Construction of homes in Metro Vancouver set a new record last year, according to B.C. real estate developer Rennie.
The spring 2024 edition of rennie landscape, a semi-annual compilation analyzing housing markets in Metro Vancouver, Kelowna and Victoria, shows more than 33,000 homes, a 28 per cent increase from 2022, were started in 2023.
“Though we still need many more homes for the people that are coming to our region — as well as, don’t forget, the ones that are already here — it’s far from insignificant that we began construction on a record number of homes this past year,” said Rennie head economist and vice-president of intelligence Ryan Berlin.
“Having said that, this record-setting housing starts activity was not enjoyed by all parts of Metro Vancouver evenly, with more than one-third of municipalities recording below-average starts last year. There’s an opportunity to do more.”
Municipalities in the Lower Mainland with potential for an increase in housing starts due to a below-average level of construction include Pitt Meadows, North Vancouver, Delta, New Westminster, White Rock, West Vancouver and Coquitlam.
Rennie’s intelligence division also stated:
- The national unemployment rate is rising due to population growth outpacing job growth.
- Retail sales and GDP are both rising, but not when adjusted for population growth.
- Interest rate cuts are on the horizon now that inflation is back inside the Bank of Canada’s target range.
- Borrowers are spending more income than ever before to service mortgage debt, even as they take on less new debt overall.
- C.’s population is expected to grow by two million over the next 20 years as increasing international migration has led to revised population projections.
- Rental rates are rising in B.C. as the purpose-built rental market remains undersupplied, with both vacancy rates and turnover rates historically low.
