RENNIE OUTLOOK 2022
HOUSING STARTS
New housing construction picked up in 2021 after an understandably slow 2020 due to the initial onset of the pandemic and the social-distancing restrictions and supply-chain challenges that followed. Specifically, the number of housing starts in Metro Vancouver jumped by 16% between 2020 and 2021, surpassing 26,000 last year. This total was also 16% higher than the previous-decade annual average. Almost all of this increasewas inapartment construction,withthesehigher-densityhousingstarts surgingby21%over the past year to 19,500—the second-highest count ever in this region. A 30-year high in the number of purpose-built rental starts in 2021 (of 6,683) also contributed to the surge in new housing construction. Data on issued building permits over the past 2 years—averaging 22,700 homes in 2020/21 versus 25,150 in 2018/19— points to a marginal slowdown in starts in 2022.
OUR 2022 OUTLOOK We expect Metro Vancouver to achieve 25,100 gross housing starts in 2022, a 3% retreat from 2021 but still 12% above the previous-decade average. Attaining this level will be important, too, as annual net additional housing demand over the next 3 years is projected to average just over 25,000 units.
STARTS
HOUSING COMPLETIONS
Despite challenging pandemic conditions, there were—remarkably—more housing completions inMetro Vancouver in 2021 than in any previous year, with the 25,200 completed homes up 5% from 2020 and 30% versus the previous-decade annual average.
OUR 2022 OUTLOOK Despite lingering supply-chain concerns, the rebound in housing starts in Metro Vancouver in 2020 and 2021 will support a historically-elevated number of housing completions in 2021, at 24,200–a level consistent with the past 2 years.
COMPLETIONS
Copyright © 2022 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of February 3, 2022. All data from Real Estate Board of Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of 4
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