BRENDON OGMUNDSON
BRITISH COLUMBIA – Despite recent government attempts to address BC’s ongoing housing crisis, a new economic report from the BC Real Estate Association (BCREA) indicates that even the current, elevated pace of construction will be insufficient to improve affordability in the province.
According to the latest BCREA Market Intelligence report, moving the needle of affordability and meeting the province’s housing targets will require aggressive reforms. These include significant expansion of the construction workforce, improved efficiency throughout the home-creation process, and collaboration between the construction sector and multiple levels of government.
Summary of Findings:
- A status quo level of homebuilding will not be enough to meaningfully improve affordability over the next ten years.
- Improving affordability will likely require a large expansion of construction production capacity to hit provincial targets.
- Construction labour force expansion will be necessary but not sufficient. We also need a significant boost to productivity in the construction sector.
- Building a record amount of new housing is going to require an unprecedented level of financial investment on the part of government and developers.
“What this report hopefully shows is that, while ambitious, achieving bold housing supply targets is possible and, indeed, crucial to meaningfully improving housing affordability for British Columbians,” says BCREA Chief Economist Brendon Ogmundson. “However, it will require a coordinated effort from the government and the development sector, and probably a bit of luck.”
The report concludes that several other factors, including increased capital stock, regulatory streamlining, and financing incentives, will likely be needed to enable the construction expansion necessary to improve BC housing affordability.
Source: bcrea.bc.ca
