Real eState

Canada’s Economy Has Never Been More Dependent On Real Estate

Published

4 years ago

January 13, 2021

Canada’s economy just became even more dependent on real estate. Statistics Canada (Stat Can) data shows residential investment soared to a record high in Q3 2020. The rate it’s grown over the past few months has far outpaced the economy. Consequently, residential investment is now the biggest percent of GDP it has ever been.

Residential Investment

Residential investment is real estate’s direct contribution to GDP. In Canada, it includes construction, renovation, and ownership transfer fees. It’s a big part of residential real estate’s contribution to GDP, but it’s missing some stuff. For instance, renovation is limited to major renovations. Superficial stuff like painting is excluded, despite being a big part of the economy. Adjacent industries are also in their own category, like insurance and finances.

Canadian Residential Investment Rises Over 18%

In current dollars, the amount dedicated to residential investment is soaring. The total reached $54.89 billion in Q3, up 39.34% from the previous quarter. This represents an increase of 18.03% compared to the same quarter last year. In dollar terms, this is the biggest number ever, with a huge rate of growth.

Canadian Residential Investment

The amount spent on residential stuctures in Canada. Source: Stat Can, Better Dwelling.

The rate of growth is actually the highest level in years. Following the big dip in Q2 2020, the rate made a big increase as most investment was just pushed into the next quarter. The rate marks a general trend of increases starting in the end of 2019, with the first full pandemic quarter being a notable exception. This is the largest rate of growth since 2010, which is a long time ago.

Canadian Residential Investment Reached 9.43% of GDP

Residential investment has recovered much faster than other segments of GDP. Residential investment represents 9.43% of GDP in Q3 2020, up from 7.71% during the same quarter last year. This is not only the highest rate seen in at least 60 years, but it’s also very high for any country. For context, the U.S. residential investment peaked at 6.7% in 2006 during the housing bubble. The current rate in the U.S. is just 4.3%, having also sharply accelerated faster than GDP in the third quarter. Just not nearly as much as Canada.

Residential Investment As A Percent of GDP

The amount of Canadian residential investment, expressed as a percent of GDP. Source: Stat Can, Better Dwelling.

Residential investment more than likely saw growth delayed in Q2. If that’s the case, growth would slow down in subsequent quarters as pent-up demand catches up. While we wait to see how that plays out, it’s important to remember it was already a high percentage of GDP before the pandemic.

Source: – Better Dwelling

Source link

Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

Source link

Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

Source link

Real eState

B.C. voters face atmospheric river with heavy rain, high winds on election day

Published

3 weeks ago

October 17, 2024

Anne Joseph

VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

Source link