By the 1950’s Canada was a largely urbanised society. The population increased rapidly after the war, due to waves of new immigrants, and baby boomers catching up after reuniting. Single family homes dominated, although there were often only three bedrooms as the custom was for kids to double up.
The Canada Mortgage and Housing Corporation’s mortgage loan insurance model arrived in 1954 with the promise of a home for every Canadian family. Meantime, prices crept up inevitably as supply responded to demand.
Apartment-Style Living Takes Over in the 1960’s
During the early 1960’s rising land prices cause a shift to denser, apartment style living. Some 60% of building approval was for multi-family buildings between 1962 and 1973, with each approval representing multiple homes. Many takers were baby boomer children. Many more were new wave immigrants taking advantage of the 1967 Economic Point System.
Single Family Homes Back in the 1970’s and 1980’s
However, the mid-1970’s recession slowed apartment construction down. From 1974 to 1982, single family homes were on par again even though mortgage rates were still at their peak. This may have been due to families doubling up, and grandparents moving in. Then the mortgage rate dropped again in 1982 according to Statistics Canada.
A more cautious Canada emerged from the recession. Population growth slowed owing to smaller families. Residential construction increased, while multi-family unit construction continued to decline. This was probably in response to lower mortgage rates, although a yearning to own a bit of garden may have played a role.
1990’s Recession Set Construction Back 15 Years
Stats Canada reports it took 15 years for multifamily and single family construction to recover. It sees condominium living continue to dominate in future, because this suits both first time buyers, and baby boomers preferring it when downsizing.
In Calgary, we note greater interest in second entrances and more space to accommodate multi-generational families in newly constructed homes. We believe this is partly due to wanting to generate an income from part of the house, and partly due to a return to multi-generational homes.
Time will tell whether this trend will continue in older Calgary suburbs, as Canadians come to grips with the lingering effects of the 2008 financial crisis following reckless lending in the U.S. Please speak to us soon about an affordable rate to add a second entrance to your home. You may be pleasantly surprised with what you hear!
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