B.C. needs unprecedented construction to offset record immigration: report
Home construction in British Columbia will need to rise to unprecedented levels to offset the impact of record immigration on the housing market, the B.C. Real Estate Association said in a new report on Tuesday.
The province must build 25 per cent more new homes than usual for the next five years to address deteriorating housing affordability.
The association said construction needs to be ramped up to a record 43,000 housing completions a year for the next five years to counteract rapid population growth.
“While this pace of completions is close to that achieved from 2020 and 2021, higher interest rates and weaker market conditions make that rate of completion less likely,” the association said.
Lowering price growth so incomes can catch up to prices is integral to improving housing affordability in B.C., said Brendon Ogmundson, chief economist with BCREA.
He said increasing supply would ease the upward pressure on housing prices from an immigration-driven demand shock and if sustained, help improve overall affordability.
B.C. is expected to welcome an estimated 217,500 new permanent residents from 2023 to 2025, nearly double the historical average immigration levels, the
In that time, two federal government policies - the ban on foreign homebuyers and record-high immigration targets - will be the key factors shaping housing demand in B.C., the association said.
Bill C-19, which implemented a two-year ban on home sales to non-Canadian buyers, will help offset some of the demand for housing, said BCREA, but not nearly enough compared with the expected demand from new immigrants.
The association said there is “weak evidence” that the ban will achieve its objective of lowering home prices given that a relatively small number of transactions involve purely foreign buyers.
“The potential impact of the increase in immigration is much more significant than the decline in sales due to the prohibition on foreign buyers,” the report said.
BCREA said an “unfortunate unintended consequence” of the ban on foreign homebuyers is that financing new home construction is more difficult without access to international capital markets.
This report by The Canadian Press was first published March 28, 2023.
CTVNews.ca Top Stories
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
WHO likely to issue wider alert on contaminated cough syrup
The World Health Organization is likely to issue a wider warning about contaminated Johnson and Johnson-made children's cough syrup found in Nigeria last week, it said in an email.
Canada, G7 urge 'all parties' to de-escalate in growing Mideast conflict
Canada called for 'all parties' to de-escalate rising tensions in the Mideast following an apparent Israeli drone attack against Iran overnight.
'It was all my savings': Ontario woman loses $15K to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Families to receive Canada Child Benefit payment on Friday
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.