• About 3,024 direct and indirect jobs were generated by all housing activity taking place in the region. Total wages paid were $141 million.

• 1,221 jobs came from new housing construction, 540 units last year. These were tradespeople working directly on construction sites and also people supplying materials, design consulting services, etc. to housing developments. Costs of developing land, but not the cost of land itself, are also included.

• Some 1,803 direct and indirect jobs were created by home renovation and repair activity.

• The value of new home construction in Peterborough was $135 million.

• A total of $198 million was spent on home renovation and repair work.

• All housing investment in our region came to $333 million.

• Federal and provincial revenues from housing activity amounted to $73 million, not counting corporate tax revenues from builders and related industries.

In developing these estimates, Mr. Dunning has drawn to the attention of the Canadian Home Builders' Association a number of important factors to be considered. The estimates illustrate the importance of residential construction in generating jobs, wages, and investment in the construction industry, and other industries, and the significant government revenues generated by housing activity.

The Statistics Canada and CMHC data show that activity in the residential sector, and the resulting economic benefits, may vary significantly from year to year. These variations occur because of changes in local housing market conditions, but also because policies of federal, provincial and municipal governments have great potential to affect housing activity.

Various emerging economic factors are bound to affect the local housing market in 2008 and beyond, and may cause the economic impacts to be reduced compared to prior years. The factors include: changes in local economic conditions, especially overall job creation and unemployment; reductions in housing affordability, due to increases in interest rates combined with higher selling prices, which in part have resulted from higher government-imposed costs such as taxes, fees, levies and charges; shortages of serviced land and/or other restrictions in the supply of factors critical for housing production.

During 2006 and 2007, housing activity in Canada was temporarily bolstered by the availability of new mortgage options, including mortgages with extended amortization periods (up to 40 years) and no-down-payment mortgages. The market boost that resulted from these new options is unlikely to be repeated in 2008. All things considered, it appears that local housing market activity may have peaked in a number of areas across Canada. Looking forward, residential construction activity may well weaken during 2008 and subsequently. In this event, the local economic benefits of residential construction may be reduced.

This reinforces the need for governments at all levels to be aware of the possible negative economic, revenue, and affordability impacts of their housing-related policies.

For additional information, please contact Peterborough & Kawarthas Home Builders’ Association Executive Officer Lorraine Stratton at 705-876-7604 or info@pkhba.ca.

The Association can also be reached at:

494 The Parkway, Unit 2
Peterborough, Ontario K9J 7L9
Fax: 876-6630
Website: www.peterboroughhomebuilders.com