The homebuilding industry went through its best worst year ever in 2020, and 2021 is shaping up to be more of the same.

So hot, in fact, there’s there talk of changes to mortgage regulations and other measures in the new federal budget to cool the market.

The challenge with the GTA, specifically, is supply and cost – there’s not nearly enough of the former, and that drives up the latter. Combine this with immigration numbering in the tens of thousands every year, the result is routine double-digit price growth.

It all amounts to what some call the proverbial elephant in the room.

“Over the past year, record-breaking home sales and price increases have provoked urgent discussions on how to address the chronic undersupply of housing in the face of skyrocketing demand,” Mike Collins-Williams, CEO of the West End Home Builders’ Association, told NextHome. “With each passing year, homeownership, especially for younger generations, is becoming even more unattainable.”

At least part of the answer will require access to more land and expanding highways and other infrastructure.

“That’s why our association and the industry agree that the region requires a new transportation hub such as the proposed Hwy. 413,” says Dave Wilkes, president and CEO of the Building Industry and Land Development Association.

We invited a select group of homebuilding executives to share their insights on the state of the industry, affordability and how their company stands out.

Zev Mandelbaum

President and CEO
Altree Developments
altreedevelopments.com

One thing we all learned during this pandemic is that you spend a ton of time in your home, and above all else, people want to feel comfortable and safe. Before, homes were about being connected to a larger community or city, but now they’re an escape from the world – a sanctuary.

Our clients want to be next to greenspace more important than ever. Whereas before, most projects were built around subway lines and everything was about connectivity and transit, now the most important amenities are outdoor greenspace and nearby practical retail. In terms of unit sizing and layout, we’re seeing increased demand for “a space within a space.” Before a lot of people preferred open concept, but now they want divisions and boundaries. The idea of a den or study has become very prevalent, and unit layouts are centred around this concept.

Major cities are always going to see high demand and prices, and the only way to mitigate this is to drastically increase supply. Toronto is a fantastic place to live and is going to continue to grow and attract more people once we get the pandemic fully under control. Increasing supply is key to limiting prices. Creating more housing and increasing density would go a long way in helping make housing more affordable.

Altree is all about authenticity and being present. We’re able to create the homes and spaces our clients want because we understand our product better than anyone else. All our buildings are created with the intent of an end-user, and solely with that end user’s experience, in mind. We’re about developing buildings and creating neighbourhoods in ways that are transformative to complement and enhance the community. We approach every idea with the goal to make it a Toronto landmark.

Vince Santino

Senior Vice-President of Development
Aoyuan Canada
Aoyuan International
aoyuaninternational.com

Traditional single-family homes and freehold townhomes are becoming more and more scarce, simply because demand has really outstripped supply. We have, however, noticed that there is a price sensitivity ceiling for buyers who would otherwise purchase a single-family dwelling or townhome, and this has turned their attention to two- and three-bedroom condominiums. Though it seemed, early in the pandemic, that buyers were looking at more space outside the city core, preference was still focused in areas where they could still have easy access to public transit and TTC hubs outside the 416, thus protecting their choice to be able to get back into the city when we eventually get past COVID. More homebuyers are trending toward condominiums in areas that offer a wide range of amenities.

To address affordability, we need shorter development approval times. There simply isn’t enough supply being made available. It’s really important that municipalities, developers and all regulatory agencies recognize this and work together to relieve the bottleneck, so that supply can catch up with demand, and long-range planning can again become the focus, as opposed to applying reactionary approaches. This is paramount in these times, as Ontario and the GTA continue to be a destination for so many around the world to come and settle and to work and raise their families.

At Aoyuan, since we started out in the GTA in 2017, our focus has been to provide homebuyers with the opportunity to live in complete communities. It’s important that they have choice, not just in the suite they reside in, or the amenities that accompany them, but also choice in terms of transit and mobility, shopping, schools and parks, so they can live the best possible quality of life. We truly are committed to building a healthy lifestyle for our valued

Frank Spaziani

Vice-president
Kylemore
kylemorecommunities.com

As the impact of the current pandemic was being felt, Kylemore was finalizing our home designs for Angus Glen South Village in Markham. Our wellness initiative was implemented, and we were well along the path to delivering features and finishes that contribute to the health and well-being of the residents. Being able to modify the layouts, we came up with elements to include in as many of the designs as possible. For example, built-in flexibility for spaces to serve different purposes as a family grows and changes. Spacious gathering areas, lots of storage options throughout, generously proportioned bedrooms with ensuite or shared ensuite bathrooms, and rooms dedicated to yoga/meditation and fitness. Plans that accommodate work and study from home requirements. We know our buyers are looking for larger homes and are embracing our customization options, than they may have purchased two years ago.

Home prices in prime locations closer in the GTA will be higher, and it may mean that buyers have to travel a little farther to find an area that’s affordable for them.

The pandemic will have a long-term effect, in that many people will be able to continue to work from home. Where less commuting is required, this could be a benefit to those seeking a home further from the core.

Since 1997, Kylemore has offered homeowners the highest standards in architectural design, craftsmanship and community amenities. Our focus has always been a niche market, we build a finite number of luxury homes in desirable communities. The excellent locations, designs and built-in features and finishes we include mean our homes come at a premium price we know may not suit every buyer. We are building “in place,” meaning that Markham is where we are headquartered, it’s our backyard and where we will be for the foreseeable future. This became abundantly clear this past 14 months when our team was able to maintain standards and quality for homebuyers, despite adhering to changing and challenging conditions.

Brian Brown

Principal
Lifetime Developments
lifetimedevelopments.com

I am proud of how our industry and how our company, specifically, has adapted and learned from this pandemic. It has challenged us in many ways, but it has also made us work together and set the bar for what we deem as best practices. No matter the industry, successful companies learn to adapt and change. The development sector is a prime example of one that has learned and pivoted quickly.

Demand for homes continues to be at an all-time high, and homebuyers should always look to the future and not just at the current situation. The challenges of today will be overcome, and the market will be as strong as before because of low interest rates, immigration and the strength of our city. Toronto is a world-class city with a ton of potential for future growth and meaningful development for the betterment of our communities.

The best solution to address affordability is to increase supply, which in turn means streamlining approval processes and supporting larger, taller developments where appropriate. This is a complex issue with many stakeholders involved, and it necessitates the private and public sectors working together cooperatively. There's also a big opportunity to improve government programs to support those in the private sector that want to build affordable housing.

We have learned a great deal over the last 14 months about what type of company we are and what we want to be. I am very proud of how we have reached beyond our business to provide aid and support to those suffering the most through the pandemic, through our See You Soon Toronto initiative. Not only did we raise money to buy meals from struggling restaurants, but we also made sure these meals were provided to those struggling to make ends meet, and equally important, to show our gratitude to front-line workers. This time has also allowed us to re-examine what priorities people will have in the future and what they will value most in their homes.

Deena Pantalone

Partner
National Homes
nationalhomes.com

Our philosophy is that “You are the Blueprint,” and we keep close communication with our homeowners and potential customers to understand clearly what their needs are. One way we keep track of the changing market is through our YOUprint Surveys. What we’re finding recently is that home office spaces are now a key feature for almost all buyers. People are now asking for sanitation centres at the front door to hold masks and disinfectant. And, of course, the need for outside private space is more important than ever.

In terms of affordability, we’re working on so many creative ways to keep home prices down. Design is one important way that we can give people better functionality in their home, and make smaller spaces live like a larger home.

Our research division is constantly testing new products and materials to find ways to improve the homeowner’s experience and to save them money at the same time. But initial cost is only part of the story. Our Panergy pre-fabricated wall system can save significant amounts of energy and make owning a home less expensive in the long run. It reduces CO2 emissions by three times and can cut your energy costs by (up to) 20 per cent.

At National, you are the blueprint. We start with you and your needs. Then we design homes to suit the way you live. We believe that a home should give you what you truly want. That it should make your life easier. More beautiful. It should be designed to suit your lifestyle. That is why the needs of the customer are the driving force behind every home we build. Because, here at National, it isn’t about all the great features we put in. It isn’t just about our quality or our service. It’s really all about you.

Anson Kwok

Vice-President,
Sales & Marketing
Pinnacle International
pinnacleinternational.ca

Increased feedback from purchasers and prospects has helped reinforce Pinnacle’s efforts to create timeless product that focuses on terrific locations and functional layouts. Our spacious two- and three-bedrooms with larger kitchens and full-size appliances in Toronto and Mississauga have been really popular.

We need to keep on building more housing. Regardless if it is single-family or highrise, more supply is required for our population growth targets. The industry and municipalities have to continue to work together to streamline the approval process. The length of time it takes now is not helping anyone.

Pinnacle has three developments that will be moving in this year, along with three others under construction. We have the perfect opportunity for the end-user market, as we have two- and three-bedroom suites ready to move-in this year.

Scott McLellan

Senior Vice-President
Plaza
plazacorp.com

We are seeing more connection with a home office, and more demand for the space necessary, as well as for one-bedrooms plus den suites than simply a one-bedroom.

There is a greater need for more spacious amenities with Wi-Fi lounges, where people can work or socialize as an extension of their living space.

We are doing the majority of our sales virtually through the Docusign program, and have made sure that our website and digital marketing have been at a higher level. Docusign in most cases is the new sales office, the new norm. When we launched King West, we found that people still wanted the physical experience of visiting the sales office to touch and feel the vignettes, see the scale model and handle a brochure, even after they have already purchased their suite – all with the necessary social distancing.

In terms of affordability, the government process needs to change. People need to understand the concept of inclusionary zoning regarding affordable housing, and how the remaining units have to carry the cost of affordable units.

It’s about supply and demand: Politicians need to encourage more density along subway lines to add more supply. The more supply, the more the demand can be met and the more the cost can be controlled.

Plaza won the Tarion Home Builder of the Year for 2020. This is largely a result of our outstanding customer service and consistent customer communication.

Despite the pandemic, we closed three buildings this past year, with minimal issues.

Samson Fung

Vice-President, Marketing
Tridel
tridel.com

The industry is shifting its focus to health and well-being in general, whether through building design or a diverse amenity offering. More than ever, homeowners are prioritizing access to outdoor space. We pivoted to this a while ago, providing not only private balconies and sizable terraces, but also public spaces such as outdoor dining lounges, barbecue areas, courtyards or community gardens.

Developers are forced to be innovative, to deliver new supply and diversify their product offerings in terms of locations, price points and suite types to appeal to different audiences. Additionally, we continue to explore innovations in construction that allow us to accelerate timelines and keep material and labour costs manageable.

After being in the homebuilding industry for more than 85 years, this isn’t the first economic challenge Tridel has weathered. Through each recession or epidemic, we have learned to adapt and grow. We are resilient and confident that our team will deliver the homes our purchasers have been looking forward to, with the unsurpassed quality they expect.

Angela Marotta

Director of Sales & Marketing
Solmar Developments
solmar.ca

It has been a very reflective time for all of us, with so many challenges and changes. What buyers have perceived to be of value a couple years ago is different today. Geographic areas and space, as it suits their lifestyle today, is very important. Purchasers are emotionally connected to the community and are experiencing a deeper connection with their indoor and outdoor surroundings. We are designing our homes to allow for flexible space with a larger kitchen footprint. With many people working from home or moving to a more hybrid combination, they are looking for rooms that are multipurpose.

We cannot control the undeniable increases in the cost of construction over the next two years. Costs of materials and labour are both up substantially, so, inevitably, there will be an increase in new home building prices. Affordability has always been a topic for discussion, but we are still much more affordable than most metropolitan areas. There is a lot to offer here, with diverse multicultural communities and great education systems, as well as new development that will have areas designated employment to facilitate sustainable economic growth in those areas.

Our condo towers, The Edge, in Mississauga, have outdoor terraces and pavilions that were designed for the community of residents to share and enjoy. The podium suites in our third and last tower, Oro at Edge, have been designed with larger outdoor terraces and covered balconies, outdoor seating, tables and loungers to allow residents to enjoy these spaces and interact.

Upcoming highrise projects in Vaughan, Park Avenue Tower 3 and Bellaria Phase 2, are in process of design, and we will continue to listen to buyers to incorporate what they want. Ultimately, we design with the buyer in mind and ensure it supports a desired quality of life. It is always the driving force behind everything we do, together with a focus on customer service that extends beyond their closing/occupancy date.