The Relationship Between the Rising Price of Oil and Gas and Real Estate - Part 5

This week’s topic is how rising oil and gas prices will effect the building code. Each year our building codes are revised and enhanced to increase the safety and quality of our housing. This also inevitably leads to the increase in the cost of new construction. For example, with climate change and the consequent wind storms etc. not normally experienced in our area, the building code was amended to require that shingle nails be much be longer. This of course means more cost for longer shingle nails and this is just a minute example of how the code effects over all costs and begins to add up on a construction project.

Ultimately the building code will demand increased energy efficiency. R ratings are likely to increase, new and improved insulation materials will be employed, hot water systems that are locale specific rather than one hot water tank inefficiently supplying the whole house may be considered as mandatory one day. New roofing materials that in themselves have a greater R factor will be considered.

Eco-block insulated construction which is much more energy efficient than frame construction could one day be mandatory. This would cause an enormous cost to the developer, but much increased energy efficiency to the end user.

Houses may be mandated to be built in such a way that they are solar efficient by the nature of their orientation on the property. Solar panels may also be mandated one day.

These are just a few examples of what are, and what may become reality for Canadians in the years to come as a result of increasing oil and gas prices.

Best Regards,
The Debbie Simmonds Lifestyles Real Estate Team