Condominium construction jumps 93 per cent in five months
Wyng Chow
Sun
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The Lower Mainland’s residential building boom during the first five months of the year generated a total of 22,481 person years of employment, up 57 per cent from 14,319 full-time equivalent jobs for the same period in 2003, construction industry figures show. “That’s an additional 8,162 jobs in just five months,” said Peter Simpson, chief executive officer of the 420-member Greater Vancouver Home Builders Association. “The largest job-creation gains were recorded in Burnaby, Langley, New Westminster, Surrey, Vancouver and White Rock.” Statistics released Tuesday by Canada Mortgage and Housing Corp. indicate housing starts in Greater Vancouver rose 58 per cent in May to 1,852 units, compared with 1,175 units the previous May. B.C.’s construction industry uses a multiplier of 2.7 equivalent full time jobs for one year for each new start. Multiple units — mostly condominiums — accounted for 1,354 starts last month, a 93-per-cent jump from 702 units in May 2003. “Greater Vancouver home builders continue to increase production to satisfy demand for new homes,” noted Cameron Muir, CMHC’s senior market analyst in Vancouver. “Strong employment growth, low mortgage rates and rising home prices are contributing to a high level of consumer confidence in the housing market. As a result, many areas of Greater Vancouver are experiencing a boom in residential construction, with multiple units leading the charge.” Through the first five months of this year, 8,029 residential units broke ground, up 57 per cent from 5,114 homes the previous year. Condo starts totalled 5,694 units, almost double the 2,923 units a year ago. On a percentage basis, the highest year-over-year increases in new housing construction from January through May were recorded in White Rock, up 333 per cent to 104 units from 24; Burnaby, up 269 per cent to 1,186 units from 321; Langley district, up 103 per cent to 590 units from 291; and Vancouver city, up 93 per cent to 1,969 units from 1,021. Across the province, urban housing starts climbed 61 per cent in May to 2,981 units, up from 1,849 units in May 2003. For the first five months, urban B.C. starts improved by 54 per cent to 12,723 units, compared to 8,252 units the previous year. The new construction boom figures follow on the heels of a report by Statistics Canada on Monday indicating Greater Vancouver municipalities issued more than $1.5 billion worth of building permits January through April, a 34 per-cent increase over the same period in 2003. In May, condo sales continued driving the region’s sizzling property market as 1,767 units sold at a record average price of $256,800. Overall, 3,918 detached houses, townhomes and condos changed hands last month, a year-over-year rise of 19.5 per cent from 3,279 residences the previous May. In April, a total of 4,106 homes sold in Greater Vancouver on the Multiple Listing Service, up 33 per cent from 3,095 transactions the previous April. All-time record prices were set in April 2004 for detached houses, hitting an average of $532,500, up 21.4 per cent over $438,600 the previous year, and townhomes, reaching an average of $306,800, a 20-per-cent appreciation over $255,100. Across B.C. in April, a total of 10,320 homes worth a total of $3.01 billion changed hands, a 50 per-cent increase in dollar volume over April 2003. ECONOMIC EXPLOSION An additional 8,162 person years of employment were created by the Lower Mainland homebuilding industry during the first five months of 2004 compared with the same period last year. The sector now employs 22,481 people. Job Growth Vancouver: additional 2,654 jobs Burnaby: 2,422 Langley area: 983 New Westminster: 490 Surrey: 1,336 White Rock: 225 Source: Peter Simpson, Great Vancouver Homebuilders Association RESIDENTIAL CONSTRUCTION STARTS: WHITE ROCK 104 starts up 333% BURNABY 1,186 starts Up 269% LANGLEY 590 starts up 103% VANCOUVER 1,969 starts up 93% Ran with fact boxes “Residential Construction Starts” and “Economic Explosion”, which have been appended to the end of the story. © The Vancouver Sun 2004
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