In this Market Intelligence, Bigger, Faster, More Affordable? Evaluating the Impact of Supply-Side Policies on the BC Housing Market, we use an economic model under development at BCREA to explore the linkages between the new home construction market and the resale market. The report finds that policies designed to streamline the development cycle are effective at mitigating demand shocks and corresponding price increase.

Summary Findings :

• New home construction links to the resale market by increasing the overall housing stock and enhancing choice in the market.

• Improving affordability means slowing the future rate of growth in home prices and that means a faster supply response to demand.

• Our simulations show that policies designed to streamline the development cycle, such as building more units and building faster, are effective at mitigating demand shocks.

• Improving the current development process may be challenging, but new technologies, better processes and more collaboration between levels of government could make the streamlined policies in our simulations a reality.

Click here to view the report.

New BC Real Estate Association Report Estimates Impacts of Increased Supply on BC Housing Market by Brendon Ogmundson | Chief Economist | BCREA