Vancouver to continue to lead Canadian economic growth for the next year
City is on track to boast the fastest-growing metro area economy for the second straight year, according to the Conference Board of Canada
By Emma Crawford Hampel
Vancouver will lead the country in terms of economic growth in both 2016 and 2017, according to a Conference Board of Canada report released November 14.
Overall this year, the city will see growth of 4 per cent, driven in large part by the construction sector, followed by an increase of 2.8 per cent next year.
“Vancouver is on track to boast the fastest-growing metro area economy for the second straight year in 2016, as the region’s housing market remains one of the metro area’s key engines of growth,” said Alan Arcand, Conference Board associate director for the Centre of Municipal Studies.
“While Vancouver’s economy is forecast to slow next year, partly due to federal and provincial government measures directed at cooling the overheated housing market, the pace of growth still will be strong enough to maintain the metro area’s first place ranking.”
Construction in Vancouver was aided by record housing starts this year; a total of 28,400 units will have been started in 2016, with most of this strength coming from multiple-unit starts as developers turn to higher-density and mixed-use complexes. As well, non-residential projects were strong this year, with one example being the University of British Columbia’s plan to build additional housing for 3,000 students.
Single-family home construction is expected to have grown 11.9 per cent by the end of the year. This comes in spite of home prices increasing beyond the means of many residents.