Only 20 single detached homes built in Medicine Hat – 2019 numbers show

The Municipal Planning Commission (MPC) meeting was on Wednesday to discuss the development over the last year.

The city says the drop is also due to Aurora Cannabis receiving their own accreditation one year ago in safety code disciplines.

So, Aurora did not require city permits and reported their construction value separate from the city.

However, Councillor Brian Varga and MPC Chair says the city estimates Aurora’s work to be in the $20-$50-million dollar range -which is then comparable to 2018 numbers.

Meantime, affordability and cautious investment seem to be the reasons why new single-detached home builds are down in Medicine Hat, according to Varga.

He says an uncertain economy is also part of why there have only been 20 homes built last year.

“Just the way the economy is right now with people in Alberta and the oil & gas industry being so low is what it is and gas and oil always fluctuating up and down. The depressed market in that and that’s worldwide. Just part of the assets that we have that aren’t making a lot of money at the moment.”

Varga adds, “There are a few more multi-family homes that are being built now in our city. And hopefully, that’s because of what might happen in the future with Aurora.”

When talking to the Canadian Home Builders Association (CHBA) of Medicine Hat they say the qualifications for building new homes make it tough.

Realtor and CHBA director Garry Ruff says the stress test rate is sometimes 2-2.5 percent higher than the existing mortgage rate.

“I think one of the key important things that people have to realize and I know that the builders know it is that mortgage stress test the government brought out last year has probably taken 25 percent of the buying capacity away from people when they consider new home builds.”

CHBA President Aaron Brost says,“Also the spread between the existing homes to what it costs to build a new home, the replacement value has spread somewhat. So often what a person may be able to sell their existing home for to get into a new one – that gap has spread.”

Ruff says the Canadian Home Builders Association has its 2020 parade of homes in September.

In the meantime, they hope to get 8 or 9 new homes up for show.

He says that gets the momentum going for people to build new houses.

by Chantal Wagner

Only 20 single detached homes built in Medicine Hat – 2019 numbers show

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