Diverging views emerge on Vancouver home construction outlook
A Vancouver real estate services firm is pushing back against the widely held view that not enough homes are being built in Metro Vancouver.
In a report it releases semi-annually, Rennie highlights that construction began on 33,000 homes locally last year – which was a record for the region.
Still, the firm acknowledges not all municipalities in Metro Vancouver are building enough, given record immigration levels.
“The onus is then on cities, towns, villages, communities, to accommodate that growth, with infrastructure, transportation, hospitals and housing,” said Rennie’s head economist, Ryan Berlin. “And the reality is – I don’t think that municipalities – they’ve kind of had a myopic view, and sort of like, we’re going to go it alone, we’re going to do things our way, and now I think that mindset is changing a little bit.”
But not everybody feels rosy about the home construction outlook.
Earlier this month, Canada Mortgage and Housing Corporation forecast a slowdown in building, pointing to high costs and financing constraints.
“The other thing I would say is there is significant risk of reduced construction in 2024 and going forward,” said economist Tom Davidoff with the University of British Columbia’s Sauder School of Business. “Interest rates have not come down. My understanding is very challenged economically to make rental projects work and I would imagine presale activity is pretty slow as well.”
While many economists expect interest rates to drop, uncertainty could leave some homebuilders and potential buyers waiting on the sidelines.
“It’s simple math,” said RE/MAX Canada president Christopher Alexander. “When developers don’t have enough people to buy their projects, they don’t build them. When rates started to rise, people stopped buying, and the more they rose, the less purchasers on top of that. So it’s been a compound effect.”
The Rennie report also takes a look at the drop off in first-time buyers in recent years.
“The proportion of first-time homebuyers in all home sales in British Columbia, in Metro Vancouver, has fallen by about two-thirds today versus where that activity was before the pandemic,” said Berlin.
As for improving the situation for those trying to get into the market, some in the real estate space want the feds to take action in this week’s budget.
“Incentivize as much development of both affordable housing, purpose-built rentals as we can, and find a way to speed up development time so that we can bring more product to the marketplace,” Alexander said, when asked about his federal budget hopes.
In terms of specific incentives, Alexander is calling for tax breaks or credits, saying certain projects are not profitable in the current climate.
CTVNews.ca Top Stories
NDP wants Liberals to scrap proposed election date change that could secure pensions for many MPs
The federal New Democrats want to amend the Liberal government's electoral reform legislation to scrap the proposal to push back the vote by a week and consequently secure pensions for dozens of MPs, CTV News has learned.
Drive one of these vehicles? You may pay 37 per cent more than average insurance costs due to thefts
As the number of auto theft incidents rises in Canada, so have insurance premiums for drivers, even the ones whose vehicles aren't stolen.
Doug Ford suggests immigrants behind Jewish school shooting
Ontario Premier Doug Ford suggested immigrants are to blame for the shooting of an empty Jewish school in Toronto over the weekend, despite police saying they have little information on the suspects.
Melanie Joly 'forward-leaning' in debate on Ukraine using NATO arms inside Russia
Foreign Affairs Minister Melanie Joly is suggesting Canada would support a policy of allowing Ukraine to use NATO-provided arms inside Russia.
Fast-paced, highflying SailGP blows into Halifax for weekend competition
Ten countries, including Canada, each with teams of six sailors, are battling head-to-head on Halifax Harbour this weekend for the Canadian debut of SailGP (Grand Prix).
Donald Trump can sue niece over NY Times article, court rules
A New York state appeals court said Donald Trump can sue his niece Mary Trump for giving the New York Times information for its Pulitzer Prize-winning 2018 probe into his finances and his alleged effort to avoid taxes.
Shania Twain shares how she forgave her ex-husband's cheating: 'It's his mistake'
Shania Twain recently addressed the infidelity that rocked her marriage to Robert 'Mutt' Lange, whom she divorced in 2010 after he had an affair with her friend, Marie-Anne Thiébaud.
A pair enjoyed pricey meals and bolted when it was time to pay. Their dine and dash ended in jail
A Welsh couple who dined out on pricey meals and bolted when the bill came is now paying the price, behind bars.
Supreme Court won't hear appeal in Montreal brainwashing experiments case
The Supreme Court of Canada will not review a Quebec ruling that bars people from suing the U.S. government in Canada over its role in notorious brainwashing experiments at a Montreal psychiatric hospital.