B.C. needs a housing construction boom as immigrations level soar: BCREA
British Columbia needs a housing construction boom to offset the record immigration its’ experiencing, according to the BC Real Estate Association.
In a report, BCREA said new home completions in the province need to rise 25 per cent about their historical averages for the next five years — to about 43,000 annually — to fully offset the deterioration in housing affordability.
The province is expecting about 217,500 new permanent residents between 2023 to 2025. That’s about 100,500 more than expected during that stretch based on historical average immigration levels, according to the BCREA.
“Lowering price growth so that income growth can catch up to prices is integral to improving housing affordability in BC,” said 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 B.C.”
To ease pressure on the market, there are steps the government can take to increase the housing supply, he said.
“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,” said Ogmundson.
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