April 2012 Ontario Economic Fundamentals

[Ally]

Toronto's economy marches on its stomach




The food-processing sector is emerging as an unsung hero in Canada`s largest city.




As manufacturers across the country struggle to create jobs in the face of a strong loonie and a rocky economy, Toronto`s food-and-beverage industry is quietly employing tens of thousands of workers and providing the city and the province with a much-needed recession-proof base.





Read the full article here.

 

[Ally]

Hamilton condo-dwellers buck double tax hit




The city is investigating what it will cost to provide extra services at condominiums after Hamilton`s condo dwellers argued they`re paying taxes for amenities they aren`t receiving.




Representatives from the Canadian Condominium Institute told councillors Tuesday that they`re taxed the same as single-family homes, but don`t receive the same level of services from the city.




They argued they`re paying double for things such as garbage collection, storm sewer cleaning, fire hydrant inspections and West Nile controls ` once through their condo fees and once through property taxes. Condo residents also say compared to traditional housing, they provide greater tax revenue to the city with less cost.





Read the full article here.

 

[Ally]

Hamilton carpoolers are making new friends and saving big money




Hundreds of people are hitching a ride to work in Hamilton, and carpooling numbers are higher than ever.




More than 155 registered carpools are getting people to their jobs around this city each day, a 35 per cent increase since the city`s Smart Commute Hamiltonhttp://http://www.smartcommutehamilton.ca/en/home campaign started in 2009.





Read the full article here.

 

[Ally]

Toronto condo surge disguises looming slowdown




Despite a stunning surge in condo construction across the GTA in March, signs are pointing to a coming cool down in the highrise market, according to the Canadian Mortgage and Housing Corp.




On paper, at least, the GTA new housing market still looks hot: There was a 36.1 per cent jump in construction of new multiple-family homes ` mainly highrise condos ` in the first quarter of 2012 over the same period a year ago, the federal housing agency reported Wednesday.




Just since February, the construction of multiple-family homes ` the vast majority of them highrise condos ` was up almost 128 per cent, from 20,900 to 47,600 units under construction, it notes.





Read the full article here.

 

[Ally]

Toronto condo starts show no signs of cooling




The fevered pace of condominium construction in Toronto shows no signs of fizzling out.




Figures released Wednesday showed the number of condos starting construction in the city in March rose at almost twice the pace of the Canadian average for all homes as buyers ignored government warnings about the risks of excessive personal debt and high prices.





Read the full article here.

 

[Ally]

Toronto downtown relief line




How do you spell relief if you ride the south end of the Yonge subway?




D-R-L ` downtown relief line.




Since 1910, when the idea first emerged of a transit line connecting the east end of Toronto with the south end of Yonge St., the DRL has gained very little traction.





Read the full article here.

 

[Ally]

If RIM folds, what happens to Waterloo?




When BlackBerry maker Research In Motion (RIMM) released its quarterly earnings on March 29, few paid attention as closely as the residents of Waterloo, the small Southern Ontario city where RIM is based. Despite sales of $4.19 billion, RIM lost $125 million and nearly half of its market share compared with a year ago, now just 8.2 percent of the smartphone market that it all but created. Even after former co-Chief Executive Officer Jim Balsillie resigned from the board on March 29, a dark cloud hung over the company`s future; the stock is down roughly 80 percent since January 2011. `This is the talk of the town,` says Chris Zaptses, the longtime owner of a Mr. Sub sandwich franchise blocks from RIM`s Waterloo headquarters. `Friends ask each other, `What are we going to do if RIM goes down?```




Research In Motion is the largest employer in Waterloo (pop. 98,780) and its sister city, Kitchener (the area is commonly called Kitchener-Waterloo, or KW), providing some 8,000 jobs while occupying 20 percent of the city`s office space. Hundreds of millions in donations by RIM and co-founders Balsillie and Mike Lazaridis (both resigned as co-CEOs under shareholder pressure in January) have bankrolled everything from food banks and science fairs to shiny new facilities at the University of Waterloo and Wilfrid Laurier University.





Read the full article here.

 

[Ally]

Developers continue to question Windsor's decision



A developer in Grand Falls-Windsor says it`s having difficulty with the town in relation to rental properties, even though the rental vacancy rate is the lowest in the province at 0.9 per cent, according to the Canada Mortgage and Housing Corporation (CMHC).





Roadrunners Properties Inc. is a small-scale developer which had bought a large single-family dwelling on Grenfell Heights, and divided it into four apartments, two fronting the street and two below.





Read the full article here.

 

[Ally]

AIESEC attracting globally minded citizens




Hamilton is a city with many notable characteristics. It is uniquely situated at the centre of the Golden Horseshoe, a region with strong economic activity, and access to large and differentiated markets.




It has the busiest port on the Great Lakes, and Canada's busiest cargo airport by cargo plane volume.




Hamilton's beautiful escarpment and its title as the City of Waterfalls helps promote tourism, which has an economic impact to the city of over $130 million [PDF link] per year.





Read the full article here.

 

[Ally]

Toronto's housing spree might not end well





While Canada's high-flying housing market continues to stabilize, it's increasingly evident that one city, Toronto, is a glaring exception.




In sharp contrast to price moderation in most cities and a significant drop in Vancouver, where buyers are being priced out of the country's costliest market, Toronto buyers are on a spending spree - one that looks as if it won't end well.




New figures from the Canadian Real Estate Association show prices up by 10.5 per cent in Toronto over the past 12 months, the only major city with a double-digit gain. In contrast, Montreal gained a modest 3.7 per cent and Vancouver is down by 3.1 per cent.






Read the full article here.

 

[Ally]

Toronto condo boom is translating into more office jobs downtown




Toronto is seeing such a surge in demand for downtown office space within walking distance of all those bright young workers now living in highrise condo towers that office vacancy rates continue to decline and rents rise.




That`s a trend expected to continue through the rest of 2012, according to a report released Tuesday by commercial leasing brokerage Colliers International.




While previous periods of high demand for downtown office space have largely been driven by strong economic and business performance, a `demographic shift` is now also contributing to a tightening in the commercial sector, says John Arnoldi, managing director of the Toronto Region for Colliers.





Read the full article here.

 

[Ally]

Toronto tenants feel the squeeze of rising rent





It`s become difficult to be a renter in Toronto. Ward 22 has the highest percentage of tenants in the city at 63 percent and I consistently hear from many that their budget is being squeezed tighter every month.







This year`s high guideline rent increase, coupled with Above the Guideline Increases for basic upkeep and repairs have pushed rents up the roof. In addition, the low vacancy rate has made it near impossible to find lower-cost alternatives elsewhere.







I heard these concerns, and many others, at a tenants` town hall I hosted last month. Renters from across midtown had questions answered by experts I invited from the Ontario Landlord and Tenant Board, Federation of Metro Toronto Tenants` Associations, Greater Toronto Apartments` Association, Advocacy Centre for Tenants and city staff from Municipal Licensing and Standards.







Read the full article here.

 

[Ally]

Job gains, losses even in Windsor





Windsor area employers who responded to a monthly survey let go as many workers as they hired in March, a reflection of an employment rate that has been stuck around 10 per cent for a year.




The 40 companies that participated in Workforce WindsorEssex's monthly survey created a total of 32 jobs and eliminated 33 positions.




Windsor's unemployment rate remained stuck at 10.7 per cent in March, Statistics Canada reported.






Read the full article here.

 

[Ally]

Landlords attack Waterloo bylaw on rental housing




WATERLOO ` Waterloo council is expanding its rental housing bureaucracy even as upset landlords attack the city`s rental bylaw.




Politicians voted Monday to recruit a three-citizen tribunal to hear appeals from landlords who are denied a rental licence by city hall.




The tribunal is part of a new rental housing bylaw imposed this month despite concerns raised by the Ontario Human Rights Commission.





Read the full article here.

 

[Ally]

TREB's fear-mongering hurts its arguments against Competition Bureau



There are many good reasons to support the Toronto Real Estate Board in its battle with the federal Competition Bureau. After all, TREB created the Multiple Listing Service, investing millions of dollars in its operation, and now the competition folks want to force TREB to make it more open to uncontrolled public use.





As part of its battle with Ottawa, TREB last month launched a website (protectyourprivacy.ca) and a publicity campaign claiming that if the Competition Bureau wins its case, the `privacy safeguards` of the MLS system will be compromised and `personal information` will become freely available on the Internet.





Read the full article here.

 

[Ally]

To tame Toronto's 'housing bubble', ban foreign buying




Nearly three times` more condo high-rises are being built in Toronto than are being built in New York City and nearly seven times` more than in Chicago, according to Bloomberg News.




This development boom, and accompanying price increases, is not about housing to meet a sudden surge in population. It is not about an economic boom. If it was, Calgary and Edmonton would have 128 cranes, like Toronto does, building housing and pushing up all prices. Instead, this is taking place in Toronto and Vancouver where economies are moribund.





Read the full article here.

 

[Ally]

Transit plans help raise farmland prices in parts of Ontario




More than commuters are riding the expanded GO Transit service in southern Ontario.




Farmland prices are hitching a lift as well.




Farm Credit Canada reported Monday that Ontario farm prices are continuing to soar, up a whopping 7.2% in the second half of 2011. That follows a 6.6% hike the previous six months.




Though low interest rates and higher crop and livestock prices are given much of the credit for the jump in farm prices, Farm Credit Canada said the recent expansion of GO Transit north of Toronto is also a factor as people buy land for residential purposes.





Read the full article here.

 

[Ally]

Toronto casino: Referendum would likely wait until 2014



A referendum on a Toronto casino is not likely to be held before 2014.





Councillor Michael Thompson, chair of the city`s economic development committee and an ally of Mayor Rob Ford, had proposed a referendum for this October. But he said the provincial government should foot the $7 million bill, since it is the province, not the city, that proposed the casino.





A spokesperson for the provincial finance minister flatly said the city would be responsible for all referendum costs. On Tuesday, Thompson said he would prefer to simply add the casino question to the October 2014 election ballot instead of forcing city taxpayers to pay for a standalone vote.





Read the full article here.

 

[Ally]

Toronto condo price hits average of $360,892




Last year`s record pace of condo construction is starting to be felt across the GTA, with listings up 14 per cent in the first quarter of 2012.




Sales, on the other hand, were up by just 2 per cent over the same period as condo buyers appear to be taking more of a wait-and-see attitude, hopeful that an increase in supply could start pushing prices down, some realtors say.





Read the full article here.

 

[Ally]

Banks tighten condo lending among bubble fears




Canada`s biggest banks are tightening lending standards for condominium builders at the urging of regulators, requesting higher pre-sales and deposits as policy makers warn the Toronto and Vancouver markets are overheating.




Some banks have been asking construction firms to put more equity into new projects in recent weeks, according to developers. Lenders have also been raising the percentage of condo units that must be pre-sold and are demanding higher deposits as conditions for financing, they said.





Read the full artilce here.