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CMHC Releases Comprehensive Report on the State of Canada's Housing
OTTAWA, Dec. 11 /CNW Telbec/ - A review of six decades of housing
progress reveals significant improvements in housing conditions in Canada,
according to the Canadian Housing Observer 2006 released today by Canada
Mortgage and Housing Corporation (CMHC). Whether measured in terms of the
improved features and physical condition of their homes, or increased rates of
homeownership, Canadians have been the beneficiaries of substantial
improvements in their housing.
In its annual review of the state of Canada's housing, the Observer noted
that the housing sector made a significant contribution to the Canadian
economy in 2005, with strong employment growth, rising incomes and low
mortgage rates fuelling sustained housing demand and high levels of new
construction, resales, renovation and mortgage lending activity.
"The Observer is a leading source of comprehensive and authoritative data
- an indispensable tool for anyone with an interest in housing," said
Karen Kinsley, President of CMHC. "For a wide range of users including
planners, policy makers, researchers and builders, it provides in-depth
information about Canada's housing needs and challenges."
The Observer presents a detailed review of housing conditions and trends
in Canada and the key factors influencing them. Marking CMHC's
60th anniversary, the Observer includes a special feature on housing progress
in Canada, tracing how Canadians' housing needs have evolved over the past six
decades and some of the notable achievements that have been recorded along the
way.
The Observer also deals with the challenge of sustainable development and
how communities are renewing existing neighbourhoods through infill
development, adaptive reuse and conversion, redevelopment of brownfields, as
well as the use of secondary suites.
This year, CMHC has expanded the on-line data resources that accompany
the Observer. These provide detailed information on housing conditions and
trends in Canada, provinces and territories, and major urban centres. The
publication and related housing statistics are available on CMHC's web site
www.cmhc.ca.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national
housing agency for more than 60 years. CMHC is committed to helping Canadians
access a wide choice of quality, affordable homes, and making vibrant and
sustainable communities a reality across the country.
A backgrounder with Key Findings is attached.
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Key Findings
Demographic and socio-economic influences on housing demand
- Strong employment growth, rising incomes and low mortgage rates
continued to fuel housing demand in 2005.
- The modest increase (3.3 per cent) in median real after-tax household
incomes between 1990 and 2004, masks divergent trends for owners
(up 4.5 per cent) and renters (down 4.8 per cent).
- The strength of housing construction in recent years has occurred in
spite of a slowing in population growth and aging of the population.
- Seniors are a growing force in the housing market. More than one in
eight Canadians were aged 65 or over in 2001; this share will almost
double in the next 15 years.
- The growth rate of the Aboriginal population was 22 per cent between
1996 and 2001, significantly outpacing that of non-Aboriginal Canadians
(3.4 per cent).
- With population growth slowing, and immigration typically in excess of
200,000 per year, net international migration now accounts for
approximately two-thirds of population growth in Canada.
- Nearly 60 per cent of new immigrants interviewed under the Longitudinal
Survey of Immigrants to Canada said that they plan to buy a home in the
next few years.
Market developments
- The new home market remained buoyant in 2005 with housing starts
registering their second strongest showing in the last 18 years. With
225,500 starts, 2005 marked the fourth consecutive year in which starts
exceeded the 200,000-unit threshold.
- Existing home sales reached a fifth consecutive record high in 2005,
with the average MLS(R) sales price up more than ten per cent.
- Renovation spending set a new high in 2005, at billion.
- The rental market stabilized in 2005 with most major centres recording
only modest changes in average rents and vacancy rates.
- Rental completions across major centres were up marginally for the
twelve months to September 2005, and condominium completions rose close
to 30 per cent to almost 49,000 units.
Housing finance
- The value of mortgages approved in 2005 was up 10.9 per cent to
2.1 billion. The average value of mortgage approved was 5,000, an
increase of 8.8 per cent from 2004.
- The value of mortgages outstanding averaged 4 billion during 2005,
up .7 billion from the average during 2004.
- The posted five-year fixed mortgage rate averaged 6.0 per cent in 2005.
The spread between the five-year fixed and the open variable rate
narrowed to 1.3 percentage points by the end of 2005.
- Through mortgage-backed securities, investors held 16.3 per cent of
average mortgages outstanding in 2005, up from 14.4 per cent in 2004.
Banks held 60.6 per cent of mortgages, down from 62 per cent in 2004.
- About 27 per cent of people obtaining, renewing or refinancing
mortgages arranged them through brokers, similar to the percentage in
2004 but up from 14 per cent in 1999.
In your neighbourhood: intensifying and renewing existing neighbourhoods
- More than 80 per cent of Canadians live in urban centres, making Canada
one of the most urbanized countries in the world.
- Since the mid-1940s, most development has occurred at the edge of urban
areas in less compact forms on "greenfield" lands such as farms and
forests.
- Intensification projects often face additional costs but municipalities
can assist in various ways.
- Local concerns about infill developments are frequently a challenge,
but one that can be addressed by early public consultation.
- The strong market demand for infill accommodation is making developers
and municipalities more creative in adding dwellings in existing
residential areas.
Housing outcomes by income group
- Housing consumption patterns are strongly influenced by a household's
ability to pay for housing.
- Data from the 2001 Census reveal that the lower the income, the higher
the proportion of one-person households, lone-parent households and
seniors.
- The proportion of households owning their home varies directly with
income.
- The lower a household's income, the older and smaller its dwelling is
likely to be, and it is more likely to be an apartment than a single-
detached home.
- The proportion of income spent on shelter is significantly higher for
households in the bottom income group, where about 60 per cent of
households were in core housing need.
- On average, these households in core housing need paid close to half
their monthly income on shelter.
60 years of housing progress in Canada
- The year 2006 marks the 60th anniversary of the founding of CMHC.
- Each era of housing in the past six decades has had its own unique
challenges and opportunities, calling for distinct responses from
government and industry. The results of these efforts are reflected in
the housing conditions that Canadians currently enjoy.
- In 1941, many Canadian homes lacked basic indoor plumbing features such
as piped running water (39 per cent), flush toilets (44 per cent) or
baths or showers (55 per cent), features that are almost universally
present today.
- Over the same period, marked improvements took place in the state of
repair of Canadian homes and in levels of homeownership. Homes in need
of major repair declined from 27 per cent to 8 per cent. The proportion
of households who own their homes increased from just over one-half
(57 per cent) to two-thirds.
- Canadians are widely acknowledged to be among the best housed in the
world today. |
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