Canadian housing affordability worsens as prices of brand new homes climb 11 percent

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      Canadians are getting hammered.

      It’s not only prices of food and other consumer items and existing homes for resale that are on the rise.

      Brand new houses are getting more expensive as well.

      Statistics Canada reports that prices of newly constructed residences rose 11 percent year-over-year in March 2022 on a national level.

      Annual increases were observed in 27 census metropolitan areas or CMAs that correspond to their respective regional districts.

      Kitchener–Cambridge–Waterloo reported the biggest increase of 24.4 percent in March 2022 compared to the same month last year.

      Winnipeg followed second with 24.3 percent, and Calgary placed third with a year-over-year increase of 23 percent.

      Increases in the price of new homes in B.C. were more moderate.

      Statistics Canada noted an increase of 8.5 percent in the Vancouver CMA; 12.9 percent in Victoria; and 10.2 percent in Kelowna.

      In a report Wednesday (April 20), the federal agency stated that home builders cite “rising construction costs as the main reason for price increases”.

      “Softwood lumber prices were still rising (+8.3%) on a monthly basis in February,” Statistics Canada reported.

      “At the same time,” the agency continued, “prices for energy and petroleum products rose by 10.0% in January and 8.5% in February, as reflected in higher transportation costs and in higher operational costs for heavy machinery.”

      In a separate report on April 20, Statistics Canada stated that inflation in March 2022 jumped 6.7 percent.

      It’s the biggest annual increase since January 1991.

      Prices of food and other consumer items are increasing amid issues related to supply.

      Meanwhile, the Canadian Real Estate Association reported on April 19 that the price index for existing homes in the resale market increased in March 2022 by 27.1 percent on a yearly basis.