Record construction not enough to meet Canadian real estate demand: RBC
The number of homes under construction in Canada is at an all-time high but it still isn’t enough to satisfy the seemingly unending demand for real estate in the country.
Low mortgage rates, stockpiled savings, and changing needs as more people work from home sent buyers into the housing market headfirst during the pandemic. Permit approvers and builders got to work and building accelerated at a rapid pace to try and keep up.
“Their answer has been dramatic. In the past 12 months, builders across the country have poured the foundations (defining a housing start) for the highest number of housing units (260,500) than at any time since 1977,” said RBC economist Robert Hogue in a report.
“This represented a 26% or 53,600-unit increase relative to the 2015-2019 average pace (206,900 units).”
Hogue says there are nearly 320,000…