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
Debunking the 'anti-sunscreen' movement: Doctors say TikTok trend is dangerous
Dermatologists are sounding the alarm about misinformation from the anti-sunscreen movement, saying not wearing sunscreen can cause cancer and other problems.
Here's how new AI tech could change the iPhone
Generative AI, artificial intelligence that can provide thoughtful and thorough responses to questions and prompts, could potentially breathe new life into Apple’s iPhone lineup at a time when competitors are threatening to leave the company behind in the race to shape what could be a world-changing technology.
DEVELOPING Key witness lied on stand, Trump lawyer tells jurors during closing arguments in hush money trial
Donald Trump's landmark hush money trial turns on the testimony of a prosecution witness who told lies on the stand and cannot be trusted, a defence lawyer said Tuesday during closing arguments as he pressed jurors for an acquittal in the first criminal case against a former American president.
Ont. university says professor fired over 'unethical' sexual relationships with students
An associate professor at McMaster University has been fired after its board of governors found that he engaged in 'unethical, inappropriate and in some instances exploitative' sexual relationships with students.
Richard Dreyfuss' comments about women, LGBTQ2S+ people and diversity lead venue to apologize
The actor Richard Dreyfuss showed up in a dress at a 'Jaws'-themed event in Massachusetts, where the blockbuster 1975 movie he starred in was shot, and then proceeded to make demeaning remarks about women, LGBTQ2S+ people and diversity.
WATCH Airline pilot treated to stunning northern lights show during U.S.-Portugal flight
An airline pilot got quite a show on May 11 while flying from San Francisco to Lisbon when a solar storm caused stunning auroras.
MPs to vote on motion to oust House Speaker Greg Fergus over allegations of partisanship
Members of Parliament will be voting Tuesday on a Conservative-led motion to oust House of Commons Speaker Greg Fergus, amid renewed concern over his 'alleged lack of impartiality.'
Why young people keep getting caught in debt traps and how to break the cycle
Canadians are feeling the squeeze between incomes that haven't kept up with the cost of living, housing crises in markets across the country and rising interest rates brought in to control inflation. Experts share some tips for managing debt and spending.
Tornado touches down west of the Island of Montreal
Emergency services in the town of Rigaud, Que. are investigating after a tornado touched down shortly after 5:30 p.m. Monday.