Wednesday 21 December 2011

Builders brace for higher prices - The Barrie Advance

 

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As of January, building code changes are going to make buying a home even more costly. Heljar Hansen, president of Pratt Homes, said things are at the point where value for money is becoming a concern for new homebuilders.

The building code changes will make energy efficiency mandatory in homes, and Hansen said that cost will be passed on to homebuyers. He said the terminology used is EnerGuide 80, and Hansen said it was offered as an option for homebuyers, although few paid the extra for it in the past.

"We welcome energy efficiency, we're all for it, but it's costly," said Hansen.

"People are struggling to be able to afford a new home. We've been hit with development charge increases for the last few years, increases in electrical work, the HST and land costs because there are few lots left in Barrie."

Hansen said mandating the high-efficiency regulation will add another $5,000 to a new home purchase.

"Some of the costs will be offset by the fact that these homes are less costly to operate," he said. Other new rules to the building code include occupancy requests like it has to be bricked before a family can move in.

Gord Allison, director of building services, said these new rules may mean more costs to developers for hiring extra workers or buying heaters to get the work done in the wintertime. "This means the builder can't wait until better weather to brick the home if the occupancy is scheduled for January, February or March," said Allison.

And it also means new homebuyers should "experience fewer incomplete construction issues when they move in."

For builders, like Pratt Homes, that regulation doesn't change much.

Hansen said "we've always had our homes bricked before we move in." He said the only change for occupancy now is "a blower door test to check air tightness. It's $400 for the test, and it's more red tape and paperwork," said Hansen.

Allison said to avoid extra costs, some builders may extend the closing date.

And some builders "are submitting their permit applications for empty lots in advance of the new changes" so they are exempt from the Building Code update, said Allison.

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Trade News selected by Local Linkup on 21/12/2011