A new government report suggests greener homes in urban areas close to public transit are crucial to reducing the housing sector's impact on the environment.

The Canada Mortgage and Housing Corp.'s annual housing assessment states Canadian developers need to slow urban sprawl and focus building in high-density areas in order to reduce greenhouse gas emissions.

The national housing agency found that downtown living, which provides easy access to schools, workplaces and shopping, leads to reduced automobile use. Better designed suburbs result in less short-distance driving and lower greenhouse gas emissions.

"If the home is built in an urban area along a transit line than the studies show, people in the home will use their cars less and therefore they will generate less greenhouse gas and will tend to use public transit more," Ian Melzer, manager of the housing needs and policy research group with HMHC, told CTV.ca on Monday.

The Canadian government estimates there are some 18 million passenger vehicles on the road. These vehicles account for:

  • 21 per cent of nitrogen oxide (NOx)emissions
  • 51 per cent of volatile organic compound (VOC) emissions
  • 4 per cent of fine particulate matter (PM 2.5)emissions

The report also found that infill developments -- buildings erected on underutilized land within a city-- were found to be more effective than greenfield suburban developments in reducing greenhouse gases related to vehicles.

Greenfield developments occur on underdeveloped land -- typically used for agriculture or left to nature -- on the edge of urban areas.

"Infield developments are developments in spaces where there are already homes around, so they are already close to the centre of the city, where the greenfield developments, by definition, are on the outskirts of the city and are farther away from jobs and shopping," Melzer said.

The 2007 report states homes continue to be major consumers of energy, land, water and raw materials. The residential sector is responsible for 60 per cent of water consumption and 17 per cent of energy used.

Researchers found that when energy-efficient practices are implemented on a large urban scale; they not only increase the value of the property but save the owner a substantial amount on energy bills.

The CMHC recommends using:

  • Solar power panels;
  • Solar heating;
  • Ground-source heat pumps that use the earth or ground water as a source of heat in the winter;
  • Low-flow fixtures and appliances;
  • Recycled residential waste water, also known as gray water, from dishwashers, showers and laundry.

Environmentally friendly and energy-efficient homes are already popping up in the Netherlands, Japan, Germany and the United Kingdom and are expected to become the norm in Canada, the CMHC stated.

The Canadian government currently offers federal grants of $5,000 for residential and small-business property owners looking to improve the energy efficiency of their homes.

According to the federal government, homes that are more than 25 years old have the potential to save an average of 35 per cent of their energy use while homes that are more than 50 years old could save an average of 38 per cent.

The report also examined recent trends in housing expenditures and said housing-related spending increased by 6.1 per cent last year, contributing more than $275 billion to the Canadian economy.

Total spending on housing renovations, repair and maintenance reached $43.9 billion in 2006, an increase of nine per cent compared to 2005.

Canada's average outstanding mortgage amount reached $694 billion in 2006, up 10.7 per cent from the previous year. The CMHC credits the increase to high property values, which have spiked the average mortgage amount approved by lenders.

The report states the average home price, mostly driven by a robust seller's market in the western provinces, rose by 11.1 per cent to $277,000 representing the highest price since 1989.