B.C. looks to tie housing funding to immigration as record influx of newcomers expected

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

The BCREA estimated the province will need to build 25 per cent more homes than it has been averaging and sustain this for the next five years in order to keep a check on rising prices.

The association said construction needs to be ramped up to a record 43,000 housing completions a year as demand for housing is fuelled by rapid population growth. Canada is aiming to accept half a million new permanent residents by 2025 to cope with an extremely tight labour market and the need for people with certain skills, experience and education.

This demand will be happening at the same time that the supply of housing is curbed not only by the weaker economic outlook, but also Ottawa’s restrictions for non-Canadian buyers, said the BCREA.