Wednesday, September 21, 2022

At a glance (1 minute read):

  • New reports from CMHC and Wesgroup estimates the number of new homes needed in BC and Metro Vancouver, identifies potential challenges. 

 

To make housing more affordable, British Columbia will have to build 570,000 new units by 2030 according to a report from Canada Mortgage and Housing (CMHC). 

The report finds that in 2021, a household with an average income would have to devote close to 60 per cent of their household income to housing.  

In contrast, in 2004, this same household would have devoted 45 per cent of their household income to housing.

To achieve the 2030 target, BC will have to overcome major hurdles, including:

  • significant delays between when a project is proposed and when it starts due to long approval processes;
  • skill shortages and supply-chain challenges which push up costs and lengthen the time it takes to build, in the short term; and
  • increase in supply putting pressure on the cost of construction.
"Canada’s approach to housing supply needs to be rethought. It needs to be done differently. There must be a drastic transformation of the housing sector, including governments, and priority given to increasing the supply of housing to meet demand."
Aled ab Iorwerth, CMHC Deputy Chief Economist

Wesgroup analysis

While BC will need 570,000 new homes, Metro Vancouver will require 523,530 units according to a Wesgroup analysis. 

“It’s going to be an insurmountable challenge for the market to address,” said Brad Jones, Wesgroup SVP, Development.

The current annual completion rate of affordable homes is 23,766 units according to Jones. It would take 26 years (or by 2048) to reach the 523,570 unit target, not CMHC’s target of 2030.