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Winnipeg Free Press
5 days ago
- Business
- Winnipeg Free Press
Manitoba ‘particularly vulnerable' to tariff-fuelled core building materials price hikes: CMHC
Due to a reliance on imports, tariffs on core building materials could hit Manitoba harder than other provinces. A Canada Mortgage and Housing Corp. report in February flagged Manitoba and Saskatchewan as facing the highest potential cost increases because of a 'heavy' reliance on imported U.S. steel, aluminum and concrete. The market insights report was assembled as Canadians braced for sweeping 25 per cent tariffs. It was shared with the Free Press recently via a freedom of information request. MIKE DEAL / FREE PRESS FILES A Winnipeg Construction Association memo notes a 10.7 per cent drop in permit numbers during the first three months of 2025. At the time, the CMHC projected Manitoba could see a 3.7 per cent price increase on core building materials: steel, aluminum, concrete and softwood. 'Regions like Manitoba and Saskatchewan are particularly vulnerable due to limited local production capacity,' the report reads. Four months later, blanket 25 per cent tariffs haven't appeared. However, a levy applies to all steel and aluminum imports to the U.S.; Canada reciprocated with a swath of 25 per cent tariffs on inbound steel and aluminum. U.S. President Donald Trump doubled his tariff on the two core building materials Wednesday. 'This report certainly shows that the construction industry in Manitoba has exposure to the evolving tariff situation,' said Darryl Harrison, Winnipeg Construction Association director of stakeholder engagement. Industry members have been altering their supply chains to minimize costs. It includes sourcing more Canadian steel and ensuring contracts don't specify American products, Harrison said. Manitoba imported $32.9 million worth of U.S. iron and steel more than it exported in 2023, per Statistics Canada data. It saw a similar deficit — but $51.9 million — for aluminum. Despite the economic uncertainty, Manitoba contractors have more bidding opportunities now than a year ago, Harrison said. The Winnipeg Construction Association has an online tender platform. The projects awarded during the first three months of 2025, however, was a noticeable drop from the same period in 2024. 'The tariffs certainly would have an impact,' Harrison said. U.S. levies — and Canada's reciprocal fees — came online in March, after months of threats and uncertainty. A Winnipeg Construction Association memo notes a 10.7 per cent drop in permit numbers during the first three months of 2025. Then, $988 million worth of permits were awarded; the number was $1.1 billion a year earlier. Institutional permit numbers plunged 53 per cent; industrial followed with a 36 per cent decline. Commercial and residential permits bucked the trend with year-over-year increases. 'My feeling is that people are more comfortable (now) in trying to find ways to manage the uncertainty of tariffs,' Harrison said. But the recent doubling of American steel and aluminum import tariffs — and possible reactive tariffs from Canada — could have an impact, he added. Supply-Build Canada hasn't clocked big differentials in tariff exposure across the country, said president Liz Kovach. Some U.S. suppliers have eaten tariff costs. 'I don't know how long they're going to be able to do that,' Kovach said. '(And) now that the tariffs have doubled, it's going to take a little while to see what that impact will be on the industry.' Monday Mornings The latest local business news and a lookahead to the coming week. Canadian construction firms also face a headwind from an ongoing softwood lumber dispute with the U.S., Kovach added. She's bracing for a doubling of duties on such exports this year. Manitoba exported more softwood to the U.S. than it imported in 2023, at a net export of $244 million. Freight costs — and the distance required to get material — seems to be a large factor in price fluctuations, Kovach said. The CMHC hasn't analyzed whether core building material prices have increased since February, but stakeholders say rising prices are affecting construction, spokesman Leonard Catling wrote in a statement. 'We continue to closely monitor housing market activity.' Gabrielle PichéReporter Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle. Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Calgary Herald
21-05-2025
- Business
- Calgary Herald
How does Calgary keep market housing affordable and in supply?
Article content Calgary's market housing is at the tipping point of affordability. But does home ownership have to slip out of reach or can the situation be reversed? Article content Building Industry and Land Development Calgary Region brought together independent industry experts for a summit, Unlocking Doors: Housing Supply and Affordability Summit, earlier this month to discuss ways to prevent market housing from escaping the reach of would-be homebuyers. Article content Article content 'We're the second most affordable metropolitan area in Canada. That is great, but that will also draw people here, so we have to redouble our efforts,' says Brian Hahn, CEO of BILD Calgary Region. Article content Article content Canada Mortgage and Housing Corp. describes housing as affordable when a household spends less than 30 per cent of its pre-tax income to cover mortgage, property tax and utilities. That number has hovered above 40 per cent in the Calgary area for the past three years, show RBC's Thought Leadership Series on Canadian Housing quarterly reports. By comparison, the latest report shows the average across Canada was 58.4 per cent in the fourth quarter of 2024. Vancouver reflected the most unaffordable metropolis at 92.8 per cent, while Toronto was at 70.8 per cent. Edmonton came in as the most affordable of the group at 33.6 per cent. Article content Article content While the solution to tight demand and high prices might be simple in theory — build more homes — the reality of increasing market housing and affordability involves many moving parts. Article content 'The biggest challenges are the time from dirt to door, and cost. Every bit you can shorten up on time helps on the cost side, and everything you can do on the cost side helps,' Hahn said. Article content SHORT ON HOUSING Article content According to CMHC, Alberta needs 130,000 more housing units by 2030 to meet demand created by so much in-migration in the past few years. Article content There's an argument to be made that Alberta's builders and developers are up to the challenge. The province marked record building starts topping 46,000 in 2024. However, it's not quite that simple, points out Hahn. Top of mind is the aging skilled labour force. Article content 'We need to make sure that people are entering the fields that are the skill sets that support land development and housing,' Hahn said. 'Trades are one, and we're grateful for what the province and the federal government has done in terms of supporting that. But also we would like to see focused programs in terms of immigration and making sure that amongst those who come to Canada are those who have experience in construction, and home construction, in particular.'
Calgary Herald
29-04-2025
- Business
- Calgary Herald
Opinion: Calgary is Canada's housing engine, and we need to do more
You've likely heard that Calgary is growing at a record pace. As Calgarians, you likely feel it — when you take your kids to the leisure centre or when you're driving or training to work, our city feels 'busier.' Article content Article content That's because 91,000 net new people moved to Calgary in the past year, and 83,000 the year before that — that's like the population of Kelowna, B.C., moving here in just two years. Article content Article content While new housing to accommodate this growth has been a highly political topic in Calgary for some time. I get it; how our neighbourhoods change over time is something we all have an interest in. But the fact remains, people need places to live. Article content Article content In 2024, Calgary achieved a record 20,000-plus new housing starts — more per capita than any other Canadian city benchmarked by Canada Mortgage and Housing Corp. This trend continued through the first quarter of this year. Calgary is producing more than half of Alberta's housing starts — and it's still not enough. Article content Last year alone, about 36,000 new Calgarians struggled to find housing. This adds to the 220,000 Calgarians who are struggling to afford their housing expenses, and the thousands more who live in housing that doesn't suit their needs but don't have options to move to. Calgary needs to enable more housing supply and choice across our city to maintain livability for our 1.6 million residents, and future residents who want to call Calgary home. Article content Article content As chief housing officer, this is what I was hired to lead. As a born-and-raised Calgarian now choosing to raise my son in Calgary, and worrying not just about the state of housing affordability now but about what future we are building for his generation, I'm more than passionate about getting it right. Article content The City of Calgary has initiated more than 80 per cent of the nearly 100 actions in our Home is Here: Housing Strategy 2024-30. We are making good progress, such as year-over-year increases in secondary suites and 11 office-to-residential building conversions underway in downtown. The city is working together with our amazing industry partners on a foundation of systematic improvements over the past decade to achieve these successes.
