residential sector
GROWING RENTAL POTENTIAL
An unambiguous trend has emerged in the temporal pattern of apartment starts in Metro Vancouver, with new apartment construction slowing in each quarter between Q4 2017 and Q3 2018. Most recently, there were 3,517 apartment starts throughout the region in Q4 2018, up 5% fromQ3’s recent low of 3,351. Starts in Q4 were, however, 39% below those in Q4 2017, and 5% below the past half-decade quarterly average.
If there is a positive takeaway from the dwindling-supply picture painted by these data it is that rental apartment starts—the most common entry point into the housing market for young people and into the country for new immigrants—have been relatively robust. Indeed, the 1,466 rental apartment starts in Q4 2018 were 12% higher than in the previous quarter, and 43% higher than the average quarter from the past five years. If this trend can be sustained, it's good news for a balanced market and a growing economy.
OWNED STARTS SLOW WHILE RENTAL STARTS GROW ›
7,000
60%
6,000
50%
42%
5,000
40%
4,000
30%
3,000
20%
2,000
10%
1,000
0%
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2016 2015 2014 2018
RENTAL
OWNED
RENTAL CO OP SHARE OF ALL STARTS
SOURCE: CANADA MORTGAGE & HOUSING CORPORATION DATA: APARTMENT STARTS BY INTENDED TENURE, METRO VANCOUVER
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