Unprecedented Pace of Construction Needed to Offset the Impact of Record Immigration to BC

To fully offset a deterioration in housing affordability, new home completions in BC need to increase 25 per cent above their historical average level for the next five years to a record level of about 43,000 completions per year, a new report has revealed.

According to the latest Market Intelligence report from the BC Real Estate Association (BCREA), two significant federal government policies– the Foreign Buyers Ban and record-high immigration targets– will shape housing demand in BC over the next three years.

Impact of Federal Policies

The Foreign Buyers Ban and high immigration targets set by the federal government will significantly influence housing demand in BC over the next three years.

Key Findings

• The Foreign Buyers Ban may lead to a drop of 2,400 home sales in BC over two years.
• BC expects 217,500 new permanent residents from 2023 to 2025, increasing housing demand by 20,500 units.
• Immigration’s impact on demand is five times greater than the Foreign Buyers Ban, exerting upward pressure on home prices.

Expert Opinion

Brendon Ogmundson, BCREA Chief Economist, stresses the need to align price growth with income to improve housing affordability. Increasing housing supply is vital to offset the demand surge from immigration.

Supporting Immigration and Addressing Housing Pressure

While immigration benefits the economy, it also strains housing demand. Policymakers must balance immigration support with measures to boost housing supply.

Government Action

Governments can ease housing market pressure by allowing more housing construction through zoning changes, increasing funding for affordable housing, and incentivizing developers to build more units.

Access the Report

For more details, read the full report here.