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rt_0891
May 2nd, 2005, 11:39 PM
Building trades returning to B.C.
Employers in Alberta aim job website at out-migration

Jenny Lee
Vancouver Sun

May 2, 2005

The Alberta Home Builders Association has posted a job website in a bid to keep that province's construction workers from moving to B.C.'s booming construction market, a B.C. industry leader reports.

"They [the Alberta builders] are getting to the point now where they are starting to feel the pinch," Peter Simpson of the Greater Vancouver Home Builders' Association said in an interview.

A news release from the Alberta Home Builders' Association calls the Alberta Builder Connect website a response to a shortage of workers in all areas of the new home sector.

"With housing starts in Alberta showing no sign of letting up, the province's home builders are finding it increasingly difficult to connect with industry-related workers," the release states.

"It's not just tradespeople that are in demand: Builders are also dealing with a short supply of new- home salespeople, architectural technologists, designers, marketers and administrative personnel."

Simpson believes the numbers of construction workers heading west will continue to grow. Nor is he worried that the site will lure workers away from B.C., which is facing its own shortage of skilled workers.

"If you had a choice where you would rather live?" he said, adding: "For some of the trades, our rates are $5 to $10 higher than Alberta's," Simpson said.

On one Lower Mainland job site at least, he's been told that experienced carpenters can earn up to $35 a hour where two years ago the wage was $25 an hour.

Dale Barron, president of Morningstar Homes in Coquitlam, said that B.C. workers have been returning to the province from Alberta after five to seven years away. Now Albertans are coming too, lured by the promise of work and lifestyle benefits.

"I have a salesman joining me in a month from Alberta," Barron said. "He senses the economy in B.C. will give him long-term employment.

"Many of these people are workers who left B.C. when there was no work here," Simpson said. "We really couldn't get these people back until recently because they were in good-paying secure jobs in other jurisdictions and there was no incentive for them to come home."

"Now the weather's getting nicer and they are finding out the opportunities are immense here, not only with home-building activity right across the Lower Mainland, but work ramping up to the 2010 Olympics. They are starting to find it an attractive place to come back to. Many of them are simply coming home."

B.C. needs more construction workers, but "there's no panic mode just yet," Simpson said.

"Right across the board, there's some pressure. I don't get anybody phoning me up in a mad panic because they can't get workers in any capacity. As far as the website builders have in Alberta, we applaud them for doing that, but we don't have plans to follow suit."

Instead, B.C. stakeholders are working to develop trades training for youth, and the Vancouver builders' association is considering participating in an established careers website with a broader scope.

Construction workers started to leave B.C. in the late 1990s.

"It hit absolute bottom in 2000 with only 8,203 [Lower Mainland] housing starts," Simpson said. "It's been climbing steadily since 2000. Last year, we ended with 19,435. The forecast for this year is just a tad over 20,000, so it's a robust market for homebuilding and it will continue to be for commercial/industrial as well.

"Of course we need the workers. They left in droves and now they are starting to come back very quietly."

Housing starts grew 18.9 per cent across urban B.C. in March, and while total starts decreased strongly in some areas, they grew 51.2 per cent in the Lower Mainland and 53.3 per cent in Victoria, according to the Canada Mortgage and Housing Corp.

According to Statistics Canada, there were 168,200 jobs in the B.C. construction industry in March, 37,000 more than in March the previous year.

British Columbia has about $62 billion in major projects lined up over the next decade. Genstar Development Co. and the Madison Group plan to create a city-scale development that could double the size of Mission. Westbank Projects Corp. has begun construction on B.C.'s tallest high-rise, the 60-storey Living Shangri-La tower downtown.

B.C.'S BUILDING BOOM:

Alberta's construction workers are being tempted to head west by numbers such as these:

19,435: B.C. housing starts in 2004

20,000: B.C. housing starts forecast for 2005

168,200: Jobs in the B.C. construction industry in March

37,000: Increase in B.C. building jobs from March 2004

$62 billion: Value of major B.C. projects lined up over the next decade.

Source: GVHBA

Ran with fact box "B.C.'s Building Boom", which has beenappended to the end of the story.
© The Vancouver Sun 2005

rt_0891
May 10th, 2005, 10:50 PM
A year later, April housing starts shrink by nearly 50%

Brian Morton
Vancouver Sun

May 10, 2005

Housing starts in the Greater Vancouver area were down by nearly half in April over the same period last year, according to statistics released by Canada's national housing agency Monday.

However, the chief economist of Credit Union Central of B.C. said the drop in starts isn't surprising because a large number of multiple-unit projects all started in the same month last year, boosting starts in April 2004 to a record level.

"[The April 2005 number] is down, but it's off a very big April 2004," said Helmut Pastrick in an interview. "There was a huge surge in multi-unit apartments and townhouses [in April 2004]. The trend is still heading upwards."

According to the Canada Housing and Mortgage Corp. survey, all housing starts in the Vancouver metropolitan area fell 46 per cent to 1,348 units in April over the same month last year.

Multiple housing starts declined 49 per cent to 974 units, according to a news release issued by the CMHC, while single-detached starts dipped 36 per cent to 374 units compared to the same month last year. From January to April 2005, housing starts dropped 12 per cent compared to the same period in 2004 -- to 5,460 from 6,177 starts.

The CMHC survey said it's no surprise that housing starts in Greater Vancouver in April were below April 2004 levels, because "numerous large multiple projects were coincidentally started in the same month last year, boosting multiple starts to a record level."

The survey also said that multiple starts in Greater Vancouver last month were the second highest for the month of April in 10 years.

"April 2004 had the strongest numbers ever for multiple units," said Cameron Muir, senior market analyst for CMHC, in an interview. "We expected the numbers would be down. In April 2004, there were 1,898 multiple units in Greater Vancouver. Last month there were 974. That was a large decline, but it's not bad historically."

He said the large drop in starts from March to April is not very significant, because multiple units "swing wildly month to month. It's hard to gauge one month as a trend."

While multiple starts continue to be strong, the survey noted the number of new single-detached units under construction has been trending down for several months.

Muir said the main reason behind the decline is rising land and building costs.

He said that in the Fraser Valley, new single-detached home prices now exceed $500,000 in some areas, making it unaffordable for many. "The market at that level of pricing is smaller. As a result, there's a shift towards multiple units."

CMHC also noted that 20 years ago, just 44 per cent of housing starts in Greater Vancouver were multiple units, such as apartments and townhouses. Today, three-quarters of all housing starts are multiples.

According to the CMHC news release, B.C. saw urban housing starts, multiple starts and single detached starts all decline 23 per cent over the same month last year.

Year-to-date housing starts across urban B.C. fell seven per cent to 8,947 units over the same period last year, with most of the decline attributed to a drop in single-detached starts.

Peter Simpson, CEO of the Greater Vancouver Home Builders' Association, said in an interview that the April numbers may be "the calm before the storm."

He said there are a lot of projects in the Lower Mainland coming on stream and the numbers should shoot up when they do.

"We still believe we'll be slightly better than last year," he said. "We're not seeing a trend [down]. If it continues, then I'd say that something is happening."

Simpson agreed that expensive single-family homes are having an impact on the market. "We have the highest prices in Canada and that's nothing to be jubilant about."

Another reason for the falling numbers, he said, is that many smaller builders with multiple sites on the go are slowing down because of a shortage of skilled trades.

Pastrick said one reason the building boom likely won't abate is that B.C. now has a net inflow of people from other provinces.

Citing Statistics Canada, Pastrick said 54,730 people from other provinces moved to B.C. in 2004, compared to 47,650 from B.C. who moved out of the province. "That's a net inflow of 7,080."

Meanwhile, George Pahud, president of the Real Estate Board of Greater Vancouver, said in an interview that the Greater Vancouver market is still very strong and he sees nothing to worry about with the drop in housing starts.

"We're about 1.5-per-cent below what we were in 2004 with regards to sales [for the first four months of 2005]," he said. "As far as we're concerned, the market is as strong as it was in 2004."

According to the board's statistics, sales of properties reached 4,043 units in April 2005, compared to 4,103 in April 2004.

Pahud said demand is being driven by low interest rates, a positive job market and confidence in the economy.

VANCOUVER BRINGS DOWN THE HOUSING STARTS:

As housing starts declined sharply in the Vancouver census metropolitan area last month compared to April 2004, they rose even more sharply in Kelowna and Prince George census areas. While Prince George saw a 164.3-per-cent increase April 2004-April 2005, this was driven by just 23 housing starts. Kelowna, however, recorded a 146.2-per-cent April-to-April increase driven by 326 more starts.

Housing starts, April 2004-April 2005, percentage change:

Vancouver -45.6

Victoria -14.2

Abbotsford -2.1

Kelowna +146.2

Prince George +164.3

Other centres +2.0

Urban B.C. average -22.7

Ran with fact box "Vancouver Brings Down the Housing