Volkswagen plant will add to growing housing crunch in London and St. Thomas, Ont.
While interest rate hikes have slowed the housing market in London and St. Thomas, it is not likely to last long.
And, the president of the London St. Thomas Association of Realtors said the spring rush is not the only reason.
“It’s just a short-lived situation. We’re going to have so many jobs coming into this area that the housing is really going to get into some kind of a crisis again,” predicted Adam Miller.
In Miller’s opinion, London and St. Thomas are ripe for growth in the wake of the recent announcement of a Volkswagen EV battery plant in St. Thomas.
The size of the facility or the number of jobs it will bring has not been made public. But the amount of land secured to build it demonstrates significant employment.
The new jobs will add to the 2,000 people already seeking or soon to be seeking housing to work at either the new $772-million Maple Leaf Plant or Amazon’s new fulfillment centre.
All are between London and St. Thomas.
Miller said that is where employees moving to work at Maple Leaf are looking to live, and with more coming from Amazon and eventually Volkswagen, he said new homes will be needed.
Adam Miller, president of the London St. Thomas Association of Realtors is seen on March 20, 2023. (Sean Irvine/CTV News London)
“So they’re going to be starting development that we probably haven’t seen for 30 or 40 years. Builders moving to smaller centres and putting in large neighbourhoods," Miller said.
But can it be done in time for Volkswagen?
Builders are already struggling to find skilled trades to build homes, while at the same time balancing housing starts amid interest rate hikes and mild recession talks.
“Well, we need to make sure we have the housing supply to support the construction and the operation that this plant is going to offer us,” said Angela De Vries, executive officer of the St. Thomas & Elgin Home Builders Association.
But it will take cooperation to meet housing goals beyond the 500 a year St. Thomas Mayor Joe Preston has already pledged.
Still, De Vries said builders are up to the challenge.
“It is definitely going to be busy, but as long as we have the approvals and processes in place, we’ll be able to accommodate and get these things done,” she said.
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