London – the 'Forest City' expected to get a boost from 'Green' economy

It’s rather fitting that London, Ont., known as the Forest City for its balance of city and nature, is about to get a serious economic boost from a major Green project in a neighbouring community.

Not that this locale of more than 530,000 residents – good enough for Canada’s 11th largest city – needs a helping hand from outside sources. Indeed, it’s had its own long-standing strength in the education, healthcare, manufacturing, financial services and information technology industries.

But the local economy is about to get a major boost: In March 2023, Volkswagen, Europe’s largest automaker, announced that subsidiary PowerCo will establish an electric vehicle battery manufacturing facility in St. Thomas, just 27 km away. The plant will directly employ more than 2,000 workers, but auto sector experts suggest suppliers and related industries could create another 5,000 jobs in the region.

It stands to reason, then, that London, a city boasting millions of trees, almost 500 parks and more than 330 kms of trails, will likely be among the beneficiaries of a project expected to spur economic growth while supporting clean energy.

Meanwhile, the healthcare and education sectors remain steadfast, with the University of Western Ontario and Fanshawe College, and Victoria, University and St. Joseph’s hospitals among the top employers.

Strong economic performance comes partly from a good natural location at the junction of Hwys. 401 and 402, connecting it to Toronto, Windsor and Sarnia, with additional easy access to border crossings at Detroit-Windsor and Port Huron-Sarnia. Locally, the city is well served by local bus and train stations, as well as the London International Airport.

LOCAL LEADERSHIP

London elected new leadership last fall, as deputy mayor Josh Morgan became the city’s 65th mayor with more than 65 per cent of the votes, after incumbent Ed Holder retired.

And like many municipalities in the province, housing is a major issue facing London. In February, Morgan tabled the City’s Housing Pledge, which laid out its plan to accelerate the supply of 47,000 units by 2031.

To meet this ambitious target, the City will develop a Housing Supply Action Plan in partnership with sector stakeholders including local and regional developers, homebuilders, infrastructure builders, real estate sector representatives and public sector agencies and private businesses that build housing.

“The plan will be developed through a three-pillar approach that will ensure a foundation of financial sustainability, an enterprise-wide system that is resourced to increase planning and approval requirements, and a shared accountability model that will set out clear metrics for each of the City’s key partners that will be monitored and reported to Council,” Morgan outlined. “Our plan will also incorporate the critical contributions that the creation of new affordable housing units makes in achieving greater housing affordability across our community. As such, London’s existing commitment to build 3,000 new affordable housing units by 2026 will be incorporated into the Housing Supply Action Plan.”

HOUSING AFFORDABILITY

Also like many municipalities in Ontario, the housing market has performed atypically over the last year. Generally favourable for its much greater affordability than larger markets closer to the GTA and Hamilton, pricing has been feeling the squeeze.

According to the latest Royal LePage House Price Survey for the fourth quarter of 2022, the aggregate price of a home in London decreased 8.1 per cent year-over-year to $637,700. On a quarterly basis, the aggregate price of a home in the region decreased 1.8 per cent; the third consecutive quarterly decline. This data includes both resale and new build transactions.

Broken out by housing type, the median price of a single-family detached home decreased 8.2 per cent year-over-year to $652,500, while condos decreased 7.7 per cent to $378,900.

“As is typical during the final weeks of (2022), London home showings and sales slowed,” says Adam Miller, broker and manager, Royal LePage Triland Realty in London. “We have seen a healthier number of properties coming online as of late, providing buyers with more choice. Homes are also sitting on the market longer – about 30 days on average – which is a steep increase from a year ago. I expect inventory will keep growing at a steady pace as spring approaches, but this will be dependent on the trajectory of interest rates.”

Miller notes that higher borrowing rates in 2022 were largely responsible, as buyers and sellers paused to assess the market. The rental market remains hot, as sidelined buyers opt to delay their purchasing decisions amid rising rates and re-evaluate their home buying budgets. Once inflation comes under control and interest rate increases subside, he anticipates that consumer confidence will improve.

“The spring market will likely be healthier compared to last year, with more balanced and less competitive conditions,” he says. “Should interest rate changes plateau in early 2023, it will bring rapid, positive change to the incoming spring market as consumers feel a sense of stability.”

NEW HOME DEVELOPMENT

Despite such short-term market challenges, developers continue to bring new home offerings to the London area.
Doug Tarry Homes, for example, has been committed to St. Thomas and the surrounding areas since 1954. The company is dedicated to providing a high-quality, personalized homebuying experience, and its in-house design services are a great example of this commitment.

Similarly, Sifton Properties (which is celebrating 100 years in business) has a new retirement community on offer in West London – Riverstone Villas. Located in the West 5 area, Riverstone Villas offers a vibrant lifestyle with the modern retiree in mind. Each one-floor home provides a mix of independence and care-free living, with exclusive access to premium amenities that include a variety of social clubs and activities.

LIVABILITY

For London residents at large, the city offers two large-scale shopping malls – Masonville Place and White Oaks Mall – nine major parks and gardens, many of which run along the Thames River and are interconnected by paths and trails. It is also home to Storybook Gardens, a year-round family attraction, and of course the London Knights of the Ontario Hockey League. The team plays out of Budweiser Gardens, which is currently considering a renovation – possibly with help from the City.

And for festival lovers, there’s the London Fringe Theatre Festival, the Forest City Film Festival, the London Ontario Live Arts Festival, Pride London – and London Rib Fest is the second largest barbecue rib festival in North America.

LOCATION, LOCATION, LOCATION

Located in southwestern Ontario, along the Thames River; population 530,000; approximately 200 kms from Toronto

Key landmarks
• Budweiser Gardens
• Springbank Park
• Storybook Gardens
• Thames River
• University of Western Ontario

Select neighbourhoods
• Old East London
• Old North London

Select housing developments
Avenue Collection
By Doug Tarry Homes
dougtarryhomes.com

Harvest Run
By Doug Tarry Homes
dougtarryhomes.com

Middleton
By Sifton Properties
sifton.com

Miller’s Pond
By Doug Tarry Homes
dougtarryhomes.com

Riverbend Golf Community
By Sifton Properties
sifton.com

Riverstone Villas
By Sifton Properties
liveatriverstone.ca

Victoria on the River
By Sifton Properties
sifton.com

Warbler Woods
By Sifton Properties
sifton.com

Willow
By Wastell Homes
wastell.ca