Is Regina Construction Industry Slowing Down?
Regina is seeing sales of new and old homes and the construction of new builds slowing down but does that mean the entire industry is slowing down compared to recent years? The Saskatchewan housing market has been slowly increasing but is still quite slow. According to the Regina Census Metropolitan Area (CMA) construction activity slowed down in single-detached home construction. During February of 2019 starts totalled 27 units, compared to 140 units in February 2018. So there is a downward trend currently, but economic conditions being weaker, higher borrowing interest rates and costs and the never-ending winter have significantly reduced homebuilding activity so far this year. Canadian new housing prices fell in January for the first time since February 2018 and mortgage rates have increased along with tighter mortgage regulations.
The housing market’s downward trends have created a buyer’s market, but with stricter lending policies many cannot afford to buy and this has really weakened demand to purchase. Many sellers are finding they are having to adjust their expectations and accept less than they’d anticipated if they are able to sell. It may be a buyer’s market now, but many of us have to sell our current home in order to buy a new home! Buying homes at a lower price also mean you may be selling at a lower price, this may be the reason fewer houses are being put up for sale, (specifically in the Moose Jaw housing market) and more people are opting to rent or renovate their home.
This market is perfect for those who are interested in purchasing income property or first time home buyers. What this means for the construction industry is that renovations can be an excellent avenue for sustaining your construction career. If you’re concerned about your job security during the low times, or even during the winter seasons working for landlords and working in property maintenance are great ways to keep the ship afloat. Renovations and maintenance are areas slow down a bit less than new builds because our homes are always requiring repairs and we often have to update things in order to sell them.
Another key thing to consider is that 19% of the construction workforce will leave the industry due to ageing out within the next 10 years. So we may be in a lull right now, but it is the perfect time to get your apprenticeship and trades certification because we soon will see shortages for skilled labour. What we call ‘The 2008 Boom’ created a huge demand for those seeking careers in the trades such as pipefitters, plumbers, and electricians. More individuals are retiring than are entering into these positions, and those interested in education are getting degrees and certifications for positions that our labour market doesn’t currently require.
Ultimately, the construction industry is slow now, but this too shall pass and when it does we will see there will be a rise in the demand for skilled labour. We are excited about where we are now and the growth that the future holds. Mostly because we are confident in the direction of the construction industry and North Canadian Construction as a business to keep up with the industry. We feel that by demonstrating our transparent business model we are demonstrating our confidence in the construction industry because it’s here to stay and so are we.
Building Communities Together. North Canadian Construction.