Bridging the Supply Gap

The residential construction sector in British Columbia is facing some of its toughest challenges in recent years. In July, the province shed 16,000 construction jobs, part of 22,000 lost nationally. Let that sink in for a moment. That’s not just labour market turbulence, it’s a warning sign, a red flag for housing supply. At a time when BC’s unemployment rate has risen to 5.9%, the loss of skilled workers risks undermining the home building industry’s ability to deliver the homes that communities urgently need.

At the same time, builders are being squeezed by rising costs. Development Cost Charges (DCCs) and layered government fees now add hundreds of thousands of dollars to the price of a single unit. In some Metro Vancouver projects, the total burden exceeds $250,000 per home. Combined with high interest rates, elevated construction costs, and growing regulatory complexity, these pressures are forcing projects to stall, delay, or, in some cases, be cancelled entirely.

Nonetheless, demand for housing has not disappeared; it has simply become out of reach for many buyers. Nationally, seven in ten recent homebuyers say they could not have purchased without relying on family or outside help. In BC, residential unit sales remain 16% below the ten-year July average. Even as prices soften slightly and interest rates stabilize, affordability remains the central barrier.

On the supply side, intentions to build are slowing. The value of building permits issued in BC fell nearly 25% in June. Labour shortages continue to drive up timelines and costs. Without meaningful action to reduce the cost of delivery, the supply gap will only widen.

Despite these headwinds, there are positive signs. According to BC Housing, the first seven months of 2025 saw 32,507 new homes registered in the province, up 18.5% from the same period in 2024. This includes 28,876 multi-unit homes (a 20.4% increase) and 3,631 single detached homes (a 5.3% increase). July alone saw 3,887 new home registrations, a modest 1.8% gain year over year.

The Canadian Home Builders’ Association of BC (CHBA BC) continues to advocate for solutions at all levels, locally through our network of eight local associations, including CHBA Fraser Valley, with municipal governments, provincially through the BC government, and federally from CHBA National in Ottawa.

Our message is clear: governments must address the cost of delivering homes to buyers. Lower development fees, a pause on new regulations, and support for workforce retention are essential steps so builders can get back to building the homes British Columbians need.