Unprecedented construction needed in B.C. to offset record immigration: Report

Home construction in British Columbia will need to rise to unprecedented levels to offset the impact of record immigration on the housing market, the B.C. Real Estate Association said in a new report on Tuesday.

The province must build 25 per cent more new homes than usual for the next five years to address deteriorating housing affordability.

The association said construction needs to be ramped up to a record 43,000 housing completions a year for the next five years to counteract rapid population growth.

“While this pace of completions is close to that achieved from 2020 and 2021, higher interest rates and weaker market conditions make that rate of completion less likely,” the association said.

Lowering price growth so incomes can catch up to prices is integral to improving housing affordability in B.C., said Brendon Ogmundson, chief economist with BCREA.