Unprecedented Pace of Construction Needed to Offset the Impact of Record Immigration to BC - Fifth Avenue REM mediaiqdigital tracking pixel
Market Intelligence, Real Estate News | April 12, 2023

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.

Summary Findings:

“Lowering price growth so that income growth can catch up to prices is integral to improving housing affordability in BC,” says Brendon Ogmundson, BCREA Chief Economist. “In our simulations, an appropriate supply response can offset the negative impact on affordability from an immigration-driven demand shock and if sustained, can achieve a permanent improvement in affordability in BC.”

Immigration plays a vital role in the economy by supporting economic growth, creating job opportunities, and bringing diversity to communities. However, as detailed in this report, immigration also adds significantly to housing demand. As the population continues to grow and global migration patterns persist, it is essential to create policies and programs that support and welcome immigrants while addressing the consequent pressures on an already stressed housing market.

“To ease the pressure on the housing market that arises from sudden changes in housing demand, governments can take steps to increase housing supply,” Ogmundson adds, “This can include zoning changes to allow for more housing construction, increasing funding for affordable housing programs, and providing incentives for developers to build more housing units.”

Click here for the news release PDF.

Share this post

Related posts

View all news