Last week, the British Columbia Real Estate Association stated that home builders are responding to a lack of available homes across the region by dramatically increasing multi-family housing starts.
Starts across Metro Vancouver surged 40% to 22,700 units in 2016, while the BCREA’s report said an estimated 19,700 multi-family homes were started so far this year, and a further 19,000 units are forecast in 2018.
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BCREA added that data on estimated completion times of the developments suggested that available suites in new apartment projects should rise from fewer than 4,000 units per quarter in 2016 to about 6,000 by late next year.
Most of the units are pre-sold, but the BCREA report said that renters who are buying homes will free up needed rental suites, while owners moving to new units will bolster a scarce supply of housing as their former properties go on sale.
The study argued that while a surge in multi-family completions isn’t the only solution for housing affordability in Metro Vancouver, a significant increase in the supply of homes can help keep a lid on climbing rents and house prices.
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A real estate association watching Metro Vancouver’s tight and costly housing market predicted conditions should begin to moderate by the third quarter of 2018.