Builders face unprecedented demand

Tired of being out-bid on houses so you’ve decided to build? Whoa! Not so fast! Creemore builder, Gord Zeggil says the construction industry is seeing the same high demand as the resale housing market, so building your dream home may take a bit longer than anticipated.
Zeggil has been a fixture on the local construction scene for 20-plus years. Last May he launched a new company, Mountain Ridge Homes. He has enough jobs booked to keep his crew busy into 2023, and says that is typical of most local builders. Prior to the start of the pandemic, Zeggil says he was booked about a year ahead, but between city dwellers looking to make the move to a small town and current residents renovating existing properties, he was forced to hire more workers to keep up with the demand.
As well as increasing the amount of lead time required for major projects, the pandemic has had a significant impact on cost and availability of materials. Everything from wood and steel to plumbing and electrical supplies has risen in price between 30 and 50 per cent. Windows and doors which used to be delivered in four to six weeks now take three months or more. Sometimes materials are simply not available, as was the case last spring and summer with pressure treated lumber. Builders have resorted to pre-buying home packages to secure prices and guarantee availability. Zeggil predicts that some developers who pre-sold multiple units and didn’t have long term supplier contracts in place to protect against price increases will be in financial trouble.
Recent news about a moratorium on new building permits in Collingwood and limits on water and waste treatment capacity in Creemore and Stayner will put further pressure on existing home inventory. When asked whether rural land with private wells and septic systems is becoming a more attractive alternative Zeggil pointed out that vacant land is getting hard to find. Land outside the settlement areas in the township’s Official Plan is often subject to restrictions imposed by the Niagara Escarpment Commission (NEC) and or the Nottawasaga Valley Conservation Authority (NVCA). Satisfying those requirements can be a long and expensive process, and the township cannot issue building permits until the NEC and NVCA have signed off.
Clearview Township chief building official Scott McLeod says the number and value of permits being issued is way up. The township issued 80 building permits in the first quarter of 2021, up from 64 in the same period last year. The value of permits issued increased from approximately $10 million in the first quarter of 2020 to $18.9 million this year. The vast majority of permits, totalling roughly $18.4 million in value are for residential construction. Typical turnaround time for a straightforward building permit application was around two weeks, prior to the pandemic. With most staff working remotely now, that has stretched to about three weeks. McLeod is proud of the efforts of township staff in the face of Covid-19 restrictions, and says they appreciate the patience and understanding of permit applicants. For anyone needing NVCA or NEC approvals, McLeod encourages them to submit applications simultaneously with the application for a township building permit to speed up the process.