Cost of building new homes in Metro Vancouver rises 2 percent

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      The cost of building new homes in Metro Vancouver increased two percent in the second quarter of 2020.

      The year over year bump in the price of residential construction in the region closely mirrors the national increase of 2.1 percent.

      Statistics Canada reported the year over year increase across the country as part of its release Wednesday (July 29) of building construction prices.

      The federal agency measures building construction price indexes on a quarterly basis in 11 metropolitan areas, including Greater Vancouver.

      Statistics Canada reported that the 2.1 percent increase year over year in the second quarter follows a 2.2 percent increase in the first quarter.

      “Labour and materials demand increased following the shutdown period,” the agency noted.

      The agency also noted that non-residential building construction costs rose at a slower pace at 1.5 percent year over year following a 1.9 percent rise in the first quarter of 2020.

      In Metro Vancouver, the cost of constructing non-residential buildings rose 0.7 percent year over year in the second quarter of this year.

      Statistics Canada reported that construction activity resumed in every jurisdiction nationally by May 19.

      Statistics Canada added that uncertainty in the market, “coupled with supply chain disruptions and the ongoing adjustment to the new normal way of working may continue to impact building construction prices in subsequent quarters”.