Housing Prices Represent Growing Challenge For Young Families

Housing Prices Represent Growing Challenge For Young Families

L’Association provinciale des constructeurs d’habitations du Québec (APCHQ) is concerned about the deterioration and the affordability of properties for Quebecers, especially for young families who wish to acquire their first home.

A study published Thursday by the Organization, indicates that the selling price of residential properties saw increases of 19% to 24% between 2006 and 2012. This means that the selling price of a 1200 square foot home jumped nearly $ 49,000 during the period to more than $253,000.

As a result. First time buyers must pay a higher down payment that takes ten years to accumulate rather than five in the early 2000s.

“It is possible that our children and our grandchildren will have difficulty accessing property someday,” said Jean-Paul Filion, Senior Director of Development Affairs and government relations at the APCHQ.

Traditionally, first time buyers acquire 50-52% of homes a year. The proportion decreased to 41% in 2012, according to a survey done by the APCHQ that will be made public next week at its annual Congress.

Governments Blamed

Almost 60% of the increase in value of the properties comes from the increase in the cost of the land and development costs, says the study. The Organization, representing the builders, regretted that the Governments have strongly contributed to the rise in prices.

According to the APCHQ, the federal and provincial governments and the municipalities have affected buyers by adopting policies that have a direct impact on the costs of construction.

‘Last year, the energy efficiency policy drove up the price of new homes by about $7000, illustrated Mr. Filion, adding that a reform currently underway should be double the cost of the premium warranty.

The Economist said that Crown corporations can also have an influence on the price of the homes. Canada Post charges $200 per door to home builders for the establishment of a post office box. Hydro-Québec requires an overload so that the power lines are installed behind the houses, a norm in recent decades, rather than frontal installation.

To remedy the situation, the APCHQ seek the establishment of a Quebec housing policy that would ensure that the departments and Crown corporations coordinate before acting. A television advertising campaign, entitled Mission génération, will be launched in a few days to raise awareness and put pressure on Quebec.

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LifeinQuebec.com Staff Writer

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