Canada Needs to Focus On Real Estate Demand

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Canada Needs to Focus On Real Estate Demand
Canada Needs to Focus On Real Estate Demand
Canada hasn’t seen so many housing units delivered in such a long time. Robert Kavcic, a senior economist at BMO, wrote to clients this morning about July's new data on housing completions. Canada hasn’t built this many housing units in decades. Although there are still some supply-side concerns, they are not as serious as they were a few years back. He suggests that more attention be given to the demand-side aspect of the issue.
Canada hasn't built this much housing in a very long time
Canadian housing completions are much higher than normal these days. In the last 6 months, urban new housing completions have surpassed 180,000 units annually. This was the largest total since the mid-1970s, according to BMO.

This number is significantly increased when you include smaller, urban areas. Canada has averaged well over 200,000 units per year over this period. Kavcic stated that there is always supply.

They note that this is consistent with the long-term average, even after adjusting for population. There is no shortage of supply. However, supply is growing at the fastest rate in years. He said that the supply was at or near the top of the last two years.

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