Issue 16-06: Price of New Housing

January 14, 2016

The cost of new housing in B.C.'s largest metropolitan area continued to rise in November 2015. In Vancouver, new housing prices climbed 2.3% over the same month of 2014, while homebuilders in the Victoria area received slightly less (-0.5%) for their projects. New housing prices in Vancouver have been climbing since April, ending three years of steady declines. During most of this period, building costs have been the main source of inflationary pressure, as land prices have remained unchanged. Indeed, in November, land costs were flat (+0.0%), while the price of new housing increased 3.9%. In Victoria, the cost of land was also unchanged (+0.0%) over November of 2014, but building prices continued to decline (-0.9%).

Nationally, new housing prices were 1.6% higher in November than in the same month of 2014, backed by sustained increases in Ontario and the Atlantic provinces. Toronto (+4.1%) had the largest increase, followed by Hamilton (+3.3%).

Data Source: Statistics Canada