Q and A with Greg Graham, COO of Cardel Homes

by Marlene Eisner 09/10/2019

Greg Graham is the chief operating officer of Cardel Homes and the Cardel Group of Companies (Ottawa, Calgary, Denver and Tampa) and serves the board of Cardel. He also serves as the regional president of Cardel Homes, Ottawa. Greg sits on the board of directors of Tarion Corporation and is the past-president of the Greater Ottawa Home Builders’ Association, where he remains active on the board.

Greg recently shared with New Home + Condo Guide his knowledge of, and insight into, the Ottawa housing market.

New Home Condo Guide: From a background in banking and technology, what made you move into the realm of real estate?

Greg Graham: I have a pretty diversified background and, in most cases, there were elements of real estate involved. From real estate financing and lending to leasing, land approvals and construction, real estate has been a part of my career from the outset. That said, in all cases, it has really been about business. I have a passion for business (any business). I enjoy the strategy, leadership, planning and execution it takes to run a business. The goal of driving value for shareholders and customers so that everyone has success is my motivation.

NHCG: Years ago, single-family dwellings accounted for about 70 per cent of Ottawa’s new-home market while multi-units were 30 per cent. From your perspective and experience – and Cardel’s 20-plus years in Ottawa – what changes have contributed to this shift in the housing market in Ottawa over the last couple of decades?

GG: Homeownership remains a priority for many Canadian citizens. The housing industry continues to change and adopt to the social, economic and political situations confronting it. Builders are innovative and creative when looking at their business models (the industry is not one that gets bailed out by government during tough economic times). Government policies and regulations have shaped much of the industry over the last 20+ years. Canadian cities (not just Ottawa) have established development boundaries that restrict building outside those boundaries. That restricts land within a market and when there is growing housing demand, it inflates land costs.

The builders / developers are also responsible for designing the community, paying for and installing sanitary, water, storm sewers, ponds, roads, lights, etc. Add to that the cost of materials to construct a home, new building code requirements, energy saving technologies, ever-increasing costs for labour (we currently have a labour shortage) and materials have all impacted costs. Plus, government-imposed taxes and fees and the financing stress tests and you see the concern with affordability. With ever-increasing costs, homes on larger lots have become unattainable for many. As a result builders, with their architects, have creatively improved the design of semis, villas, townhomes and condominiums. These tend to take less land, have a smaller footprint and thus are less expensive (more affordable) to construct. The industry expects this trend to continue with a focus on intensification and densification. I believe we are seeing the new norm of 70-75 per cent multi-family and 25-30 per cent single family.

NHCG: Compared to the rest of the country, Ottawa is still considered an affordable place to live. Is owning a new home attainable for most first-time buyers in the city?

GG: I would like to think that Ottawa (in comparison to other Canadian cities,) remains affordable. BUT that is changing. First-time buyers are finding it more and more difficult to get into the housing market. With increasing costs, down payment requirements and financial stress tests, it has become very difficult for first-time and immigrant buyers to save up and qualify for financing. However, first-time buyers / Millennials are getting very innovative in their thinking. Some will choose to rent for much longer periods of time, while others will try co-ownership, multi-generational homes or co-ops. Then, of course, there is the bank of ‘mom and dad’ to help with down payments.

The other trend we are seeing is that first-time buyers are moving to outlying communities such as Carleton Place, Almonte, Kemptville and Rockland, where homes are more affordable. There are real savings by relocating to those communities and it helps to get into the housing market. Once they can establish credit and build some equity, they may (or may not) consider re-locating back into Ottawa.

NHCG: What are some of the challenges builders face in the current housing scene in Ottawa?

GG: 1. Access to skilled labour. Labour today and in the future is going to be a challenge.

2. Continued delays with bureaucratic approvals and bureaucratic red tape.

3. Government-imposed taxes and fees (industry members say that the government sees it as their ATM!)

4. Access to land and the cost of land due to development restrictions

NHCG: Do you think government on all levels (municipal, provincial and federal) really understand the country’s housing needs and are doing enough to make homeownership accessible?

GG: I want to be careful here. Our industry sees governments (at all levels) as our partners and together we can build sustainable, livable and affordable cities. Policies are established as guidelines, which are designed to be adaptable to economic, social and community needs. When developers seek changes, the community defaults to developers unduly influencing political decisions. That is absolutely false. As a result, politicians are cautious when it comes to development and housing. I don’t believe they don’t know or don’t care, but there are always opportunities for education and learning, where there is a willingness. I think politicians are most worried about serving their constituents and being re-elected.

Kids across the Ottawa region took part in the Cardel Lemonade Standemonium on Saturday, June 1, 2019, hosting lemonade stands in their neighbourhoods. They raised $136,701 and counting! Proceeds benefit the Ottawa Regional Cancer Foundation and Candlelighters Childhood Cancer Support programs.

NHCG: Cardel has a reputation for being active in the community, especially in the fight against cancer and in the area of empowering women in the construction industry. Why are these two causes close to Cardel’s heart?

GG: Through our ownership group and leadership team, there is a real commitment to community and charitable initiatives. Each of our Cardel communities (Ottawa, Calgary, Denver and Tampa) have specific charities that they are involved in on an annual basis. Some of this participation is directed by staff committees and some by our leadership group. Here in Ottawa, we are involved with Ottawa Regional Cancer Foundation, Dreams Take Flight, Children’s Aid Foundation, Queensway Carleton Hospital Foundation, Ottawa Hospital Foundation, Carleton Place Hospital, Algonquin College Foundation and Women of Inspiration. We also support several smaller initiatives that we believe help strengthen our community and its citizens.

The fight against cancer is near and dear to all of our hearts. Ask anyone and they have either been personally touched or know someone who has been affected by cancer. We have several staff that have been personally touched including myself. While my dad is a cancer survivor, I unfortunately lost my wife to cancer after a very courageous battle. The fight against cancer will always be one of our local initiatives.

Supporting women and youth is also a Cardel priority. No matter who you are – man, women or child – that one special person in all our lives is our mom. Moms are the most loving, caring, giving, sharing people we will ever be touched by. They are strong, determined, committed, dedicated and fiercely loyal. These are the women we support and celebrate.

We need these incredible and inspirational individuals in our businesses, helping lead, direct, manage, and support.

Cardel is proud to have some incredible female leaders involved throughout our organization. These are all Women of Inspiration who have risen to the challenge, overcome obstacles and are passionate about their work and contributions.

Through our Women in Trades Scholarship with Algonquin College, we continue our work to support women interested in entering the trades.