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
'I just can't believe that it took so long': Body found in wreckage 3 months after deadly fire
A man accused of arson in a January Old Strathcona apartment fire is expected to be charged with manslaughter after a body was discovered in the burned building late last month.
No proof man lied to brother about number of kittens born in litter, B.C. tribunal rules
A man was denied a $5,000 payout from his brother after a B.C. tribunal dismissed his claim disputing how many kittens were born in a litter.
Quebec police hand out hundreds of tickets to Hells Angels and other bikers before 'first run' meeting
Quebec provincial police handed out hundreds of fines to Hells Angels members and other supporting motorcycle clubs who met for their 'first run' in a small town near Sherbrooke, Que.
Explosion at train station leads to discovery of stolen car on Montreal's South Shore: police
Police are investigating after a BMW exploded in the St-Lambert Exo train station parking lot on Montreal's South Shore.
A Chinese driver is praised for helping reduce casualties in a highway collapse that killed 48
A Chinese truck driver was praised in local media Saturday for parking his vehicle across a highway and preventing more cars from tumbling down a slope after a section of the road in the country's mountainous south collapsed and killed at least 48 people.
Snakes almost on a plane: U.S. TSA discovers a bag with small snakes in passenger's pants
According to an X post by the Transportation Security Administration, officers at the Miami International Airport found the small bag of snakes hidden in a passenger's trousers on April 26 at a checkpoint.
Russia puts Ukrainian President Zelenskyy on its wanted list
Russia has put Ukrainian President Volodymyr Zelenskyy on its wanted list, Russian state media reported Saturday, citing the interior ministry’s database.
A candidate for Germany's key party was beaten up while campaigning for European elections
A candidate for Chancellor Olaf Scholz's center-left party in next month's election for the European Parliament was beaten up and seriously injured while campaigning in an eastern city, the party said Saturday.
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.