The Toronto Star recently reported on some of the challenges that new home builders in Ontario are facing in an article that includes quotes from Greg Gee, President and CEO of Tarion, and Mitch Cohen, President of The Daniels Corporation.

Both Mr. Gee and Mr. Cohen are quoted from speeches that they gave September 20th at the Tarion Awards of Excellence, an award program held annually to honour builders that excel in customer service.

The article suggests that two of the most pressing challenges include meeting the enhanced customer service expectations of new home buyers and keeping the prices of new homes affordable at a time when land available for development is decreasing and energy prices are increasing.
 
Mitchell Cohen, president of The Daniels Corp. stated in his remarks that “The challenge today is to ensure that we can successfully deliver homes and condominiums that are finished, clean, beautiful, and above all, ready on time.” Mr. Cohen said that if builders don’t meet these goals, customer dissatisfaction would rise and the new home industry in Ontario would suffer.

Greg Gee, President and CEO of Tarion, commented further on this challenge by saying: “The consumer landscape has unquestionably shifted, and new home buyers today have higher expectations, not only for the quality of their homes, but for the whole purchasing and after-sales service process.” He added: “Toronto home builders are going to have to put [the consumer] higher up on the radar screen.”

The challenge of new home affordability was addressed in the context of Ontario’s recent greenbelt initiative, which limits land development in some areas and promotes building homes in higher densities in existing cities and suburbs. 

In his remarks, Mr. Cohen asked the audience of new home builders: “Can we find ways to bring down the costs of home ownership when the cost of land and construction are going through the roof? Can we build energy-efficient homes that will cost less to heat and cool?” Mr. Cohen is optimistic, predicting in his remarks that the new home industry can “meet these challenges and much more”.

By speaking to an audience of new home builders about their tough challenges ahead, Mr. Gee felt Mr. Cohen was taking a leadership role in the industry. Said Mr. Gee, “That takes a lot of courage to come and offer that kind of challenge to your peers.”