Statistics Canada’s recent estimates record a population boost of 518,000 new residents in the last year and this boost means that there is a need for higher construction rates.
Canada’s population boost is mainly due to the increase in immigration levels by the federal government. It’s population growth is at its fastest in nearly 30 years and the highest of any G7 country.
However, home construction numbers are the lowest level recorded since 2016. At present, construction is producing 188,000 new homes per year. Rates of 200,000 new homes per year are thought to be the minimum to support the current level of growth. Levels may swing again as statistical data and predictions come to light.
Pushing for higher construction rates
With the current restrictions to construction, it is predicted that supply will not meet 2019 demand, according to Gary Bhaura, Toronto Real Estate Board (TREB) president. TREB, with many others in the industry, are pushing for lower restrictions in home development, which look into faster building permits and densification of low-rise neighbourhoods.
If you want to discuss the market, please reach out using the form below or give us a call to (604) 281.1050.