The Parliamentary Budget Officer published a report Tuesday which forecasts that there will be 198,800 homes completed in 2017 and will moderate to an average of 170,900 by 2019 to 2021.
Household formation is forecast by the PBO to be 188,500 in 2016 and slowing to 172,500 by 2021 while the vacancy rate will be around 5.2 per cent through 2018 before easing to 5 per cent – its long-term historic average - by 2021.
In terms of Canada’s economy, the report highlights that the residential real estate sector will contribute less to GDP and will become a negative influence by 2018.
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The independent watchdog which oversees Ottawa’s finances says that it expects Canada’s housing stock to balance with demand in the medium term.