Interest rates, inflation put homes out of reach for many, summit hears
Home ownership remains out of reach for many people as interest rates, inflation and other issues affect the real estate market, a regional housing summit has heard.
Chatham-kent Association of Realtors members joined Mayor Darrin Canniff and other area politicians at last Friday's Western Ontario Housing Economic Summit in London, which saw expert panellists discuss a wide range of issues, a release said.
The need for more waste water and other infrastructure spending by Ontario municipalities, particularly for emergency preparedness, was a key message.
Canniff highlighted the substantial financial commitment required.
“In Chatham-kent, we're facing an estimated $1.5-billion investment over the next decade just for new infrastructure and repairs,” he said in a release. “This is indicative of the hundreds of billions of dollars that will be necessary provincewide in the coming years to address waste water challenges.”
MPP Matthew Rae (Pc-perth-wellington) stressed the importance of proactive investment in waste water infrastructure, particularly upgrading pumping stations to increase capacity.
“Upgrading waste water infrastructure, such as pumping stations, is crucial for accommodating growth,” he said in the release. “Investing up front in high-quality infrastructure not only helps expedite housing construction, but also ensures resilience against the impacts of climate change, benefiting future generations.”
Canniff and Rae cited waste water infrastructure's key role in sustaining communities and mitigating environmental risks and urged participants to make longterm planning and investment in waste water systems a priority.
Association agent Carson Warrener shed light on significant shifts in Canada's housing market.
The emergence of single-family homes as a national and global financial asset has been a historic milestone in Canadian real estate, he said.
“Recent trends have seen an influx of out-of-town speculators, accounting for up to half of our sales,” Warrener said.
“While discussing supply and demand is commonplace, it's crucial to examine the underlying assumptions,” he added. “The identity of the end user varies, particularly in smaller communities like Chatham-kent, where homes were historically undervalued.”
Post-pandemic price increases have pushed the average home price to $400,000, but “wage growth has not kept pace, resulting in significant affordability challenges for residents,” he said.
He highlighted a unique situation in Chatham-kent, where some 700 serviced residential building lots remain undeveloped.
“Despite having ample supply, a third of our listings consist of new homes that have been standing vacant,” Warrener said.
As the real estate landscape evolves, he stressed the importance of addressing affordability concerns in smaller communities alongside broader supply issues.
“While the housing market grapples with supply challenges, it's imperative to explore strategies to enhance affordability,” he said.