Condos Accelerating Growth in BC Home Building Investment

Multi-family building spend in the province catching up to detached home construction investment, reports statistics agency

Multifamily home construction

Investment in BC home building continued to climb – and increase its rate of growth – rising nearly 19 per cent year over year in July to $731 million, according to Statistics Canada data published September 22.

As has been the recent trend, apartment-condo construction led the investment growth in BC, rising 32.3 per cent compared with July 2014 to a total of $306 million – almost catching up with single-family home investment. 

The province’s detached home construction spend also increased, although at a slower growth rate, with the $331 million of investment an 11.9 per cent rise over the same month last year.

Townhome and row home construction investment in BC continued to rise steadily, increasing 14.4 per cent year over year to $64 million in July.

Bucking the recent trend, the only properties to see a reduction in construction investment in July were duplexes, spending on which fell 6.3 per cent year over year to $29 million.

The province’s total $731 million new home construction spend was again the third highest total in the country, after Ontario and Alberta. BC’s home investment growth rate was also Canada’s third highest, after spending surges in July in the Northwest Territories and Nova Scotia (up 65.9 and 27.8 per cent year over year respectively).

As with previous months, increases in new home spending nationwide were much more muted than those seen in BC. Investment in new home construction across Canada totalled $4.2 billion in July, up a meagre 0.5 per cent from the same month a year earlier.

As with BC, Statistics Canada reported that the increase came mostly from higher investment in apartment and condominium building construction, up 17.5 per cent to $1.4 billion, as well as higher spending on row house construction, up 6.3 per cent to $395 million.

Single-family home and duplex construction across Canada again both saw year-over-year declines in construction investment, falling 7.4 and 15.8 per cent respectively. However, detached homes saw the biggest total investment in July at $2.1 billion.

To see Statistics Canada’s interactive chart, click here

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