Articles tagged with "Forecast"

In the second quarter, the U.S. hotel construction pipeline saw a 3% year-on-year increase. The growth is driven by higher-tier and extended stay hotels, with expansion expected to continue into 2025 according to Lodging Econometrics. This trend highlights a robust demand for luxury and long-term accommodation options.

The Bank of Canada has maintained its interest rates for the third consecutive time, maintaining stability in the housing market. According to economists and real estate experts, this decision suggests that the market may not require another rate cut to improve. The current conditions in the housing sector are being viewed as a 'new normal,' which resembles the 'old normal,' due to steady economic parameters. This stabilization points toward a period of gradual recovery for the housing market without further intervention.

A new white paper highlights the slow adoption of construction technology (contech) as a potential barrier to data center projects, which are crucial for the development of artificial intelligence globally. The report warns that without broader technology implementation, the construction sector might hinder progress in AI advancements. It stresses the need for the industry to embrace innovative technologies to keep pace with the global demand for data infrastructure.

Shindico and Cadillac Fairview have paused their planned $1 billion mixed-use development in Winnipeg's Polo Park area due to shifting economic conditions. The 84-acre transformation, which includes the Polo Park shopping mall and former Canad Inns Stadium site, is being reassessed, with challenges such as high interest rates and a drop in international students affecting the timeline. The project remains a significant opportunity for local businesses, and updates are expected within the year. Provincial policy changes in 2021 have facilitated new housing considerations near the site.

The City of Toronto has launched a new Housing Development Office with the aim to separate policy from execution, part of efforts to address the housing crisis. The office will be led by Hugh Clark and work closely with other divisions like the Development Review, focusing on building 65,000 new rent-controlled homes by 2030. Jag Sharma, Deputy City Manager, emphasizes a unified approach and streamlined processes to expedite housing development. The initiative responds to previous criticisms of slow and inconsistent decision-making within city-led projects.

Stanley Black & Decker, the world's largest toolmaker, plans to raise prices again as it navigates an $800 million tariff impact. The company is adjusting its supply chain and implementing a cost reduction program to enhance profitability. These measures are part of its strategy to mitigate the effects of the tariffs.

Oxford Economics analysts assert that Canada is currently in a recession, largely attributed to the ongoing trade war with the United States. The consequence has been a significant decline in exports and a halt in capital expenditures, particularly impacting the construction sector. This economic downturn has led to apprehension among constructors as new projects and spending are being postponed.

The operator of the Trans Mountain oil pipeline is planning to initiate a formal process later this year to assess the interest in expanding the pipeline's capacity. This indicates potential growth opportunities in the transport of oil across regions served by the pipeline. The decision points towards strategic developments in infrastructure to accommodate increasing energy demands.

The Federal Reserve's decision to maintain the current interest rates has disappointed those hoping for a summer cut. Despite this, builders in the construction industry are adapting their strategies to continue their operations. The steady interest rates impact planning and budgeting, requiring adjustments in project approaches to stay competitive.

WorkSafeBC has announced that the preliminary average base premium rate for 2026 will remain unchanged at $1.55 per $100 of assessable payroll. This rate has been consistent for nine years, allowing the agency to return surplus funds to employers due to strong financial performance. Approximately $570 million will be returned in 2026 through reduced rates, and changes in industry rates will see 39% of employers experiencing decreases, while 47% will see increases. The final rates will be approved in November by the board.

The recent increase in immigration enforcement on construction sites has led to a rise in worker absenteeism and potential delays in project timelines. Experts predict that there may be a shift in policies addressing this issue in the future. The crackdown is impacting the construction industry's labor pool significantly, with a focus on how it will adapt moving forward.

In the Greater Toronto Hamilton Area (GTHA), 65% of landlords are offering rental incentives due to an increase in available units and a higher vacancy rate. This trend is driven by lower immigration, more building completions, and reduced turnover rates. Despite a record number of leases signed in Q2 2025, rental rates have declined due to high supply and competitive pressures. It is expected that the rate of completions will fall, leading to higher rents in the near future.