Hamilton’s housing market, already a star performer in Ontario especially when compared to high-priced Toronto, will experience steady demand in 2015. Homebuyers moving to the city and increasing job creation support strong existing homes sales, says Abdul Kargbo, senior market analyst for Hamilton and Brantford at Canada Mortgage and Housing Corp. (CMHC).At CMHC’s annual Hamilton Housing Outlook Seminar on Nov. 5, Kargbo said demographic trends will impact the housing industry in Hamilton in 2015.“The housing market will benefit next year from more people moving into than out of Hamilton. These out-of-town buyers and a tight resale market will continue to support house prices,” says Kargbo. “Growing housing demand is leading to residential intensification through infill and redevelopment, with multi-unit housing rising to 56 per cent of starts in 2015 and 2016, up from 44 per cent in 2011.”
- Existing home sales will remain strong on wider price gap with Toronto.
- More affordable areas will see higher existing home sales in 2015 and 2016.
- More jobs will be created in 2015 and 2016, which will support housing demand.
- The rental market will tighten as immigrants and echo boomers support rental demand.
As for specific areas in Hamilton that represent the greatest opportunities for new home purchases, Kargbo says buyers might want to look at Stoney Creek, Glanbrook, Flamborough and Grimsby.“Given the current land availability and positive net in-migration, (those) areas will see higher level of new residential construction for single-detached and townhouses,” he told New Home & Condo Guide.The City of Hamilton core and Burlington will see higher proportion of apartment construction (which includes condo ownership and rental) in the short and medium term, he added.Land supply issues – including availability and rapidly rising acquisition costs – are having a notable impact in Toronto. This is even occurring in multi-family housing such as townhomes, previously a popular choice for buyers not able to afford detached homes. Over time, this concern could spread to Hamilton.“Land issues will become more prevalent in the next five years as more people move into Hamilton,” he says. “This helps explain why intensification could be a solution to growing housing demand and housing affordability.”For Ontario overall, growing economic momentum will support stronger activity in the housing market in 2015.“However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016,” says Ted Tsiakopoulos, CMHC’s Ontario regional economist. “Resale markets surrounding the Greater Toronto Area, higher density dwellings and rental over ownership tenure will benefit most from the continued shift in buying patterns.”