Smart growth, not no growth.
Author | Saturno, Peter |
Position | Guest Columnist - Ontario Home Builders Association |
The residential construction industry in Ontario has enjoyed a strong and healthy market over the past few years--creating thousands jobs and building homes for families across the province. Housing starts in 2003 reached a 14-year high with 85,180 starts.
Low mortgage rates, increased immigration to the province and high consumer confidence all contributed to strong sales in 2003. The Ontario Home Builders' Association has forecasted 78,000 housing starts for 2004 and we expect consumers to spend big dollars on renovations as well. Canada Mortgage and Housing Corp. notes that about $12 billion was spent in this sector in 2003, with spending expected to rise to over $13 billion this year. Overall, the industry contributes $30 billion to the provincial economy.
While economic indicators continue to be positive, there are some significant challenges facing the residential construction industry and governments. Throughout the province and certainly in Northern Ontario, we are dealing with a significant deterioration in our infrastructure due to a lack of serious financial investment in this sector over the past few years. If we are to continue to prosper, we must find creative ways to ensure strong, healthy infrastructures in our communities, which may include more private/government partnerships in the future.
Another concern is recent greenbelt protection initiated by the provincial government to curb growth in the Golden Horseshoe region of Ontario. A one-year moratorium prevents new urban uses outside existing urban boundaries on rural and agricultural...
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