Housing Minister Ravi Kahlon thinks Metro Vancouver will be able to go against the grain of Canada Mortgage and Housing CorporationB次元官网网址檚 new projections that forecast a decline in new housing starts in the year ahead.
CMHCB次元官网网址檚 projections are due to B次元官网网址渞estricted financingB次元官网网址� impacting multi-family building B次元官网网址� restrictions that the corporation says will bounce back in 2025 onward.
While CMHC recorded 33,244 new housing starts last year, forecasts for 2024 range from a low of 25,900 to a high of 31,900.
B次元官网网址淗igh land and construction costs, along with financing constraints, are making it hard for some multi-family projects to move forward,B次元官网网址� the corporationB次元官网网址檚 report reads. B次元官网网址淲e anticipate these multi-family projects to account for most of the decline in new home constructions in 2024.B次元官网网址�
On Thursday (April 4), Kahlon said the figures are based on interest rates.
B次元官网网址淲e have said that rising interest rates are putting real pressure on a lot of housing projects throughout Canada,B次元官网网址� he said. B次元官网网址淲e are confident though that we will surpass targets given that we are taking steps to unlock small-scale, multi-use units, unlock transit-oriented development and I do believe that B.C. will continue to lead the country in housing starts.B次元官网网址�
B.C. recorded 50,490 new housing starts in 2023, which is the highest in Canada per-capita. The province also added a record-number of new rental homes in 2023.
Kahlon argued that the projections do not reflect policy changes the NDP government has made.
B次元官网网址淲e believe that the changes we brought on will allow for more housingstarts to be happening in B.C.B次元官网网址�
CMHC is less confident about seeing an immediate effect and suggests that zoning policy changes may pave way for more higher density developments but also B次元官网网址済round-oriented multi-family developments.B次元官网网址�
Rents will remain high in Metro Vancouver, the corporation warned.
B次元官网网址淲e expect that turnovers will continue to be low, as existing renters have limited alternatives in the rental market,B次元官网网址� the forecast reads.
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Housing prices are also expected to pick up, ending a declining trend in benchmark pricing that began in 2022. Reasons include expectations around lower interest rates: Once they start to decline, buyers will see their budgets expand, leading to growing demand and rising prices.
That also means that with interest rates expected to ease starting in mid-2024 through 2025, multi-family projects will become more financially viable.
CMHCB次元官网网址檚 forecast is the latest and second major report this week analyzing housing in B.C.
A report released April 2 by RBC chief economist Robert Hogue stated an B次元官网网址渋mproving outlook for affordabilityB次元官网网址� in some areas of the province, while conditions remain challenging in Metro Vancouver and Victoria.
B次元官网网址淭he prospects for buying a home have long been challenging in the area,B次元官网网址� that report reads. B次元官网网址淭heyB次元官网网址檙e now at full-blown crisis levels. ItB次元官网网址檚 never been as expensive to own a home anywhere, anytime in Canada as it was in Vancouver in the fourth quarter.B次元官网网址�
RBC suggests that the share of a median income needed to cover ownership costs is 106.4 per cent. Victoria is somewhat more affordable with the share being 80.2 per cent.
Kahlon said the RBC report highlights what is already known: Rising interest rates, global inflation and decades of inaction by governments have put people in a B次元官网网址渞eally, really tough timeB次元官网网址� in B.C., he said.
B次元官网网址淭hatB次元官网网址檚 why we are taking steps to increase housingB次元官网网址n fact, we are national leaders,B次元官网网址� he added in pointing out that governments elsewhere are copying B.C.B次元官网网址檚 policies.
When asked when British Columbians can expect a change, Kahlon said addressing the housing crisis take time and real reforms.
B次元官网网址淚f we can flip a switch and solve the housing crisis and address all the challenges overnight, we certainly would.B次元官网网址�
