GROWTH TRENDS 2019 REVIEW - Clarington
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Table of Contents 1.0 Introduction .....................................................................................................................................................................................1 Purpose of the Growth Trends Review ..........................................................................................................................................1 Information Sources .......................................................................................................................................................................1 Publishing of Growth Trends Review .............................................................................................................................................1 Contact Information........................................................................................................................................................................1 2.0 Overall Growth Trends ...................................................................................................................................................................2 Total Building Permit Value in Clarington.......................................................................................................................................2 Total Building Permit Value in Durham Region ..............................................................................................................................3 Share of Total Building Permit Value in Durham Region ...............................................................................................................4 Policy Updates ...............................................................................................................................................................................5 3.0 Residential Growth .........................................................................................................................................................................6 Total Residential Building Permit Value in Clarington ....................................................................................................................6 Building Challenges .......................................................................................................................................................................6 Residential Unit Production in Clarington......................................................................................................................................7 Built Boundary .............................................................................................................................................................................10 Share of Residential Building Permit Value in Durham Region....................................................................................................13 Share of New Residential Unit Permits in Durham Region .........................................................................................................14 Housing Market Indicators ...........................................................................................................................................................15 3.7.1 Clarington Housing Trends ................................................................................................................................................15 3.7.2 Regional Housing Trends...................................................................................................................................................16 3.7.3 GTA Housing Trends .........................................................................................................................................................16 3.7.4 National and Provincial Housing Trends ............................................................................................................................17 3.7.5 Economic Conditions .........................................................................................................................................................17 Short-Term Population Forecast ..................................................................................................................................................18 Planning for Intensification ...........................................................................................................................................................19 i
4.0 Non-Residential Growth ...............................................................................................................................................................22 Total Non-Residential Building Permit Value in Clarington ..........................................................................................................22 Share of Non-Residential Building Permit Value in Durham Region ............................................................................................24 Non-Residential Floor Space Production in Durham....................................................................................................................25 5.0 Key Projects and Initiatives..........................................................................................................................................................26 Climate Change ...........................................................................................................................................................................26 Secondary Plans ..........................................................................................................................................................................28 Affordable Housing ......................................................................................................................................................................30 Neighbourhood Character Study .................................................................................................................................................31 Zone Clarington ...........................................................................................................................................................................31 6.0 Synopsis and Short-Term Outlook ..............................................................................................................................................32 Residential Building Permit Activity ..............................................................................................................................................32 Non-Residential Building Permit Activity ......................................................................................................................................32 Short Term Forecast ....................................................................................................................................................................33 ii
List of Figures Figure 1: Total Building Permit Value in Clarington, 2009-2019................................................................................................................. 2 Figure 2: Proportion of the Total Building Permit Value by Residential/Non-Residential Sectors in Clarington, 2009-2019 ...................... 3 Figure 3: Total Building Permit Value in Durham Region, 2009-2019 ........................................................................................................ 3 Figure 4: Clarington’s Share of Total Building Permit Value in Durham Region, 2009-2019 ..................................................................... 4 Figure 5: Total Residential Building Permit Value in Clarington, 2009-2019 .............................................................................................. 6 Figure 6: New Building Permits Issued for Residential Units in Clarington, 2009-2019 ............................................................................. 7 Figure 7: Residential Unit Permits in Clarington by Type, 2009-2019 ........................................................................................................ 9 Figure 8: Map of Distribution of Building Permits in Clarington, Inside and Outside the Built Boundary, 2019 ........................................ 11 Figure 9: Percentage of New Residential Units Issued Inside and Outside the Built Boundary of Clarington, 2015-2019 ....................... 12 Figure 10: Share of Total Residential Building Permit Value in Durham Region, 2019 ............................................................................ 13 Figure 11: Average House Price in Clarington by Type, 2015-2019 ........................................................................................................ 15 Figure 12: Average Value of Single Detached Dwellings Versus Number of New Residential Units in Clarington, 2009-2019 ............... 15 Figure 13: Average Cost of a New Single Detached Dwelling in Durham Region, 2009-2019 ................................................................ 16 Figure 14: Map of the Greater Golden Horseshoe showing inner & outer ring municipalities; built-up areas; Greenbelt; Durham Region and Clarington.......................................................................................................................................................................................... 20 Figure 15: Intensification Targets and Boundaries from A Place to Grow (2019)..................................................................................... 21 Figure 16: Total Non- Residential Building Permit Value by Sector, 2015-2019 ...................................................................................... 22 Figure 17: Percentage Breakdown of Non- Residential Sector Building Permit Value, 2009-2019 .......................................................... 22 Figure 18: Share of Total Non-Residential Building Permit Value in Durham Region, 2019 .................................................................... 24 Figure 19: Production of Non-Residential Floor Space in Durham Region, by Municipality, 2015-2019 .................................................. 25 Figure 20 Secondary Plans in Clarington, 2019 ....................................................................................................................................... 29 iii
List of Tables Table 1: Five Year Average of Residential and Non-Residential Building Permit Values .......................................................................... 3 Table 2: Residential Unit Permits Issued by Area in Clarington, 2015-2019 .............................................................................................. 8 Table 3: Residential Unit Permits Issued in Clarington by Type, 2009-2019 ............................................................................................. 9 Table 4: Number of New Residential Units Issued Within and Outside the Built Boundary of Clarington by Area, 2019 ......................... 10 Table 5: Total Building Permit Values in Durham Region by Municipality, 2015-2019 (in millions) .......................................................... 13 Table 6: New Residential Unit Permits in Durham by Municipality, 2015-2019 ........................................................................................ 14 Table 7: Average House Prices in Clarington by Location, 2019 ............................................................................................................. 15 Table 8: Population Growth for Clarington and Durham Region .............................................................................................................. 18 Table 9: Household Growth for Clarington and Durham Region .............................................................................................................. 18 Table 10: Non-Residential Building Permits Issued in 2019 Over $1 Million ............................................................................................ 23 iv
1.0 Introduction Purpose of the Growth Trends Review Unless otherwise noted, data in this report regarding the Region of Durham or Clarington within the Region is from 2019 The Planning Services Department conducts on-going Annual Building Activity Review. monitoring activities to assess the effectiveness of the Municipality of Clarington Official Plan policies, as well as other The information sources in this report were released prior to the Municipal and Durham Region policies. The Growth Trends global COVID-19 pandemic. As a result, all projections Review reports on these monitoring activities to identify discussed may be impacted due to the unprecedented emerging development-related issues and trends within the economic environment caused by the COVID-19 pandemic. Municipality of Clarington. Building permit activity and other related data are used as indicators of housing and employment Publishing of Growth Trends Review activity within Clarington, the level of local investment and The Planning Services Department economic performance. has published the Growth Trends Review on an annual basis since Information Sources 2005. Copies of the document are The data collected and analyzed in this report is based on available from the Planning building permit and housing market information gathered from a Services Department directly or can variety of sources that include: be accessed online by visiting www.clarington.net. • Municipality of Clarington; • Region of Durham; If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. • Ministry of Municipal Affairs and Housing; 2131. • Statistics Canada; • The Bank of Canada; Contact Information • Canada Mortgage and Housing Corporation and; • Toronto Real Estate Board. Should you have any questions, comments, and/or suggestions Unless otherwise noted, data in this report regarding the concerning the Growth Trends Review, please contact the Municipality of Clarington is from Building Activity Update Planning Services Department by telephone at January 1 to December 31, 2019. 905-623-3379 or by email at planning@clarington.net. 1
Other compounding factors affecting the building permit decline 2.0 Overall Growth Trends in 2019 include new requirements in the Building Code, causing many builders pulled permits at the end of 2018. Additionally, Total Building Permit Value in Clarington new tests for mortgages such as the percentage of down payment and the increase in mortgage rates resulted in some Clarington’s total building permit value decreased by 69.3 per housing being beyond the means of new buyers. cent from $422.6 million in 2018 to $129.7 million in 2019 (Figure 1). Residential building permit values declined by 73.9 Overall, building permit values reflect fluctuations in both the per cent in 2019, from $343.4 million to $89.7 million. The value economy and one-time projects. Major building projects in the of non-residential building permits in 2019 decreased by 49.5 non-residential sector cause significant fluctuation in building per cent from $79.1 million to $39.9 million. permit values year- to-year. Section 4.1 highlights major non- residential building projects reported in 2019 – these are While these declines are significant, Clarington’s numbers are examples of projects that cause yearly fluctuations. It should be consistent with market trends that suggest that building noted that building permit fees increase by three per cent each construction peaked in 2017 with declining trends through 2019 year, effective on the first day of January, and therefore, a and stabilizing trends forecasted through 2021. 1 minor increase in annual building permit value occurs naturally. $450 Building Permit Value (Millions) $400 $350 $300 $250 $423 $380 $200 $362 $341 $327 $291 $290 $150 $203 $187 $100 $132 $130 $50 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 5 Year Moving Average Figure 1: Total Building Permit Value in Clarington, 2009-2019 New apartment building located at 290 Liberty St. N., Bowmanville 1 CMHC. (2019). Housing Market Outlook Fall 2019. 2
Overall, the five-year moving average depicted in Figure 1 is Table 1: Five Year Average of Residential and Non-Residential the best indicator of growth trends. Here it shows a sustained Building Permit Values rise in Clarington’s building permit values from 2013-2018 with Residential Non-Residential a drop in 2019. The yearly fluctuations of both residential and 5 Year Average 82.4% 17.6% total non-residential building permit values can be seen in 2019 69.2% 30.8% Figure 2. Total Building Permit Value in Durham Region 2019 $89,709,141 2018 $343,472,347 Durham Region’s total building permit value decreased by 2017 $330,300,324 $84.5 million between 2018 and 2019, from 2.1 billion to 1.9 2016 $320,328,005 billion. The five-year average, depicted as the trend line in Figure 3, shows that values are slowly increasing and have 2015 $291,322,557 remained relatively stable for the past decade. 2014 $217,649,678 2013 $119,417,902 $2,500 2012 $163,432,307 2011 $237,405,670 Building Permit Value (Millions) $2,000 2010 $154,857,538 2009 $80,592,782 $1,500 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $2,059 $1,974 $1,961 $1,000 $1,630 $1,526 $1,524 $1,485 $1,460 Proportion of Building Permit Value $1,391 $1,300 $1,064 Non-Residential Residential $500 Figure 2: Proportion of the Total Building Permit Value by Residential/Non-Residential Sectors in Clarington, 2009-2019 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 The proportion of residential building permit value for 2019, compared to non-residential, has fallen below the average of 5 Year Moving Average the past five years. However, the proportion of non-residential Figure 3: Total Building Permit Value in Durham Region, 2009-2019 building permits is 42.8 per cent higher than the five-year average. 3
Residential building permits accounted for 54.4 per cent while Share of Total Building Permit Value in Durham non-residential building permits accounted for 45.6 per cent. Region The total value of residential building permits in 2019 decreased by $403.1 million or 27.3 per cent, reaching a total Clarington made up 6.6 per cent of Durham Region’s total value of $1.1 billion. Non-residential building permit values building permit value in 2019, a decrease of 68.0 per cent from increased by $318.7 million or 55.9 per cent, reaching $899.4 2018. Clarington’s share of total building permit value in million in 2019. Durham varies year-to-year. Overall, the trend shows stability in Clarington’s share of total building permit value in Durham Residential Non- Residential Region (Figure 4). -27.3% +55.9% 25% Development in any municipality will fluctuate due to specific 20% Building Permit Value projects but these balance out over the larger region. The trend Share of Durham across Durham Region is stable and reflects general economic 15% conditions in the Greater Toronto Area (GTA). 2 The region-wide total permit values reached an all-time high of approximately 2 10% billion in 2018; 2019 has the second highest total building permit value since 2009 (Figure 3). 5% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 5 Year Moving Average Figure 4: Clarington’s Share of Total Building Permit Value in Durham Region Durham Region, 2009-2019 made up 7% of the total building activity in GTHA.2 2 Statistics Canada Table 32.2 (unpublished) 2019. Taken from York Region (2020). 2019 Growth and Development Review. 4
Policy Updates In July 2019, in response to the Ontario’s More Homes, More Choice: Ontario’s Housing Supply Action Plan, proposed Provincial efforts to review Ontario’s land use planning changes to the Provincial Policy Statement were released for legislation and policy framework continued throughout 2019. consultation. The goals of the proposed changes included The resulting changes will have a significant impact on the encouraging an increase in the mix and supply of housing and development process and on how the Municipality plans for and reducing barriers and costs for development and providing provides facilities and services for new development. greater certainty. In January, proposed changes to A Place to Grow, the Growth In addition to provincial policy change, Plan for the Greater Golden Horseshoe, were released. These regional policy change is also underway. changes sought to address potential barriers to new housing, In 2019 the Region of Durham launched job creation and business attraction, and to streamline the Envision Durham – a comprehensive process for transit growth. The new Growth Plan took effect on review of the Region of Durham Official May 16, 2019, replacing the previous version. Plan. This review seeks to plan for a progressive and forward-looking land use Through Bill 108, More Homes, More Choice Act, 2019, the planning vision for the region to 2041. Province introduced a range of changes across numerous statutes in an effort to cut red tape, reduce costs and increase At the Municipal level, the current Clarington Official Plan was housing supply. Bill 108 received Royal Assent in June 2019. adopted by Council (November 2016) and subsequently approved by the Region of Durham on June 19, 2017. Since that time, staff have been working on implementing the adopted Plan through new and updated Secondary Plans. Secondary Plans are the detailed land use and policy framework for specific geographic locations (more detail see Section 5.2). They implement the policies of the Official Plan at a neighbourhood level and provide more specific direction than the general designations of the Official Plan. As of the end of 2019, Staff are coordinating 11 Secondary Plans and 2 Subwatershed Plans. The total land area that is represented by these projects is approximately 1,930 ha of industrial, commercial and residential lands. Housing backing on to a stormwater management pond in Southwest Courtice Secondary Plan Area. 5
3.0 Residential Growth Total Residential Building Permit Value in Clarington Residential building permit values in Clarington have slowly risen from 2013-2018, reaching a high of $343.4 million in 2018. 2019 saw a significant decline in building permit values at $90.0 million, a decrease of 74.0 per cent. Fluctuation in building permit values occur because of economic conditions, changes to the Ontario Building Code and construction inflationary costs. Figure 5 illustrates the decline and Four storey condominium under construction at 65 Shipway Ave., Newcastle. resurgence of the residential building market over a 10-year period. Building Challenges $400 From a residential perspective, the servicing issues in $350 Bowmanville have been resolved. However, development in the Building Permit Value (in millions) Clarington Technology Park (Secondary Plan area) cannot $300 proceed without significant upgrades to and additional $250 extension of the sanitary sewer system from the Port Darlington Water Pollution Control Plant to the East, North and South $200 limits of the lands. $343 $330 $320 $291 $150 In Newcastle, the Municipality issued Site Plan Approval early $237 $218 $100 in 2020 and the Region is moving forward with plans to build a $163 $155 $119 $50 new Water Supply Plant to address future growth $90 $81 needs. Developers in North Newcastle have been working with $0 the Region on addressing the North Street sanitary sewer trunk 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 extension to service their draft approved plans; servicing should be available within two years. In addition, a sanitary sewer 5 Year Moving Average trunk to service the west side of Newcastle was recently Figure 5: Total Residential Building Permit Value in Clarington, extended across the 401 and will be extended to King Ave 2009-2019 West, west of Rudell Road, within 2020 and 2021. 6
In Courtice, the lands subject to Secondary Plans (South West, Of the total number of residential unit permits approved in South East, and Courtice Employment Lands) will be serviced 2019, the majority (91.0 per cent) were issued in the urban in part by a sanitary sewer trunk and watermain that the Region centres of Bowmanville and Newcastle (Table 2). Bowmanville is currently constructing from the Courtice Water Pollution contributed the highest share with 63.7 per cent. The number of Control Plant. rural residential building permits has averaged 30 per year over the past decade. The bulk of permits issued have typically been Residential Unit Production in Clarington in the rural areas of Darlington and Clarke, outside of the hamlets. In 2019, a total of 284 new residential unit permits were issued in the Municipality of Clarington. This is a 65.0 per cent In Clarington, there were 6 residential projects decrease from 2018, following an approximate decrease of valued at over $1 million in 2019. 16.8 per cent from 2017 to 2018 and a 2.3 per cent decrease from 2016 to 2017 (Figure 6). This is consistent with objectives in Clarington’s Official Plan, 1000 which direct the majority of urban development within Clarington’s three lakeshore urban areas while limiting Number of Building Permits Issued 900 800 residential growth in rural areas. This pattern of development is expected to continue, enabling the urban areas of Clarington to 700 increase gradually in population. 3 600 995 500 972 Clarington is affected by both growth-related Provincial policy 931 863 809 400 and legislation as well as trends in the GTA. The number of 657 593 300 permits issued in 2011 was higher due to changes to the 537 439 200 Ontario Building Code. Building permits were lower in 2019 as 284 273 100 a result of leveling of the market coupled with higher mortgage 0 rates and stricter mortgage stress tests which reduced demand, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ultimately driving down the number of residential transactions. The number of housing starts is expected to see a stabilizing 5 Year Moving Average trend until 2021, matching the historical average. 4 House sales Figure 6: New Building Permits Issued for Residential Units in are forecast to improve in 2020 and 2021. 5 Clarington, 2009-2019 3 Municipality of Clarington. (2017). Clarington Official Plan 2017 - “Chapter 4: Managing Our Growth”. 4 CMHC. (2019). Housing Market Outlook Fall 2019. 5 CMHC. (2019). Housing Market Outlook Fall 2019. 7
Despite the market stressors, increased immigration across the Clarington anticipates growth in all sectors of construction GTA and at the national level has created an overall rise in activity in 2020 as various Secondary Plans approach demand for housing over the last 10 years. completion, providing the land needed to support this growth. Table 2: Residential Unit Permits Issued by Area in Clarington, 2015-2019 2015 2016 2017 2018 2019 Units % Share Units % Share Units % Share Units % Share Units % Share Bowmanville 461 49% 521 52% 589 61% 724 89% 184 63.7% Courtice 292 31% 294 30% 112 12% 14 2% 12 4.2% Newcastle 154 17% 149 15% 227 23% 42 5% 67 23.2% Orono 0 0% 0 0% 0 0% 1 0% 1 0.3% Wilmot Creek 0 0% 0 0% 0 0% 0 0% 0 0.0% Darlington 8 1% 7 1% 13 1% 11 1% 10 3.5% Clarke 11 1% 15 2% 11 1% 6 1% 6 2.1% Burketon 0 0% 0 0% 0 0% 0 0% 0 0.0% Enfield 0 0% 0 0% 0 0% 0 0% 0 0.0% Enniskillen 0 0% 2 0% 15 2% 4 0% 4 1.4% Hampton 2 0% 1 0% 2 0% 0 0% 1 0.3% Haydon 0 0% 0 0% 0 0% 0 0% 0 0.0% Kendal 1 0% 0 0% 0 0% 0 0% 1 0.3% Kirby 1 0% 0 0% 0 0% 0 0% 0 0.0% Leskard 0 0% 0 0% 0 0% 0 0% 0 0.0% Maple Grove 0 0% 0 0% 0 0% 0 0% 0 0.0% Mitchell Corners 0 0% 0 0% 2 0% 0 0% 0 0.0% Newtonville 3 0% 3 0% 0 0% 5 1% 3 1.0% Solina 0 0% 3 0% 2 0% 2 0% 0 0.0% Tyrone 0 0% 0 0% 0 0% 1 0% 0 0.0% Total 933 100.0% 995 100.0% 973 100.0% 810 100.0% 289 100.0% 8
Because of the decline in the number of residential unit permits The most noteworthy change was in apartments, which grew by issued in 2019, almost all dwelling unit types saw a decline in 250 per cent from 28 units to 98 units. This housing mix the number of units as well. However, it can be noted that the supports new provincial and regional policy for densification mix of residential unit types was much different in 2019 than and overall intensification of built-up areas. any year prior. As seen in Figure 7, single detached, townhouses, and apartments each make up about one third of Table 3: Residential Unit Permits Issued in Clarington by Type, the housing mix. 2009-2019 2019 Single Semi- Single Detached Semi-Detached Townhouse Apartment Townhouse Apartments Total Detached Detached 27% 2% 36% 35% 2009 208 46 7 12 273 2010 347 114 111 21 593 2019 2011 527 110 137 89 863 2018 2012 327 88 108 14 537 2017 2013 217 86 121 15 439 2016 2014 411 142 89 15 657 2015 2015 490 78 99 264 931 2014 2013 2016 480 2 182 331 995 2012 2017 488 22 70 392 972 2011 2018 551 76 154 28 809 2010 2019 77 6 103 98 284 2009 Development charges by-laws must be updated every five 0% 20% 40% 60% 80% 100% years. Clarington will be enacting an updated development Single Detached Semi-detached Townhouse Apartment charges bylaw in 2020. Clarington’s Development Charges By- Figure 7: Residential Unit Permits in Clarington by Type, 2009-2019 law, 2015-035, which came into effect July 1, 2015, supported apartment growth. This housing mix was possible because the number of single detached units in Clarington reached a historic low in 2019 Clarington’s development charges by-law provides incentives (Table 3). The number of semi-detached units was the second for midrise residential development in the Revitalization Areas lowest it has been since 2009. The number of townhouse units of Bowmanville, Courtice, Newcastle, and Orono. saw a small decline. 9
Built Boundary Incentives are designed to encourage more compact mid-rise residential development. Clarington is positioning itself such The Built Boundary is part of the intensification targets set by that it will attract future residential developments that are of the Province of Ontario. As of 2015, the Region of Durham higher density. The Municipality’s objective is to provide must meet the goal of 40 per cent intensification for all opportunities for residential intensification and a broad range of residential development occurring within defined built-up areas housing types within the built-up areas to meet the changing across the Region. Intensification targets may be difficult to needs of residents. 6 achieve in some municipalities due to servicing issues and the extent of the built-up area. In 2019, 75% of Clarington’s residential growth was within the built boundary. Overall, the Region is meeting its targets as local municipalities, such as Clarington, are largely building within the built boundary. Table 4 shows the number of permits issued within and outside the built boundary in Clarington while Figure Rendering of proposed residential development along the Courtice Main Street. 8 shows their distribution in the Municipality. Table 4: Number of New Residential Units Issued Within and Council approved the Courtice Main Street Community Outside the Built Boundary of Clarington by Area, 2019 Improvement Plan (CIP) in November 2016. The CIP includes incentives to spur higher density projects along the Highway 2 2019 Within Outside Total corridor. It is anticipated that the impact of these incentives will Courtice 11 1 12 be seen in future building activity. The Bowmanville East and Bowmanville 138 43 181 Bowmanville West Secondary Plans are also striving for higher Newcastle 66 0 66 density development. Rural 0 26 26 Total 215 70 285 In 2019, the number of residential apartment units in Clarington increased by 250% from 28 units to 98. 6 Municipality of Clarington. (2017). Clarington Official Plan 2017 - “Chapter 6: Encouraging Housing Diversity”. 10
Figure 8: Map of Distribution of Building Permits in Clarington, Inside and Outside the Built Boundary, 2019 11
The intensification target for Clarington is 32.0 per cent 7. While 100% Clarington has been consistently exceeding this target, in 2019, 90% the Municipality had an all time high of 75.0 per cent of all new 25% Percentage of New Residential 80% residential development occurring within the defined built-up 46% 53% Building Permits Issued areas (Figure 9). In 2019, Clarington also surpassed the 70% 64% 60% minimum intensification target of 1,770 residential units built 60% within the built boundary by 2021. 8 50% It is expected that the ratio of building permits within and 40% 75% outside of the built boundary will fluctuate on a year-to-year 30% 54% basis. However, developments within the built boundary are 20% 40% 47% 36% likely to increase as policies in the Official Plan state that 10% priority will be given to those capital projects that are within the built-up areas. Furthermore, the percentage within the built 0% 2015 2016 2017 2018 2019 boundary is anticipated to increase over time as a result of higher intensification targets and environmental protection Within Built Boundary Outside Built Boundary areas and fewer options for greenfield development. Figure 9: Percentage of New Residential Units Issued Inside and Outside the Built Boundary of Clarington, 2015-2019 Newly completed four-storey residential building at Six-storey mixed use building under construction at 109 King Ave E, Newcastle.. 290 Liberty St. N., Bowmanville 7 Municipality of Clarington. (2017). Clarington Official Plan 2017 - “Chapter 4: Managing Our Growth”. 8 Municipality of Clarington. (2017). Clarington Official Plan 2017 - “Chapter 4: Managing Our Growth”. 12
Share of Residential Building Permit Value in Durham Region Ajax 6.4% Brock 7.9% Clarington 8.4% Whitby 41.5% Newly completed residential units at 1599 Green Rd., Bowmanville Table 5: Total Building Permit Values in Durham Region by Oshawa Municipality, 2015-2019 (in millions) 14.3% Ajax Clarington Oshawa Pickering Whitby Durham 2015 $124.7 $290.9 $454.4 $130.5 $127.9 $1198.9 Uxbridge 2.9% Scugog Pickering 2016 $188.6 $319.5 $332.3 $170.8 $180.6 $1268.1 2.2% 16.3% Figure 10: Share of Total Residential Building Permit Value in 2017 $149.7 $329.4 $483.6 $189.0 $109.4 $1378.1 Durham Region, 2019 2018 $100.2 $343.5 $308.6 $365.0 $273.3 $1478.1 Durham Region’s total residential building permit value declined from $1.5 billion in 2018 to $1.1 billion in 2019. Clarington 2019 $69.0 $90.1 $154.0 $175.7 $446.5 $1075.0 made up 8.4 per cent of the Region’s total residential building permit values in 2019 (Figure 10). While Clarington’s value has dropped after a steadily increasing trend, all other lakeshore Change 2018 to -31.0% -74.0% -50.0% -52.0% 63.0% -27.0% municipalities except for Whitby, also saw a declining trend in 2019 2019 (Table 5). 13
Share of New Residential Unit Permits in Durham Region Within the Region of Durham, a total of 3,130 new residential unit permits were issued in 2019, a decrease of 34.0 per cent from the previous year. Of this total, Clarington’s share of units was 9.3 per cent. While this is a significant decrease from last year, all other lakeshore municipalities except for Whitby, also saw a declining trend in 2019 (Table 6). Scugog, Uxbridge, and Brock saw slight increases, while Whitby made up 40 per cent of Durham’s total, a reflection of the building permit values discussed in Section 3.3. 2019 Residential units under construction at Green Rd. and Prince William Blvd. Ajax Clarington Oshawa Pickering Whitby 7.6% 9.3% 17.6% 16.3% 39.4% Between 2015 and 2019, 20% of the new Table 6: New Residential Unit Permits in Durham by residential construction in Durham Region Municipality, 2015-2019 occurred in Clarington. Ajax Clarington Oshawa Pickering Whitby Durham 2015 384 931 1388 379 458 3700 2016 805 994 903 347 668 3845 2017 438 976 1736 540 571 4468 2018 568 808 1263 1272 629 4729 2019 239 291 552 511 1232 3130 Change 2018 to -58.0% -64.0% -56.0% -60.0% 96.0% -34.0% 2019 Newly completed condo townhouses at 37 Donald Powell Cres., Newcastle 14
Housing Market Indicators $900,000 1200 New Residential Units Approved Price of Single Detached Dwelling $800,000 3.7.1 Clarington Housing Trends 1000 $700,000 $600,000 800 Clarington’s housing prices have increased steadily from 2015 $500,000 to 2019 (Figure 11). Detached dwellings have consistently held 600 $400,000 their value and been sold for more than any other type of $300,000 400 dwelling even though the number of new residential units has $200,000 fluctuated (Figure 12). However, all dwelling types have been 200 $100,000 increasing in value at relatively the same rate. The average $0 0 price of a single detached dwelling in Clarington increased in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 to $616,000, a 2 per cent increase. In comparison, the average price of townhouses and condo apartments have each Average Price of Single Detached increased by 9 per cent. Number of New Residential Units Approved $650 Figure 12: Average Value of Single Detached Dwellings Versus Average House Prices (Thousands) Number of New Residential Units in Clarington, 2009-2019 $600 $550 In Clarington, the average house prices by type also varies by $500 location. Table 7 shows a wide range in average single detached house prices while townhouse and condo-town prices $450 are consistent across locations. $400 Table 7: Average House Prices in Clarington by Location, $350 2019 9 $300 Single Townhouse Condo-Town $250 Detached Bowmanville $601,000 $475,000 $416,000 $200 2015 2016 2017 2018 2019 Courtice $625,000 $475,000 $421,000 Detached Semi-Detached Townhouse Newcastle $544,000 - - Condo-Town Condo Apt Other Orono $491,000 - - Rural $819,000 - - Figure 11: Average House Price in Clarington by Type, 2015-2019 Average $616,000 $475,000 $418,500 9 Toronto Real Estate Board. (2019). Community Housing Market Report Durham Region: Clarington Fourth Quarter 2019. Transactions below two are not recorded. 15
3.7.2 Regional Housing Trends 3.7.3 GTA Housing Trends 10 The housing sector is growing in Durham Region as buyers The Toronto Regional Real Estate Board (TRREB) states that from other regions look for larger homes at lower price points. 2019 saw a 12.6 per cent increase in GTA home sales compared In 2019, the average cost of a resale home in Durham to 2018. The sales growth was particularly strong in the second increased by 3 per cent from $593,902 to $611,342. The half of 2019. There was a steady increase of four per cent in average cost of new single detached dwelling in Durham average home price as a result of a decrease in new listings Region increased 9.5 per cent from $739,821 in 2018 to which increased competition between buyers. TRREB forecasts $810,424 in 2019. Ajax had the highest average cost of a new strong home ownership demand through 2020 as a result of single-detached dwelling ($1,222,907) followed by Whitby positive labour market conditions and low borrowing costs. ($906,034) (Figure 13). In 2019, the average price for a single detached dwelling in Clarington was $616, 000. The increase in In 2019, the average price for a home in the housing prices is fueled by a high demand for homes coupled GTA increased 12.6%. with a shortage of listings. The total sales and the average selling price are expected to rise $1,400 by approximately 10% on a year-over-year basis. TRREB $1,200 suggests that new listings will not keep up with sales growth, widening the imbalance between housing supply and demand. Cost (Thousands) $1,000 This will result in continued competition, leading to challenges of $800 housing affordability. TRREB notes that price growth will be most prominent in higher density low rise homes, such as semi- $600 detached and townhouses, as many home buyers seek more $400 affordable housing options. $200 The demand for rental housing has been strong in 2019 due to 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 increased job creation leading to increased immigration, as well as seniors and young people entering the rental market as it is Ajax Clarington Oshawa more affordable than home ownership. In 2019, there was Pickering Whitby improvement in the number of listings to the demand. This is Figure 13: Average Cost of a New Single Detached Dwelling in however not a likely trend and policymakers at all levels must be Durham Region, 2009-2019 aware of rental supply needs to support housing needs. 10 Toronto Regional Real Estate Board. (2020). Market Year in Review & Outlook Report 2020. Publication forecasts pre-date the onset of the CO-VID-19 pandemic. 16
Both young home buyers and seniors are driving the demand Labour markets have been strong in Ontario, leading it to be for multi-unit housing in urban centres to meet their lifestyle one of the main drivers of residential growth in Canada. In demands. Although the growth rate of the Canadian population 2019, Ontario saw a robust growth in housing starts and aged 25-34 is expected to slow, the GTA is expected to remain resales. This growth in residential investment is anticipated to the youngest aged region in the province. Changing continue in 2020 as a result of lower mortgage rates, a larger demographics are anticipated to alter market demand in the working population and growth of disposable income. 13 coming decade. 11 3.7.5 Economic Conditions 14 The Bank of Canada projects Canada’s economy will grow by 1.2 per cent in 2019 and 2.1 per cent in 2020. Global economic growth is “expected to slow to below 3 per cent in 2019, its weakest pace since the 2007-09 global economic and financial crisis.” In 2016, the Bank of Canada and the Government of Canada renewed Canada’s Agreement on the Inflation Control Target. Canada continues to remain close to the two per cent target which is measured by the total Consumer Price Index Completed section of Lakebreeze Subdivision at East Beach Rd, Bowmanville. (CPI). The CPI inflation rate declined from 2.3 per cent in 2018 to two per cent in 2019. It is expected to reduce to 1.8 3.7.4 National and Provincial Housing Trends 12 per cent in 2020 and return to 2 per cent in 2021. Housing starts in Canada are expected to stabilize in 2020 As expected, 2019 saw a fall in average annual real gross and 2021, after a peak in 2017, followed by a decline in 2018 domestic product growth, from 1.9 per cent in 2018 to 1.5 per and 2019. Home sales are expected to strengthen in 2020 cent in 2019. The numbers are expected to see a gradual and 2021 after a decline in 2019. Housing prices are also rise through 2020 and 2021. expected to grow steadily in 2020 and 2021 after a decline in 2019. 11 Pembina Institute and the Royal Bank of Canada. (2013). Priced Out: Understanding the factors affecting home prices in the GTA. 12 CMHC. (2019). Housing Market Outlook Fall 2019. 13 Bank of Canada. (2019). Monetary Policy Report – October 2019. 14 Bank of Canada. (2019). Monetary Policy Report – October 2019. 17
Short-Term Population Forecast 15 As seen Tables 8 and 9, Clarington’s total population and total number of households are expected to grow at a stable rate. Clarington’s population is projected to grow to 113,900 by 2023 However, Clarington and Durham both show a declining trend (Table 8). This translates to approximately 39,950 households in rates of change in population and household growth after (Table 9), with an anticipated ratio of 2.8 persons per peaking in 2020. household. From 2015 to 2023, Clarington consistently makes up about 14.5 per cent of Durham’s population and households. Table 9: Household Growth for Clarington and Durham Region Interestingly, Clarington’s rates of change are consistently Clarington % Change Durham % Change forecasted as lower than Durham Region’s, but Clarington’s 2015 94860 1.1% 666755 0.9% actual rates of range from 2015 to 2019, show rates of change higher than Durham Region. 2016 96490 1.7% 673040 0.9% 2017 98550 2.1% 682250 1.4% Table 8: Population Growth for Clarington and Durham Region 2018 100290 1.8% 691580 1.4% Clarington % Change Durham % Change 2019 102110 1.8% 699460 1.1% 2015 32580 1.38% 226480 1.07% Forecasted Numbers 2016 33225 1.98% 229005 1.11% 2020 105400 3.2% 723500 3.4% 2017 34020 2.39% 232495 1.52% 2021 108200 2.7% 745800 3.1% 2018 34710 2.03% 236040 1.52% 2022 111100 2.7% 769800 3.2% 2019 35435 2.09% 239100 1.30% 2023 113900 2.5% 793700 3.1% Forecasted Numbers 2020 36680 3.51% 247540 3.53% Clarington has the highest percentage of homeownership versus rental in Durham Region, reaching 88.1 per cent owners 2021 37750 2.92% 255520 3.22% in the 2016 Census of Population. Durham has steadily 2022 38870 2.97% 264100 3.36% increased in population and households and has also seen a 2023 39950 2.78% 272860 3.32% slight increase in the proportion of immigrant population. Clarington’s share of Durham’s jobs and businesses in 2019 Clarington has the highest percentage of was 10.8 per cent and 11.7 per cent respectively. Durham has experienced an increase of 0.8 per cent in businesses and 3.1 homeownership within Durham Region. per cent in jobs from 2018. 16 15 Region of Durham. (2019). Monitoring of Growth Trends: Commissioner’s Report #2019-INFO-90 16 Region of Durham. (2019). The Region of Durham Business Count (Highlights) 2019. 18
Planning for Intensification These density targets and policies will be integrated into the Region’s policies; however, they are currently based on the The 2014 Provincial Policy Statement (PPS) requires planning requirements in the 2006 Growth Plan (Figure 21). authorities to identify appropriate locations for intensification opportunities, as well as establish minimum intensification Based on the Growth Plan and current targets in the Region’s targets based on local conditions. According to the PPS, Official Plan, upper and single-tier municipalities, such as the “intensification” is defined as the development of a property, Region of Durham, are to direct a minimum of 40 per cent of all site or area at a higher density than currently exists, through: new residential units to the built-up area. Durham Region set Clarington’s minimum intensification allocation to 32 per cent, a) Redevelopment, including the reuse of brownfield sites; which is 13 per cent of the Regional total. b) The development of vacant and/or underutilized lots within previously developed areas; Clarington has surpassed its c) Infill development; and intensification target of 32%. d) The expansion or conversion of existing buildings. The policies in Clarington’s Official Plan require a minimum The Growth Plan for the intensification target of 32 per cent for all residential Greater Golden Horseshoe, development in the built-up area by 2021, and 40 per cent A Place to Grow, was thereafter. Figures 14 shows the Municipality of Clarington, its updated in 2019 and came urban areas and designated greenfields, within the context of into effect on May 16, 2019. the Greater Golden Horseshoe. Figure 15 shows a conceptual A Place to Grow (2019), is a example of rural/agricultural, designated greenfield, and built provincial policy that boundary areas. The growth targets are optimistic compared to prioritizes intensification past trends. The Municipality is required to plan on this basis through density targets for and is required to update these policies in keeping with the built-up areas and 2019 Growth Plan. greenfields. The density Directing new residential development to existing urbanized targets ensure that land is lands, the 2019 Growth Plan requires a greenfield density utilized efficiently to target of 50 residents and jobs per hectare – the minimum accommodate future growth density needed to support frequent transit service. These while protecting natural intensification objectives focus on complete communities that areas and providing for support active transportation and encourage the integration and complete communities. This Plan projects 1.19 million residents sustained viability of transit services. and 430,000 jobs in the Region of Durham by 2041. 19
Figure 14: Map of the Greater Golden Horseshoe showing inner & outer ring municipalities; built-up areas; Greenbelt; Durham Region and Clarington 20
2006 Growth Plan: • A minimum of 40% of all residential development within the delineated 2006 Growth Plan: built-up area Greenfield Density • Intensification minimum of 32% after • 50 residents/jobs per ha 2021, 40% by 2031 2019 Growth Plan: 2019 Growth Plan: Greenfield Density • A minimum of 50% of all residential • 50 residents/jobs per ha development within the delineated built-up area • 200 residents/jobs per ha in urban growth centres Figure 15: Intensification Targets and Boundaries from A Place to Grow (2019) 21
4.0 Non-Residential Growth Within the non-residential sector in 2019, the percentage share of building permit values by sector were: Total Non-Residential Building Permit Value in Industrial Government Commercial Institutional Agricultural Clarington 11.3% 1.5% 11.6% 2.2% 4.2% The total value of non-residential building permits issued in Clarington was $39.9 million in 2019. Industrial development 2019 largely dominates the non-residential building permit values in 2018 Clarington; the total non-residential building permit values 2017 reflect the changes in the industrial building permit value 2016 (Figure 16). There was a significant spike in industrial building 2015 permit values in 2018 as a result of building permits issued to 2014 Toyota Canada Inc. for the Parts Distribution Centre, totalling 2013 $39.0 million. 2012 2011 $80 2010 2009 $70 Building Permit Value (Millions) 0% 20% 40% 60% 80% 100% $60 Percentage Share of Non-Residential Sector $50 Building Pemit Values $40 Industrial Commercial Government Institutional Agricultural $30 Figure 16: Percentage Breakdown of Non- Residential Sector Building $20 Permit Value, 2009-2019 $10 Non-residential building permit values fluctuate greatly year-to- $0 year. Additionally, the total permit values for all non-residential 2015 2016 2017 2018 2019 projects vary due to major projects requiring permits to be paid Industrial Government at the beginning but construction occurring over the next Commercial Institutional several years. In Figure 17, agricultural, government, and Agricultural Total Non-Residential institutional building permit values remain fairly stable due to the lower scale and cost of structures when compared to other Figure 17: Total Non- Residential Building Permit Value by Sector, building projects. 2019 had a total of 14 non-residential projects 2015-2019 with building permits over $1 million (see Table 10). 22
Table 10: Non-Residential Building Permits Issued in 2019 Over $1 Million Owner Location Description Value ($) Type Algoma Orchards Ltd. 201 Regional Road 42, Clarke Additions to Cold Storage & $2,500,000 Agricultural Packing Facility Almet Farms Ltd. 2575 Concession Road 7, Poultry Barn $1,700,000 Agricultural Darlington 2500030 Ontario Inc. 11 Spicer Square, Bowmanville Car Dealership (Hyundai) $3,991,012 Commercial Courtice Development Group Inc. 1405 Bloor Street, Courtice 2 Storey Retail and Office Building $2,896,149 Commercial 2649328 Ontario Inc. 330 Lake Road, Bowmanville Assembly Shell Building with $1,439,460 Commercial Industrial Portion (Joey's World) Valiant Rental Inc. 1565 Green Road, Bowmanville Tim Horton's Restaurant $1,100,000 Commercial Newcastle Marina Villa Ltd. 65 Shipway Avenue, Newcastle Parking Garage $3,175,200 Industrial Goldmanco Inc. (1728589 On Inc.) 2805 Trulls Road, Courtice Site Servicing $2,100,000 Industrial Toyota Canada Inc. 1050 Lambs Road, Bowmanville Shelf & Racking $1,500,000 Industrial Regional Municipality of Durham 1998 Bowmanville Avenue, Hazardous Waste Depot & Office $1,300,000 Industrial Bowmanville Ontario Power Generation 2151 Energy Drive, Darlington Transport & Work Equipment $1,000,000 Industrial Storage Ontario Power Generation 2151 Energy Drive, Darlington Salt & Sand Storage $1,000,000 Industrial Ontario Power Generation 2151 Energy Drive, Darlington HVAC Upgrade $1,000,000 Industrial Kawartha Pine Ridge District 1717 Nash Road, Courtice Interior Renovations $1,200,000 Institutional School Board (Manufacturing, Carpentry Shops & Science 23
Share of Non-Residential Building Permit Value in Durham Region Non-residential building permit values in Durham Region rose to $899.4 million in 2019, a 54.9 per cent increase from $580.7 million in 2018. Clarington’s share of the total non-residential building permit value was 4.4 per cent in 2019 (Figure 218), following a share of 6.5 per cent in 2018. From 2018 to 2019, Pickering saw a remarkable share value gain of 45 per cent. This is due to the construction of the Durham Live project- a new entertainment and tourism hub including a hotel, casino, event venues, and other amenities. All other local municipalities experienced a significant decline in their share. Newly completed Tim Hortons at 1565 Green Rd., Bowmanville Ajax Brock Whitby Clarington 1.6% 0.5% 10.7% 4.4% Uxbridge 2.8% Scugog Oshawa 1.2% 19.3% Pickering Newly completed company office, shop, and washbay for Boyle 59.5% Excavating at 210 Baseline Rd. E., Bowmanville Figure 18: Share of Total Non-Residential Building Permit Value in Durham Region, 2019 24
Non-Residential Floor Space Production in Durham The past few years have shown varying levels of non- residential floor space production in the lakeshore municipalities of Durham (Figure 19). The total non-residential floor space production in Durham declined by 40 per cent from 4,235,000 square feet in 2018 to 2,541,400 square feet in 2019. As a result, all local municipalities except for Oshawa saw a decline. Oshawa saw a significant increase by 66 per cent. Despite the decline, Clarington still had third largest share Region wide at 393,600 square footage. Rendering of a mixed-use development that will include commercial space, Shell gas station, Tim Hortons, and eight storey residential building, at Bloor St and Townline Rd. S. in Courtice. 1200 The year-over-year change in non-residential floor space 1000 production for the Region increased by 70.3 per cent in 2018, a Square Footage (Thousands) steady recovery from a low in 2015. Much of Clarington’s floor 800 space has been related to the energy and industrial sectors. Major contributors of this growth include Toyota Canada Inc., 600 and Ontario Power Generation. 400 200 0 2015 2016 2017 2018 2019 Ajax Clarington Oshawa Pickering Whitby Figure 19: Production of Non-Residential Floor Space in Durham Region, by Municipality, 2015-2019 Toyota Eastern Canada Parts Distribution Centre. Completed in 2019; located at 1050 Lambs Rd., Bowmanville 25
5.0 Key Projects and Initiatives The Strategy will help to define the role of the Municipality, partner organizations and the private sector in providing EV Climate Change infrastructure and services and promote EVs adoption in the community. The Municipality of Clarington is taking actions to respond to a changing climate. In May 2019, the Municipality hired a Concurrent with the Climate Change Response Coordinator and formed an inter- development of the departmental staff working group to develop the Clarington Strategy, the Climate Action Plan. The group is working to strengthen Municipality sought municipal policies and practices to reduce greenhouse gas Federal funding as part pollution, identify and reduce the risks and vulnerabilities of a region-wide associated with climate change, improve corporate resilience to collaborative to climate change, and safeguard community wellbeing. The establish a network of Clarington Climate Action Plan is currently under development Level 2 EV charging and is slated for completion in late 2020. stations across Durham Region. Funding was awarded in December 2019 and will contribute to the installation of 60 Level 2 EV chargers across 21 municipally owned, publicly accessible sites across Durham EV Charging station at Garnet B. Rickard Recreation Complex in Bowmanville. by Fall 2020. The Municipality is collaborating with the Region to support community-level climate action through the Durham Community Sandbagging during flooding at Cedar Crest Beach, Bowmanville. Climate Adaptation Plan (DCCAP) and the Durham Community Collaboration is an important component of Municipal climate Energy Plan (DCEP). Both the DCCAP and DCEP are being action planning. The Municipality has partnered with Trent led by the Region and were endorsed in principle by Clarington University Durham Campus to develop the Clarington Council in 2017 and 2019, respectively. Community Electric Vehicle (EV) Infrastructure Strategy. 26
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