Population rise stokes superheated housing market

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.

When so many more people are residing in Canada, our public health care system sags under the increased weight placed upon it, and our housing affordability problem stubbornly shows no signs of abating as the rising population fuels demand.

Last week, for example, Central 1 Credit Union’s economic briefing for May showed that average house prices in B.C. rose by 5 1 per cent over the previous month, pushing the average price of a home to slightly more than $1 million (the average price in MetroVancouver is now

$1 28 million)

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.

Surely, the steady increase in our population is outweighing any effect on the housing market brought by the two factors of interest rates and inflation.

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

Provincewide, the population is expected to rise by 27 per cent, reaching about 6 5 million people by 2038

Not only will that population explosion likely keep sustained pressure on the hous- ing market, but it will also put enormous pressure on the health-care system, particularly because the number of people over the age of 64 is forecast to skyrocket

What’s driving our population growth?

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.

TheTrudeau government decided a few years back to greatly increase the annual level of immigration, ostensibly to nullify a growing worker shortage

Last year, across the country almost a half million people achieved permanent resident status, and the federal government hopes to keep that number rising through 2025 and beyond

DonWright, the former head of the

B C civil service, recently wrote in The Orca of the problems associated with a population explosion, noting that 95 per cent of new British Columbians are settling in MetroVancouver, southVancouver Island and the Okanagan, where affordable housing is already in short supply

The fact that more than one million more people are expected to come to B.C. over the next 15 years underscores the need for innovation and planning in many areas of public policy

And with the federal government playing such a key role in our phenomenal population growth, look for the provinces to demand more from it to meet these rising challenges, particularly when it comes to health care and housing

Keith Baldrey is chief political reporter for Global BC.