Industry reports stellar growth.

• Author: Quesnel, Joseph
• Position: Special Report: Construction

Economic growth and low interest rates are creating such a boom in home construction in major Northern Ontario centres that some former residents of the North are moving back.

Data obtained in June from the Canada Mortgage and Housing Corp, (CMHC), the federal housing agency that monitors housing trends across Canada, reveals that the number of single family, detached housing starts in Northern Ontario cities, particularly Sudbury and Thunder Bay, is growing every year. The data also shows no signs of this trend slowing in the future.

According to Warren Philp, a CMHC market analyst for Northern Ontario, the first quarter of single-detached is 24 per cent ahead of the last quarter in Sudbury, and nearly 40 percent ahead in Thunder Bay. North Bay and Sault Ste. Marie also saw above-average growth, albeit by a smaller percentage. Only Timmins had below average growth.

A lot of the growth, however, can also be attributed to local conditions.

Celia Teale, a planner with Sudburybased Dalron Construction, says growth in Sudbury can be explained mainly by significant new projects and hiring within the region. In the case of Sudbury, a new $440-million Nickel Rim South project undertaken by Falconbridge has created new jobs that require the building of new homes. Spin-off opportunities in mining-related ventures, such as mining equipment suppliers, are also fuelling growth.

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"A lot of this growth is coming from out-of-town companies coming to Sudbury," Teale says.

Al Harrigan is the president of the Sudbury and District Home Builder's Association, a group representing the interests of regional construction companies and contractors. He says growing employment opportunities allow Sudbury residents to feel at ease spending again.

"When the mine is doing well, they spend. They're not worrying about the future and whether or not they'll have a job in the future," Harrigan says.

Most of this new mining growth, Harrigan says, is being invested in buying and improving existing homes.

Growth is not only coming from mining, however, according to Teale of Dalron Construction. The addition of a new general hospital, as well as the building of the new Northern Ontario Medical School, is bringing more demand for housing.

The addition of housing is also developing related industries at the same time, according to Teale.

"With every new home being built, there is a need for carpeting, appliances and flooring. All this stuff has to be...