New businesses helping to improve strengthening home building market

Single-family home starts are close to being on par with last year’s numbers with 25 starts since January, however it’s the multi-family market that’s seen a big jump in 2018.

There were 17 starts for multi-family projects such as condos, duplexes, and apartments in the month of May alone, shattering 2017’s year to date total of just 10.

Brooklyn Kalista, past president with the Medicine Hat Real Estate Board, said it will take some time before the buying market sees an impact though.

“At this point necessarily, we haven’t seen any adjustment in regards to the new builds and how it’s reflecting on our re-sale residentially,” said Kalista. “Who’s to say what it’s going to do for the next six months of the year?”

Much of the activity is happening in the south end of the city, primarily in the Hamptons and Saamis Heights neighbourhoods, with increased activity recently in Ranchlands.

Ruff said a big reason for the spike is due to Hut 8 and Aurora Cannabis setting up shop in the ‘Gas City.’

“We have more opportunity this year because of the recent announcements that the City has brought those two very successful businesses in,” he said. “And, we’re hoping that will generate some good product from them, and be able to build good product that they’ll purchase.”

Numbers aren’t yet know regarding the impact these two businesses will have on the Medicine Hat housing market.

However, GM of Planning and Development Services with the City Kent Snyder said they’re expecting it to be significant.

“We know that there will be quite a jump within activity, probably both in multi [family-housing] and single-family units,” said Snyder.

According to Kalista, the rental market could also pick up steam and fill vacancies with some employees looking for short-term housing.

“I think we’re going to see a peak in the rental market, definitely a decrease in vacancy there,” she said. “And then in turn, it’s going to kind of slowly, hopefully post prices a little bit higher in our single-family, residential re-sale.”

A housing crunch isn’t expected in the coming months due to the new businesses and workers, however the City said a crunch could be possible if additional large-scale businesses come to Medicine Hat.

Ruff added the home building market is getting stronger and these new businesses go a long way towards making that goal possible.

“I think it’s going to be great,” he said. “I’m not sure where they’re pulling their people from. But, if they pull them from other than Medicine Hat, you’re going to see probably some of the higher-end houses start selling very quickly.”

Both the City and the Canadian Home Builders Association of Medicine Hat are also expecting single-family builds to pick up again in either September or October.

by Scott Roblin

New businesses helping to improve strengthening home building market

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