The year ahead
What’s in store for new Ottawa homes in 2018
Ottawa’s builders and new-home buyers are set to deliver one of the most exciting years of activity in recent memory. Some existing trends will continue and some new technologies will accelerate. The movement from quantity to quality will continue as new-home buyers increasingly favour smaller homes with higher quality finishes and technologies. Following the Second World War, the average new home was 1,000 sq. ft., and over the following 30 years only increased to 1,075 sq. ft. before exploding and peaking in the mid-2000s at around 2,300 sq. ft. Increasing land, construction and energy operating costs then intervened and have resulted in today’s average new home size decreasing to 1,900 sq. ft.
One offsetting factor to decreasing home sizes has been an increase in finished basements, and this trend will continue to accelerate. The incremental cost to provide full-height, high-quality finished basements is small compared to constructing new space above-grade, and this is the type of efficient “extra” that buyers will lean toward. The movement toward better utilizing space in existing post-war homes will also drive more inner-city renovation work, since it is now cost-effective in many cases to lower an existing basement to achieve the much-needed ceiling height. Whether it’s a new or existing basement, the addition of technologies such as under-slab insulation and hydronic in-slab radiant heating creates a whole new paradigm of basement comfort and quality.
The drive toward energy efficiency will also continue with today’s new homes already almost 90 per cent more efficient than an Ottawa home of the mid-’80s. The next step will be “net zero” energy, and an increasing number of new homes will be built to meet this standard going forward. Net zero homes use a combination of active and passive technologies such as solar panels and well-insulated building envelopes to ensure that on average, over the period of a year, the home does not consume any external energy. The capital cost to build such homes is constantly declining, while the electrical and natural gas energy sources to heat homes are constantly increasing. This means that over time, net zero energy homes will become increasingly cost effective.
The “smart” home that we have been talking about for years is finally here, and another exciting aspect of the energy efficiency story is about all of the technology that is being created to more efficiently utilize a new home’s main operating systems. Highly insulated window blinds that automatically open and close based on a computer analysis of external temperature and sunlight are increasingly popular. “Nest” thermostats that learn a user’s lifestyle and make constant adjustments are advertised as saving 10 to 12 per cent on heating costs and 15 per cent on cooling. Furnaces will be smaller than ever before and occupy less space. On-demand hot water heating systems are now standard in almost every new home. Heat recovery and ventilation units are also standard on every new home and ensure a constant supply of fresh air.
Over the past decade, builders have been able to open up today’s new homes with the use of longspan truss joists, and this trend will also continue. This open concept is not only practical in terms of such operating considerations as air movement, but also provides a brighter, more spacious living environment that allows for a flexible lifestyle that can be altered depending on the wants and needs of residents.
And all of this will be available at a price that is extremely reasonable compared to most markets in southwestern Ontario. Ottawa home prices have not increased at a pace even close to that of other markets, although some believe there are indications we are about to begin catching up. A high quality new home in Ottawa is less than half the price of the same accommodation in the Greater Toronto Area. The federal government’s deficit reduction budget hit Ottawa’s economy hard and resulted in several slow years, but the market experienced a powerful rebound in 2017. This recovery is expected to continue throughout 2018 and be accompanied by significant price increases. Townhouse production will continue to dominate, followed by single-family homes. A continuing slow recovery in the condo market is expected. South Ottawa will continue to dominate the new-home market followed by the west end and, finally, east Ottawa.
There is a wide variety of new home choices available in every geographic sector of the region. It’s hard to imagine a better time to be looking at buying a new home in Ottawa.
It’s hard to imagine a better time to be looking at buying a new home in Ottawa.