B.C.'s new housing starts are expected to continue dropping over the next two years as economic growth begins to slow.
According to the Canadian Mortgage and Housing Corp., B.C.'s new housing starts are expected to be around 33,250 in 2008 and 31,700 in 2009. Those totals are lower than the 39,195 new homes built in B.C. last year.
The number of new single-detached homes is also projected to drop below the average 12,000 units built per year, while the number of multiple-family starts is expected to decline slightly.
That drop, however, is not expected to dampen B.C. real estate prices. Driven by high land, labour and material costs, average housing prices are projected to rise 6% in 2008 and 5% in 2009.
Average rental rates in B.C. are expected to rise as vacancy rates fall in 2008. The vacancy rate dropped to 1% in October 2007 compared with 1.2% in the same month a year ago.
According to the CHMC, the average monthly rent for a two-bedroom apartment was $922 in B.C., compared with the national average of $722.