Eco Home News: Real Estate and Rising Gas Prices

Originally Published in Tonic Magazine 2007.

The suburban lifestyle is built on the baseline principal of cheap gasoline. Since 2003 we have seen gas prices more than double. Today we are seeing the impacts to quality of life for residents of Toronto’s suburban communities. This expensive transportation inflation is influencing behaviour and is fuelling a revaluation of where people choose to live and work, and how they choose to get around. As the cost of car commuting increases, suburban lifestyles will continue to evolve, and urban lifestyles will become the preferred alternative.

Suburbs blessed with wise Municipal governments that are planning for the immanent changes will have a fighting chance to keep their communities thriving. The reinvention of suburbia will take the form of the integration of public transit, rapid rail, and local economy development. Fuelling the transition will be the rapid inflation of gasoline. For those interested in seeing Ontario’s plan to deal with this transition visit www.placestogrow.ca

Gas prices are tied to oil production and availability. I don’t think there is need to have a deep understanding of the petrochemical industry in order to reconcile this unique time in human history. The gasoline powered automobile was invented just on hundred and twenty-one  (121) years ago. Since 1979 humanity has consuming more than 60% of the oil ever consumed. With 6.5 billion people competing for the remaining global geologic supplies of petrochemicals for industry, transportation and food production I think it is obvious that the underpinning of the suburban dream is loosing stability, availability and affordability.

In the near term I expect there to be an increase in relative demand for urban Toronto properties. This may not influence prices; however, demand relative to suburban marketplaces will likely and logically remain steady. Markets outside Toronto are likely to be valued in the future based on their local economic opportunities, local food production and proximity and affordable access to other marketplaces. This transformation of priorities is not going to happen overnight, but I strongly believe that it is happening now and will become obvious in the relatively near future.

According to CEOs for Cities (www.ceosforcities.org), Statistics from Chicago IL support the assertion that demand for Urban living is rising and driving the value of urban properties. In a deflated market, inner city housing is experiencing a demand surge. The cited reason for the evolution is the cost of car-commuting.  Growing interest in the 1980s land use standard called “New Urbanism”, a term used to describe human scale (not ‘car scale’), mixed use, mixed density, and walkable communities is allowing progressive suburban development areas to meet the emerging realities.

Cities, Towns, Hamlets and Villages are places where people have lived together for a long time. They are the places where work people settled to provide labour for industry, markets, and services. Today these are places where people continue to share access to conveniences, convivialities and basic needs; places where communities culminate, and people collaborate. “New Urbanism” can also be described in terms of “old urbanism”. Borrowing from the realities of our pre-automotive past, New Urbanism is a movement that aims to influence land use planning where “neighborhoods are designed to contain a diverse range of housing and jobs, and to be walkable” (Wikipedia).

The City of Toronto, like many North American cities has a great advantage in meeting the coming challenges. To start with the neighbourhoods of our city have been built upon an “Old Urbanist” foundation, with thriving local businesses providing valuable services to local residents. The streetscape in our neighbourhoods is typically low rise, mixed use, offering options for people to keep their cars parked while they meet their lifestyle needs with a myriad of options for groceries and services Our Governments over time have had the foresight of investing in infrastructure and transit that allow residents to get around without cars. The fabric of community in Toronto is strong and constantly fortified by community action and revelry.  



Ecohome News: A fresh perspective on roofing

I often hear the objection, “I am going to sell the house before I see the benefit of that investment.” While this has been true of the last 12 years of real estate, I am confident it will not be true of our foreseeable future market. In a market like the one we are dealing with now, imperfections in properties are negotiating tools for buyers. In the resale housing market, roof defects are a common negotiating opportunity. If I am selling a home with a steel roof, you can rest assured the buyer is doing to receive a positive report from the home inspector, and that has an implication to value. 

Read more at REMONLINE

Ecohome News: Why Ontario needs the Green Energy Act

There is no doubt that the Green Energy Act will have a compelling and lasting impact on Ontario’s real estate market and energy-scape in the coming years. I am convinced that this emerging market will have a strong and very positive influence on the future of real estate valuation. Our industry is a hub of economic activity and this legislation will ensure the buoyancy of Ontario’s housing stock in a predictable future market where energy inflation has a much more significant implication to value. 

Michelle Kaufman Prefab Design - Evolving Green

An exciting new development in the world of prefab designs happened today, when Blu Homes, an East coast prefab home designer, announced that they had acquired the assets of mkDesigns, Michelle Kaufman’s prefab home design company. Back in May we were so saddened to hear that Michelle was closing the doors of her firm due to the crash in the housing market. This new development is huge and combines the manufacturing capabilities of Blu Homes with Michelle’s amazing talent, letting her continue doing what she does best – design fabulous green homes.