Vancouver, the largest city in British Columbia, is one of the best places to live in Canada and, arguably, in the world. Unsurprisingly, the city of Vancouver has had exceptional growth over the years, though the economy and its growth has cooled down. The city’s housing market, in particular, is expected to boom.
Housing prices are up in Vancouver, rising an average of 0.6% in January 2018 compared to the previous month. Demand for housing remains high but inventory is low, which is expected to push up costs and prices even more.
According to the Canadian Mortgage and Housing Corporation (CMHC), housing starts in January 2018 increased by 94.8% versus the same month last year. In terms of housing type, the large increases come from the freehold single-detached concept (90.8%), row houses or semi-detached (55.4%), and apartments (34%).
Following the increase in housing starts, projects under construction have also increased by a total of 14.5% based on a comparison between January of 2018 and 2017. Most of the construction activities are for the creation of single-detached, row houses or semi-detached, apartments, and rental units.
More projects have been completed this January 2018 compared to the same month a year earlier. Completion rate is at 34.5%, mainly on single-detached units and row houses or semi-detached residences.
Given the high demand for and low availability of housing options, absorption rate increased in January 2018 by 18.9% compared to the same month last year. This growth is also expected to continue for the next couple of months.