The new home construction is being seen primarily in the multi-family home arena, meaning condominiums and townhouses. Of the 8,472 total starts in housing construction in the Metro Vancouver area at the end of June, 8,813 of these were multi-family dwellings.
This represents a big increase say experts over the same time frame in 2010. According to real estate experts, this likely reflects an increased confidence among developers and investors in the economic recovery.
An improved economy, the continued low mortgage rates, job creation as well as strong overseas investment and immigration have created a renewed construction boom. The month of June, though down slightly from the month before, nevertheless still showed a 23 percent increase from the previous year’s numbers.
Condo and townhouse construction accounted for the majority of the new home construction with a fifty-one percent increase from last year. Single family home starts did on the other hand decline slightly from last year at the same time by thirty percent.
According to Vancouver realtors, this boom in condos and multifamily properties suggests a high level of confidence. Starting larger projects like these is reflective of a sense of the economic recovery being real and lasting.
Most of the increases are occurring in Richmond and Surrey. The whole region is however on pace for the creation of 15,700 new homes by the end of the year.
Across the country, the rate of new housing was up 1.7 percent. Since March, housing starts have been above what was predicted, however Vancouver realtors expect it to level out over the course of the year.