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Home My WebLink AboutPD-246-90 Y TOWN OF NEWCASTLE USING.GPA REPORT File # {° , Res. # By-Law # hEUING: General Purpose and Administration Committee IATE: - July 23, 1990 REPORT #: pn-246-g0 FILE #: SUR,ECT: HOUSING TRENDS WITHIN THE TOWN OF NEWCASTLE FILE: PLN 11.1 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report PD-246-90 be received for information; 2 . THAT a copy of this report be forwarded to the Region of Durham Planning Department and the Ministry of Housing. 1. PURPOSE OF THE REPORT 1. 1 The purpose of the report is to provide Council with an overview of residential growth in the Town and a summary of major trends in the housing sector. This report will address housing supply, housing demand, the cost of housing, and assisted housing. 2. HOUSING SUPPLY 2 . 1 Chart 1 shows the number of housing units approved or under construction in the Town of Newcastle. The total number of housing units, has been calculated taking into account the total number of units applied for through both subdivision and 599 � r REPORT NO. : PD-246-90 PAGE 2 site plan approval applications. The calculations do not, however, include those urban and rural lots created through severance applications . 2 .2 The potential housing supply for the Town of Newcastle is 15,344 units . This includes 1,250 units, which represent vacant lots within presently registered plans of subdivision. The remaining 14,094 units (reflecting units in active applications) are broken down into the following types of housing units: Unit Type # of Units % of Total Single Family 6,233 44 .2 Semi-Detached 1,984 14 . 1 Townhouse 2,922 20.7 Apartment 2 ,955 21. 0 Total 14 ,094 100 . 0 2 . 3 In terms of a regional perspective, Newcastle's potential housing units (created through plans of subdivision only) , represents a 28 .5 percent share of those units within the Region. Although this excludes new units created through the site plan and rezoning process, this housing share is indicative of Newcastle's desireablity as a residential community and its future growth potential within the Region of Durham. 3. HOUSING ABSORPTION 3. 1 Chart 2 illustrates the number and location of building permits issued since January of 1986 . The issuance of building permits may be seen as approximating the absorption of housing units . 599 .5 ,5 REPORT NO. : PD-246-90 PAGE 3 3 .2 The total number of permits which have been issued during the construction boom period within the Town ( 1986 - to May 1990) , is 5698 . Over this period, Bowmanville has experienced an average of 241 new housing units per year, Courtice 611 units, and Newcastle Village 162 units . The absorption rate for the entire Town has averaged 1290 housing units per year since 1986 . 4. HOUSING COST 4 . 1 Chart 3 illustrates housing costs within the Region of Durham. Unfortunately, the figures compiled by the Royal Lepage "Survey of Canadian House Prices" do not include figures for the Town of Newcastle. For the purposes of this report it is assumed that the figures listed for the City of Oshawa approximate housing costs within the Town. 4.2 As one would expect, the cost of housing generally decreases as communities move further away from Metropolitan Toronto. The cheaper cost of housing in the Town of Newcastle, has subsequently increased the attractiveness of Newcastle to first time home buyers and families with fixed incomes. 4 . 3 Chart 4 shows the average cost of housing in the Oshawa Area over the past 10 years . Statistics are available for detached bungalows and executive detached two-storey homes only. House prices have generally increased by 200 percent over this period. After a period of rapid inflation, housing costs have decreased slightly due to the downturn in the housing market. It is anticipated that housing prices will stabilize for the year. A similar stabilization of housing prices was experienced during the 1981-1982 recession. 599 ) 4 REPORT NO. : PD-246-90 PAGE 4 5. ASSISTED HOUSING Various Federal and Provincial government programs are in place to assist the creation of rental housing. These are: Municipal Non-Profit Private Non-Profit Co-operative Housing Each of these programs have market rent units and rent-gear- to-income units to create housing for a mix of income levels . In addition, housing for the physically handicapped is incorporated into most developments . All three types of assisted housing are currently being pursued by various development interests . 5 . 1 The following are a list of assisted housing proposals submitted to the Town: Proposal Units Status Th Apt Durham Region Site Plan near Non-Profit 60 completion Bowmanville Co-op 42 26 in circulation Participation House 40 in circulation These proposals include a total of 11 barrier-free units for the physically handicapped. In addition to these proposals, assisted housing/non-profit housing blocks have been specified in the following subdivision applications: Subdivision Units Status Eiram 111 Site Plan has not been submitted 599 _5 } REPORT NO. : PD-246-90 PAGE 5 Fram 43 Site Plan has not been submitted All of the proposed assisted housing/non-profit units applied for, are located in Bowmanville. 6. SUMMARY 6 . 1 The following trends have been identified within the context of this report: if all the subdivision and site plan applications submitted to the Town are approved, 14,094 new housing units would come on stream. Newcastle's potential housing supply (created through plans of subdivision) represents a 28 .5 percent share of those units to be created within the Region. the Town has experienced an absorption rate of 1,290 units per year since 1986 . although market prices have risen dramatically in the Greater Toronto Area over the past ten years, the Town of Newcastle remains an attractive market for housing for GTA residents looking for affordable housing. Many of the Townhouses and smaller link dwellings for sale within the Town would meet the Ministry of Housing's affordable housing objective of $157 ,500. all of the assisted housing/non-profit proposals are located in Bowmanville. These proposals, however, represent a very small proportion of the total number of potential housing supply. 59 > c� REPORT NO. : PD-246-90 PAGE 6 Respectfully submitted, Recommended for presentation to the Committee Franklin Wu, M.C. I .P. Lawrence E. Kotseff Director of Planning Chief A 'nistrative and Development Officer JB*DC*FW*df Attach 9 July 1990 Interested parties to be notified of Council and Committee's decision: Darlene Mahyr-Richardson Ministry of Housing, Central Region Housing, Programs Office, Madison Centre, Willowdale, Ontario. M2N 6K1 599 V CHART 1 HOUSING SUPPLY YEAR END 1989 Newcastle Bowmanville Courtice Village Rural Areas Total Vacant Lots in Registered Plans 378 563 172 137 1250 Regional. Draft Approved Units SF 457 240 46 39 782 SD 192 0 0 0 192 TH 182 60 0 0 242 APT 48 0 0 0 48 Town Draft Approved Units SF 1467 0 0 0 1467 SD 666 202 0 0 868 TH 608 0 0 0 608 APT 171 0 0 0 171 Subdivision Units in the Process SF 945 1194 1132 713 3984 SD 258 644 22 0 924 TH 626 518 482 0 1622 APT 454 180 179 0 813 Site Plan Approved Units TH 60 0 41 0 101 APT 184 333 0 0 517 Site Plan Units in the Process TH 193 152 4 0 349 APT 1181 225 0 0 1406 TOTAL 8070 4307 2078 889 15344 Source: Durham Region Planning Department, Town of Newcastle Planning Department - 99 -18 CHART 2 HOUSING ABSORPTION 1986 1987 1988 1989 1990 TO MAY/90 TOTAL URBAN AREAS Bowmanville 125 365 347 181 47 1065 Courtice 579 670 633 697 121 2700 Newcastle Village 105 26 317 262 5 715 Sub-Total 809 1061 1297 1140 173 4480 RURAL AREAS C� Ridge Pine Park 173 137 64 42 4 420 Hamlets 52 48 54 51 7 212 Other 115 156 167 126 22 586 Sub-Total 340 341 285 219 33 1218 TOTAL 1151 1402 1582 1359 203 5698 CHART 3 HOUSING COSTS (in dollars) Executive Standard Standard Luxury Detached Detached Two Standard Senior Condominium Cond�m�n�wn Bungalow Two Storey Storey Townhouse Executive Apartment Apartment Pickering 200,000 290,000 200,000 160,000 430,000 150,000 -- Ajax 200,000 245,000 205,000 150,000 330,000 135,000 -- Whitby 200,000 245,000 205,000 175,000 -- -- -- Oshawa 178,000 230,000 170,000 136,000 330,000 127,000 300,000 0 Source: Royal LePage Housing Survey (April, 1990) Ln CHART 4 Executive Detached Detached Bungalow Two-Storey 1979 58,000 80,500 1980 59,000 81,000 1981 70,000 97,500 1982 70,000 95,000 1983 71,500 97,500 1984 75,000 105,000 1985 85,000 125,000 1986 109,000 145,000 1987 118,000 180,000 1988 148,000 212,000 - 1989 180,000 235,000 `-+- April, 1990 178,000 230,000 Source: Royal LePage Housing Survey (April, 1990)