Fort McMurray Set For Biggest Home Building Boom in Decades

According to Canada's Mortgage and Housing Corporation, CMHC, Fort McMurray could see the biggest building boom in decades as work has begun to restore thousands of homes that were destroyed by wildfire.

In reference to a new report, CMHC stated that housing starts could jump to 2,500 as large scale efforts get underway to rebuild. CMHC market analyst, Tim Gensey mentioned that this is anticipated to be the highest new home construction activity that Fort McMurray has seen in 20 years. He also pointed out that the rebuilding of homes is not likely to begin until next year.

The wildfire wrecked almost 10 per cent of structures in Fort McMurray, an estimated 2,400 buildings. Out of those 2,400 buildings, almost 1,800 were single-family homes that were located in the community's most established neighbourhoods such as Waterways, Beacon Hill and Abasand.

This wildfire is deemed to be the most expensive natural distater in Canadian history. According to the Insurance Bureau of Canada, Fort McMurray's wildfire cost insurance companies over $ 3.5 billion. Insurers have received nearly 23,000 claims from the fire, claims relating to smoke and water damage.

The process of rebuilding homes in Fort McMurray is expected to be complex and time-consuming. Chief Executive of the Alberta Office of the Canadian Home Builders' Association, Jim Rivait said recovery efforts will likely be affected by the economic downtown as many construction workers and home builders had already left town prior to the fire.

Reference:

The Globe and Mail

http://www.theglobeandmail.com/…/fort-mcmu…/article31046442/