in Burlington.
“The Pollard formula for success has always been simple: work hard,
reinvest in new technology and give customers more for their money,” says Karen Pollard-Josling, Pollard CEO and daughter of Reg, who passed away in 2020.
Today, Pollard is still a 100%-owned-and-operated family business, manufacturing its products in a state-of-the-art, 300,000+ sq. ft. plant, including its own dedicated R&D facility. Recognized as a leader in the window and door market, Pollard continues to develop innovative products that meet and surpass the most stringent building codes in Canada, while employing approximately 300.
The National Kitchen & Bath Association’s latest Kitchen & Bath Market Index (KBMI) signals a slowdown in their market.
The overall market index of 63.2 is the lowest it has been since Q3 2020 and the “future conditions” rating of 55.4 is at its lowest level since Q1 2020, the 2022 Q3 report indicates. Both numbers are indicative of industry professionals’ prediction that the current economic slowdown will continue.
The quarterly KBMI report assesses the overall health of the kitchen and bath industry, along with issues and challenges that industry professionals are facing with their businesses. On a 100-point scale, KBMI ratings above 50 indicate industry growth, while ratings below 50 indicate slowing activity.
While Q3 2022 ratings remain above 50 across all segments (Design, Building & Construction, Retail Sales and Manufacturing), their deceleration is indicative of the industry managing its expectations as consumer demand slows and recession concerns rise. Additionally, Q3 2022 KBMI indicates a 1.3% decline in full-year 2022 sales expectations, versus full-year growth expectations of 9.4% reported in Q2
2022. This follows two banner years of gains during formidable obstacles.
As a result of current trends, industry professionals are proactively adapting their business strategies, NKBA reports. Design firms have altered materials/finishes used on projects; building and construction firms have limited estimates to 30 days and retailers have scaled back on orders from manufacturers.
“Recessionary Fears” are real. Industry professionals report that ‘fear of recession’ is what keeps them up at night, with 24% rating this as their top concern. This is followed by the availability and cost of skilled labourers (20%) and cost of materials (17%).
Algonquin College Corporate Training has rolled out all seven approved courses and exams required by the Home Construction Regulatory Authority (HCRA) for new-home builders in Ontario.
Home builders applying for their licence can get the training they need to pass their competency exams through Algonquin’s public enrolment schedule, Each of the one- or two-day courses includes the exam fee and is taught by certified industry instructors. Live instruction is considered the best way for knowledge transfer and setting participants up for success for their exam.
“We are excited to be adding to our course offerings in the construction sector,” said Business Development Director Pouya Safi. “Corporate Training has had a long history working within this industry and we are long-time members of the Greater Ottawa Home Builders’ Association and the Ontario Home Builders’ Association. Getting these courses built and approved by HCRA was a natural fit for us.”
Our elegant and durable thin adhered products perfect that rustic chic vibe – whether it’s for fireplaces, feature walls, entryways, or mudrooms. Lightweight and low maintenance, our thin stone options deliver the aesthetic of full bed stone, yet offer the ease of thin stone installation. And, like all Arriscraft stone, our thin products deliver superior natural aesthetics and durability compared to other thin stone.
Last autumn, Tridel’s BOLT program welcomed the Hon. Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development to The Humber, an Options for Homes residential construction site.
The minister met with youth from BOLT, which received a $350,000 investment from the second round of the Skills Development Fund to expand its signature Job Shadowing program and help more underresourced youth start a career in construction.
The immersive experience allows participants to observe and learn from up to 10 different skilled trades and management professionals and discover countless other careers in construction. The program has been successful in creating a new marketdriven pathway into employment in the construction industry.
BOLT is open to youth 17 to 29 years old in the GTA who are facing significant barriers to training and employment. All youth participants receive industry-required safety training, PPE, a stipend, travel subsidy and financial support for any follow-up employability training.
“Whether you have a criminal record or rely on social assistance, there are thousands of young people across Ontario who have been forgotten for too long,” said Minister McNaughton.
Sarah Sinovic has joined Rockwool North America as Director of Public Affairs & Communications. Sinovic will draw on her experience working with and for elected officials to engage policymakers, journalists and communities throughout the U.S. and Canada to advance the stone wool insulation company’s efforts to meet critical climate action targets.
Some of Canada’s top real estate development and accessibility leaders have launched the Accelerating Accessibility Coalition (AAC). The first-of-its-kind coalition challenges home builders to make physical accessibility a greater priority.
The Urban Land Institute’s (ULI) Toronto District Council will serve as the coalition secretariat, leveraging its platform as one of the largest chapters in ULI’s global network to shine a spotlight on this issue and effect change.
At a Nov. 29 event at the World Urban Pavilion - Powered by Daniels in Regent Park, AAC members called on industry organizations and leaders to step up, join the coalition and commit to the learning that will lead to building new housing that is accessible to people of all ages and abilities.
“We hear far too often how Canadians with disabilities still face barriers to safe, accessible and affordable housing,” says Maayan Ziv, Founder and CEO of AccessNow. “It’s time to unlearn the practices that have established generations of inaccessible design and to replace them with inclusive methodologies that reflect the authentic diversity of needs that people with and without disabilities require throughout life.” OHB
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Hybrid systems steamroll ahead, but the 2030 zero-carbon deadline might be unrealistic
BY TED McINTYRESO THERE’S GOOD NEWS and bad news in the Canadian heating and cooling industry as the nation rolls toward its zero-carbon target date of 2030.
The good news is that manufacturers have come up with outstanding heatpump products and technology to help homeowners reduce greenhouse gas emissions while enabling them to do this more efficiently.
The bad news is the number—and the size—of the hurdles faced by the industry responsible for installing those systems.
The first is a familiar refrain for the construction industry: a severe shortage of skilled trades.
“We already don’t have the people
to do the work that our members are facing today, let alone having to re-orient and retrain our gasfitters to become heat pump installers,” explains Martin Luymes, V.P., Government & Stakeholder Relations at the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI).
There’s also a further demand on trades potentially looming, Luymes notes, with the Ontario Human Rights Commission’s call to designate air conditioning as a vital service for all tenants in the province.
“The second hurdle is ancillary to the first,” Luymes says. “We have a lot of contractors who have been doing natural gas heating for decades, and
they’re saying, ‘We’re good where we are.’ And we’re trying to say, ‘Yeah, but look at the timelines and the building code changes that are coming!’ Convincing them that they need to start making changes within their companies is a big challenge. And many of these businessowners are in their late-50s or over 60 years old and are disinclined to even think about reconfiguring their businesses to be focused upon new technology and to not merely accept electrified forms of heating but to embrace them. At the individual and even company level, there might be some people saying, ‘I’m out of this! I’m selling my company.”
Another obstacle is an industry refrigerant transition, Luymes indicates. As part of the United Nations Environment Programme’s Montreal Protocol, Canada committed to eliminating ozone-depleting gases, including CFCs. But as some of those CFC-replacement gases feature very high global warming potential, an amendment to the agreement requires their elimination too. “That transition is starting to happen now, so we have to train all of our existing refrigeration, air conditioning and heat pump installers how to work with these new gases.”
Price is another barrier, albeit not a permanent one. “The average heat pump is probably double the cost of the average gas furnace today, so home builders are being presented with a very costly alternative to a natural gas heating system,” Luymes admits. But as market forces come into play, heat pumps will come down in price and affordable builder-grade models will eventually become available.
And while higher electrical demand will require investment in municipal and provincial grids, Luymes believes that infrastructure costs associated with building a community should drop overall as heat pumps become the norm, given the elimination of natural gas connections, which currently average around $15,000 per home.
So are air conditioners dinosaurs? “There’s a movement in the U.S. to shift to the manufacturing of products that only cool,” Luymes says. “And it’s important to note that an air conditioner is just a one-way heat pump. Manufacturers can make it reversible with a couple of hundred dollars in parts.”
If air conditions are increasingly a thing of the past, heat pumps are the immediate future, Luymes says. That said, “while the heat load requirement for a new code-built home can already be met with a heat pump, hybrid models, which also employ the use of natural gas, will probably still be needed for some time to heat and cool
existing homes while working toward meeting net-zero carbon targets.”
Enbridge Gas is working with the provincial government along these lines to provide an affordable and sustainable energy solution: the Clean Home Heating Initiative. As of Sept. 27, 2022, a limited number of qualified retrofit homeowners in Sault Ste. Marie, London, St. Catharines and Peterborough began receiving government incentives of approximately $3,000 to $4,500 to install an air-source heat pump with smart controls. The deadline
for consumers to apply closes March 31, 2023; however, Enbridge Gas has applied to the Ontario Energy Board (OEB) to offer a province-wide hybrid heating program as a part of its next framework in 2023.
A hybrid setup uses an electric air-source heat pump to heat a home when temperatures are moderate and electricity rates are low. When temperatures are cooler, or at times when electricity rates are at their peak, the system automatically switches to a condensing natural gas furnace, ensuring dependable
Enbridge hopes the hybrid setup of its Clean Home Heating Initiative will go province-wide in 2023.
OHBA thanks Federated Insurance and Rogers for their co-sponsorship of the 2022 OHBA Awards of Distinction.
comfort on the coldest of days. During the summer, the unit draws heat from inside the home and moves it outside, cooling more efficiently than a traditional air conditioner.
“Last year Enbridge Gas conducted a hybrid heating pilot project that focused on 105 homes in London, with five manufacturers and six contractors,” says Octavian Ghiricociu, Energy Conservation Solutions Specialist at Enbridge Gas. “Homeowner interest was high, so the province saw an opportunity to provide additional funding to the program, expanding it to 1,000 homes across four municipalities. We now have eight manufacturers and upwards of 40 contractors trained and offering hybrid heating solutions.”
Gerry Dennis, Project Manager of Energy Conservation Solutions at Enbridge Gas, notes that “if a home has a working furnace that is compatible with an air-source heat pump, the program does not force you to change the furnace—you’re just replacing the AC with a heat pump, which comes in two tiers: an Energy Star version and a coldclimate air-source version. On top of that, we’ve selected two types
of smart controls: one from BKR Energy in Toronto and the other from Napoleon in Barrie. Smart controls balance the time of day with outdoor temperature and energy costs, ensuring that the customer is receiving the most affordable energy to heat or cool their home. It checks in hourly, every day of the year.”
As opposed to many Canadian construction trends that follow a European precedent, this program is unique. “This is Ontario-built technology for our market,” Dennis says. “We’re the only one doing this in North America, and we haven’t seen anything from Europe like this either.”
The project has also involved some noted OHBA building talent. “Prior to our London pilot, we conducted a number of technical pilots including a house built by Doug Tarry (president of Doug Tarry Homes), and Doug absolutely loved it,” says Dennis. “And we used (Building Knowledge Canada President) Gord Cooke for training contractors how to sell hybrid heating.”
Even if initial program savings are minimal, the efficiency of the unit guarantees lower greenhouse gas emissions, the experts note.
The low-profile design of the super-quiet Daikin Fit system requires just 4” of clearance for outdoor installation.
As manufacturers look to keep the temperature comfy inside the home, Schluter Systems is keeping you warm underfoot with an innovative new system. While flooring installers traditionally use uncoupling membranes with floor heating cables to combine the luxury of warm tiles with easy installation, Schluter’s two new peel-and-stick floor-warming membranes— Ditra-Heat-PS and Ditra-Heat-Duo-PS—make life easier for installers. Both products are available in rolls and sheets to accommodate various room sizes. These peel-and-stick membranes feature a pressuresensitive adhesive to bond the membrane to the substrate, replacing the need for thin-set mortar. Simply remove the transparent release film from the fleece side of the membrane to expose the layer of adhesive and embed it into the substrate. The membrane can easily be repositioned until pressure is exerted.
Both products integrate customizable electric floor warming. They are designed to secure the Ditra-HeatE-HK electric floor heating cables and also provide uncoupling, waterproofing, vapour management and support to ensure a long-lasting installation.
Ditra-Heat-PS features a nominal 1/4” (5.5 mm) thickness to minimize tile assembly thickness and reduce transitions to lower surface coverings. Ditra-HeatDuo-PS is 5/16” (8 mm) thick and additionally offers sound control and a thermal break.
Ultra-efficient and whisper quiet, the Bosch IDS Premium Connected air-source heat pump includes an interactive platform, allowing for easy troubleshooting.
The program is also in line with future federal requirements. “According to NRCan’s roadmap, all space and water heating needs to be above 100% efficient by 2035,” Ghiricociu says. “With our hybrid heating system, it meets that threshold. A 95-97% furnace in combination with a heat pump that is 300-400% efficient when used will overall exceed that threshold.”
Mitsubishi Electric also expects further momentum in hybrid heating. “We see the current trend in increased use of heat pumps in general and the use of heat pumps for hybrid heating and cooling as an opportunity to leverage the benefits of both electric and natural gas,” notes Candace Steinberg, Marketing Manager, HVAC Products Sales Division at Mitsubishi Electric Sales Canada. “Using electric helps to reduce GHG emissions, reduces carbon taxes and is a highly sustainable way to heat a home. And gas can provide heating in any temperature. So a hybrid provides the best of both worlds—electric as the primary heating source down to -25C and gas for when the temperatures drop significantly.
Mitsubishi Electric is currently working on bringing a product to market to facilitate conversion to smart hybrid heating and cooling.
Bosch Thermotechnology, for its part, has launched the newest and most advanced addition to its Inverter
Ducted Split (IDS) family, the IDS Premium Connected. Available in 36k and 60k BTU capacities, this airsource heat pump system provides maximum comfort with minimum energy usage and adds an interactive, connected platform.
“It brings the ‘internet of things’ to HVAC in new and important ways,” offers Katelyn Woodling, Manager of Product Management for Bosch Thermotechnology North America. “Contractors and homeowners can remotely monitor the system and data through the Bosch EasyAir app, even without a smart thermostat.”
The Bosch app allows contractors to easily access information for on-site installation, troubleshooting and warranty registration. And homeowners can use it to monitor their energy usage and receive critical alerts, as well as contact their contractors for maintenance and repairs.
The IDS Premium Connected also provides a premium 20-plus SEER energy efficiency, whisperquiet sound levels as low as 56 dBA and easy installation in a small, compact physical footprint. The fully modulating inverter compressor offers 36% to 130% capacity with modulation in 1% increments. In practice, this allows it to precisely match the heating and cooling load while achieving maximum efficiency.
The system also has an impressive heating seasonal performance rating of 10.5 and can provide heating even when outdoor temperatures drop as low as -20C. For areas expecting to deal with temperatures below that, Bosch recommends a Dual Fuel application where the IDS heat pump can be paired with a furnace to provide heating when the compressor can’t start up.
One hybrid product gaining huge traction is the Daikin Fit heat pump system. This smart and lightweight model melds the best features and performance of ductless-style systems with the ability to connect to traditional ducted systems.
“Consumers are starting to ask for it,” says Mike Martino, founder of Martino HVAC—particularly where space and sound levels are a factor. Its low-profile, side-discharge design—requiring only 4” of clearance—offers solutions where a traditional cube style cannot. And its inverter-driven compressor and side discharge deliver an extraordinarily quiet outdoor unit operation, with sound output as low as 55 dB(A). The combination allows homeowners to regain their outdoor space and comfort.
Performance-wise, the Daikin Fit provides a mid-efficiency, costcompetitive system that delivers up to 10 HSPF, 18 SEER and 98% AFUE ratings, with a flexibility that allows it to be used for smart cooling only, gas heat, heat pump or dual fuel.
The system is controlled by the Daikin One+ smart thermostat— the first to offer full, two-way communications with Daikin HVAC systems, giving consumers more control over the air they breathe.
Available from 1.5 to 5 tons, with heating capacity of 40,000-120,000 BTU/h, the Daikin Fit is backed by a 12-year parts limited warranty and a 12-year unit replacement limited warranty.
While hybrid efficiency is the order of the current day, the future is clear for builders, says Luymes. “The only way to be net-zero carbon is to not burn fuels. So it means the eventual end of fossil fuels in new homes.” OHB
THE WORK FROM HOME movement triggered by the COVID-19 pandemic appears to be much more than a trend, raising the question of how home builders should present a live-work residence that can enhance both productivity and family life.
But there are options aplenty, be it from a retrofit or new build perspective. For example, the transformation of the garage into a functional office can provide convenient exterior access. This option is also less resource intensive and less costly since the structure is already part of the home.
In smaller homes or apartments, residual spaces can be used for a unique office setting. Beneath a staircase, for example, can provide a convenient, intimate work area. Large, shallow closets and cabinets can also be converted into an office by adding adequate task lighting, shelving units and a desk, and can easily be hidden away with a sliding door at the end of the workday.
A home with high ceilings could accommodate a mezzanine or loft-style office configuration on the ground floor. Because this design focuses on an elevated component, floor space within the home can be entirely conserved. The mezzanine will give the homeowner the
feeling of an open-floor concept when looking down at the living area below while enjoying more privacy.
If more office space is desired, the basement or attic can be tapped, while offering quiet and privacy. The basement configuration can also accommodate client meetings adequately. The addition of a separate side door leading into a basement office can ensure homeowner privacy. However, outdoor seasonal environmental conditions may be important to consider when selecting the location of the workspace. For example, a basement workspace may need more heating during the winter, while an attic workspace may require an air conditioning system in the summer.
In some cases, a home can accommodate several employees in addition to the owners. How would such place look? Russell and Rame Hruska designed a building that houses their architecture office and family home on a vacant infill lot in Houston, Texas. Their firm, Intexure Architects, moved from a downtown warehouse to an urban neighbourhood. The design combines a studio on the ground floor with living space on the second storey. With the ability to substitute travel time with telecommuting, while incorporating ‘green’ construction principles, they
show genuine commitment to sustainable living in an automobile-dependent city like Houston.
The two-storey home, measuring 2,200 square feet, is minimally decorated and uses locally purchased materials such as steel columns and wooden flooring and ceiling coverings. The office’s 20-foot ceiling and wall-towall windows creates an open space, while providing a work area for up to 12 employees. Spaces like the second-floor materials library were created as multipurpose areas. During the day, the table can accommodate a meeting overlooking the office space below, while in the evening, it can be used as a dining table for the family. The second-floor kitchen also offers flexibility, as one can prepare a meal without interrupting activities in the working spaces.
The COVID-19 pandemic has accelerated a paradigm shift that had already been underway for quite some time. Society has collectively made the return to a variation of the preindustrial lifestyle, where living and work activities are coupled under the same roof.
OHB
Avi Friedman IS AN ARCHITECT, PROFESSOR, AUTHOR AND SOCIAL OBSERVER. AVI.FRIEDMAN@MCGILL.CA
