Vancouver housing starts plunge 42% as construction costs spark concern

Vancouver’s housing starts have slumped 42% since last July, a decline the Urban Development Institute describes as the worst downturn in three decades. Mike Drummond, the institute’s CEO, attributed the slide to rising construction expenses and urged policymakers to cut taxes and fees. CMHC data show the city’s fall far exceeds the modest 10% dip in Toronto, while other markets also face fewer new projects.

Deputy chief economist Tania Bourassa-Ochoa said the slowdown is likely to persist, though the backlog of ongoing builds will still boost housing numbers. Drummond highlighted the pending 2027 end of Canada’s foreign homebuyer ban and suggested looking to Australia’s approach of allowing foreign purchases of new units only. Academic Andy Yan noted that many newly built condos exceed $1 million, raising questions about affordability and the cost of supporting infrastructure.