Houses costing more to construct, builders say

The cost of building a home in Windsor is probably one of the cheapest in all areas of Ontario.

“I think those factors are very appealing to people, whether it’s someone who’s downsizing, in retirement or even starting out.”

Thomas Haines, head of the Statistics Canada housing prices unit, said builders in Windsor report higher construction costs and improving market conditions.

“Builders are telling us that the cost of building a house has actually increased, and through the demand conditions and the market conditions, they’ve increased the prices accordingly,” Haines said.

Market conditions refer to the state of competition in the market.

“This can be either in terms of how many buyers are looking to purchase new homes, so an increase in demand, or how many new homes are currently available for sale, so an increase in supply,” said Haines.

“Usually one follows the other. There’s a high demand, so if people are looking for new homes, supply will follow.”

Local builder Gino Piccioni, president of Timberland Homes, said prices for new homes are going up because of the strong American dollar, increasing land prices, municipal development charges and the growing cost of skilled labour.

Piccioni said demand is also driving up prices.

“The cost of building a home in Windsor is probably one of the cheapest in all areas of Ontario,” he said. “Because of that, demand is very strong here.”

John Evola of Evola Builders said he built more than 45 singlefamily homes and town homes last year.

“The last couple years have probably been the best years ever,” he said. “The Windsor market is a great market right now.”

The market is especially good for people selling their existing homes to purchase a new build, Evola said.

He also said there has been a recent influx in people moving to Windsor from out of town.

“A lot of people were probably born and raised here, then went to work out of town, and are coming back to settle down here.”

The Windsor-Essex County Association of Realtors reported 1,104 residential listings at the end

of May 2017.

The next National Housing Price Index for May 2017 will be released in July.