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
Teen was doing homework at family's Mississauga, Ont. restaurant when gunman opened fire: testimony
The 13-year-old sister of a young man killed in the attack on her family’s Mississauga restaurant in 2021 took the stand in a Brampton courthouse on Monday to describe the terrifying moments of coming under fire.
'Repetitive partisan conduct': Conservatives to force vote on ousting Speaker Greg Fergus
The federal Conservatives have advanced a motion that will force MPs to vote on whether to oust Greg Fergus as House of Commons Speaker, after MPs' deputy adjudicator ruled Monday that the Liberal member's allegedly errant partisan event invite required urgent attention.
Trial for B.C. man accused of killing, dismembering wife begins
The trial for a Langley man accused of killing his wife began Monday, with the prosecutor laying out a disturbing series of facts agreed upon by both Crown and defence.
Robertson's hat-trick drives Stars to Game 3 win over Oilers
Jason Robertson's hat-trick goal midway through the third period broke a deadlock and proved to be the eventual winner as the Dallas Stars beat the host Edmonton Oilers 5-3 in Game 3 of the Western Conference Final to take a 2-1 series lead.
What a CBSA strike could look like, according to an expert
Slowed or interrupted travel, the passing of goods and significantly restricted borders should be expected if Canadian border workers take upcoming strike action.
WATCH Alta. man rescues wild foal trapped on steep cliffside
A man's daring rescue of a newborn wild foal that was trapped after falling down a steep embankment was caught on video over the weekend.
Severe thunderstorms, tornado watch in some areas of Canada. Here's where
Depending on where you live, you can expect to get a mixed bag of weather this week, as local forecasts predict heavy rain, strong wind, severe thunderstorms and even snowfall across some areas of Canada.
B.C. senior prepares to move due to devastating effects of fraud
A Courtenay, B.C., senior is downsizing and packing to move as she comes to accept she can no longer afford to stay in her home, after falling victim to a scam that robbed her of her life savings worth more than $100,000.
Israel close to approving Gaza reunification program before Rafah invasion: Miller
Immigration Minister Marc Miller says Israel seemed to be on the verge of approving a program to get Palestinian relatives of Canadians out of the Gaza Strip before the country's invasion of the town of Rafah.