Keith Baldrey: Population rise stokes superheated housing market

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Accelerated immigration outweighs any drag from interest rates, inflation on prices, sales.

Canada’s national population punched through the 40 million level last week, and while that may help fuel economic growth, a rising population also brings some serious challenges with it.

So even rising interest rates and a significant increase in the cost of living are not bringing down housing prices, or sales either. Central 1’s report also showed a 5.8 per cent increase in sales last month. B.C. government statistics forecast that the Fraser Health region’s population alone will increase by 35 per cent between 2018 and 2038, adding almost 700,000 new residents over that time span.

Across B.C., the senior population is expected to increase by 71 per cent in that time period, but in Fraser Health the increase is forecast to be about 95 per cent.B.C.’s population grew by about 150,000 last year, and that is almost all international migration. We currently sit at about 5.4 million residents, up from 5.1 million in less than four years.

 

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