Over the past two years, the real estate market in Western Canada has boomed as oil revenue and demand blows out the housing inventory in Calgary and Edmonton. Now the high prices in these large cities have started to drive up housing costs in second-tier cities. In part one of ‘Boom towns’, Wayne Karl examines the trends, infrastructure and economic climate of the west as it relates to the property market. In parts two and three in upcoming issues, he’ll look at the central and eastern Canadian markets
Western Canada’s flourishing infrastructure projects could mean flowing riches for real estate investors – if you time it right. Tens of billions of dollars are currently being spent on everything from highways and bridges to mass transit to resource facilities.
Never before, in fact, have our governments been so committed to improving the systems and facilities that keep the country rolling along. “Since 2000, governments have increased their infrastructure capital more than at any other time since the 1960s and 1970s,” says Mira Shenker, editor of ReNew Canada, a Toronto-based trade publication that covers the infrastructure industry.
Last year, Building Canada, part of the federal government department Infrastructure Canada, launched a $33-billion, seven-year plan to “deliver results that matter to Canadians – cleaner air and water, safer roads, shorter commutes, and prosperous, livable communities”.
Combined with spending by provincial governments and increasing involvement by the private sector, total infrastructure spending underway in Canada is estimated to be well beyond $50 billion.
That’s a lot of improvement for planes, trains and automobiles, but what does this mean for Canadian real estate investors? The answer is: plenty – if you do your homework...
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