“Intensification” is Up in Ottawa!

The City of Ottawa is on a mission – to build up rather than out; or rather, to get more of its residents living in apartment buildings or condos closer to the downtown core, and less in the suburbs, such as Kanata. And, according to the City’s Annual Development Report, they’ve been successful so far.
Within the report there are standards outlined for “intensification” – the process of building more multi-family homes within a targeted area. In 2010, the total of homes built within that area was 43.8%; this was up from the average from the four years prior, when it was 37.7%. Another positive indicator from the report was that the majority of the new homes that met the intensification standards, were located in areas that were close to rapid-transit stations; another indication that more people are choosing to live within those targeted, busier areas. And if the fact that they’re reaching their goal isn’t enough to keep the City happy, they can also be encouraged by the fact that 25% of those homes started in 2010 replaced homes that were deemed as old and replaceable by the City; revitalizing and encouraging regrowth in the area.
But, there are still some flaws – one of those flaws is finding a way for Ottawa’s residents to be able to afford to live in those newly “intensified” homes. In order for a home to be deemed ‘affordable,’ the homeowner should be able to purchase it without spending more than 30% of their income on mortgage payments. Last year, the same year that more homes met intensification standards, the City only had a goal of 25% of those homes being affordable. Even more sadly, only 9.2% of them were.
While that’s still up from the 4.1% it was in 2009, it’s still nowhere near close to the City’s goal; nor does it bode well for the majority of those looking to move into those homes that are being built to meet the intensification goal. But it’s not all bad news. After all, the City is reaching its intensification goals; and building denser populations always means growth for the City and it’s economy. And, with mortgage rates being so low, the City is sure that next year’s report will not only show even more intensification, but also more affordable homes within those intensified boundaries.