L E A D I N G H O U S I N G M A R K E T I N D I C ATO R F O R B R I T I S H C O L U M B I A

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1 September 216 Issue L E A D I N G H O U S I N G M A R K E T I N D I C ATO R F O R B R I T I S H C O L U M B I A Registered new homes data are a leading indicator of housing and economic 1 activity in British Columbia. The Monthly New Homes Registry Report provides information on registered new homes by building type, building size and location, and is intended for use by the residential construction industry, real estate community and researchers. Highlights In the first nine months of 216, 31,691 new homes were registered 2 in BC, up by 14.% from the same period in 215, driven by an increase in both multi-unit homes (+1.6%) 3 and single detached homes (+21.3%) 4. Registered new homes in September included 1,82 single detached and 3,811 multi-unit homes. This month, 24.2% of registered multi-unit homes were rental. Compared to September 215, the number of registered new homes increased by 19.4%. Between August and September in 216, there was a decrease in single detached homes (-24.%) but an increase in multi-unit homes (+17.6%). Using a trend analysis with moving averages 5, there were 4,178 new registered homes in September 216, trending at an increase of 6.5% from August 216 for all new homes, including an increase of 13.8% in multi-unit homes 3 and a decrease of 6.8% in single detached homes. Metro Vancouver accounted for 75.1% of all new homes registered in BC in September Burnaby, Surrey, and Vancouver were the three cities with the highest number of registered new homes this month. The majority of homes in Port Moody, New Westminster, Burnaby, Fort St. John, Squamish, Richmond, North Saanich, Abbortford, Kamloops, Surrey, Langley 6, Courtney, Vancouver, and Maple Ridge were in multi-unit buildings. 4 1 Bank of Canada, 216. New Housing Registrations as a Leading Indicator of the BC Economy. Details here. 2 As of August 216, calculations of registered new homes include homes in rental buildings. 3 As of August 216, calculations of registered new homes in multi-unit buildings include new homes in multi-unit buildings (two or more dwelling units) enrolled with home warranty insurance, and new homes in multi-unit rental buildings which are exempt from home warranty insurance. 4 Registered new single detached homes refers to new single detached homes enrolled with home warranty insurance or with Owner Builder Authorizations issued by the Registrar of Builder Licensing. 5 The trend analysis with moving average is based on a three-month moving average of the monthly new home registration data. Data are not seasonally adjusted. 6 Langley includes the City of Langley and the Township of Langley, while North Vancouver includes the City of North Vancouver and the District of North Vancouver. There were 16 proposed new multi-unit buildings 3 in the province in September 216. The majority of these buildings were duplexes (32.5%) and buildings of 5 to 5 dwelling units (3.6%). The largest building of 47 dwelling units was proposed to be built in Surrey. There were 923 homes in multi-unit rental buildings registered in September. A total of 4,42 rental units have been registered in 216, up 18.8% compared to 215. More than 1 rental units were proposed in Vancouver, New Westminster, Kelowna, Port Coquitlam, Surrey, Langley 6, Abbotsford, Penticton, Victoria, Kamloops, North Vancouver 6, Squamish, Chilliwack, Saanich, Nanaimo, Pemberton, Langford, Port Alberni, and Cranbrook. 5, 4, 3, 2, 1, Figure 1: Registered New Homes 2 by Building Type, Year-to-date 1

2 Figure 2: Registered Single Detached Homes, September 216 Figure 3: Registered New Homes in Multi-unit Buildings 7, September 216 Number in September 216 1,82 % change from August 216 (-) 24.% % change from September 215 (-) 1.5% Number in September 216 3,811 % change from August 216 (+) 17.6% % change from September 215 (+) 27.1% 4, year average 4, year average 3,5 3,5 3, 3, 2,5 2,5 2, 2, 1,5 1,5 1, 1, 5 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Figure 4: Registered Multi-unit Buildings 7 by Building Size 8, September 216 Total Number in September Figure 5: Top 1 Largest Registered Multi-unit Buildings 7 by Size and Location, September 216 Building Size 8 City 47 Surrey 369 Burnaby 288 Burnaby 258 Burnaby 233 Richmond Burnaby 132 Richmond 94 Langley 9 Duplex Triplex Quadplex 5-5 Units 51-1 Units >1 Units 87 Burnaby 65 Squamish 7 As of August 216, calculations of registered new homes in multi-unit buildings include new homes in multi-unit buildings (two or more dwelling units) enrolled with home warranty insurance, and new homes in multi-unit rental buildings which are exempt from home warranty insurance. 8 Building size is measured by number of dwelling units, which is equivalent to new homes. 9 Langley includes the City of Langley and the Township of Langley. 2

3 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Figure 6: Registered Owner-built Homes 1, Year-to-date Number of Owner Builder Authorizations Approved 2,38 2,11 Figure 7: Registered New Homes in Multi-unit Rental Buildings 11, Year-to-date 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Number of New Homes in Multi-unit Rental Buildings that Qualify for the Exemption 3,42 4,42 Figure 8: Registered New Homes 12 by Building Type and by Selected City 13, September 216 Homes in Multi-unit Buildings with Rental Exemptions Single Detached Homes Burnaby Surrey Vancouver Richmond New Westminster Abbotsford Langley Kamloops Courtenay Chilliwack , Number of Registered New Homes 1 Registered owner-built homes refers to Owner Builder Authorizations issued by the Registrar of Builder Licensing. Individuals building a single home for their own personal use and who directly manage the construction of the new home may obtain an Owner Builder Authorization and be exempt from licensing and home warranty insurance. 11 Registered new homes in multi-unit rental buildings refers to new homes in multi-unit buildings that qualify for exemption from home warranty insurance. These exempted homes must be constructed for rental purposes, including social housing, and have a restrictive covenant registered on title restricting the sale of any dwelling unit for a 1-year period. 12 As of August 216, calculations of registered new homes and registered new homes in multi-unit buildings include new homes in multi-unit rental buildings. 13 Selected cities are the 1 cities that had the highest numbers of registered new homes in the reference month. In this report, Langley includes the City of Langley and the Township of Langley. 3

4 Figure 9: Registered New Homes 14 by Regional District 15, September 216 Regional District Number of Single Detached Homes Regional % Share of Provincial Total Number of Homes in Multi-unit Buildings Regional % Share of Provincial Total Comox Valley % % Thompson-Nicola Fraser Valley % % 23.6% % Capital 8 7.4% 7 1.8% Metro Vancouver % 3, % 14 As of August 216, calculations of registered new homes and registered new homes in multi-unit buildings include new homes in multi-unit rental buildings. 15 The five regional districts with the highest numbers of registered new homes in the reference month. 4

5 7, Figure 1: Registered Single Detached Homes in Metro Vancouver, Year-to-date 6, 5, 4, 3, 2, 1, Vancouver Surrey Rest of Metro Vancouver Total - Metro Vancouver Rest of BC Figure 11: Registered Single Detached Homes by Selected City 16 in Metro Vancouver, Year-to-Date Vancouver Surrey Richmond Langley Maple Ridge Burnaby Coquitlam North Vancouver Delta West Vancouver 1,377 1, YTD YTD , 1,2 1,4 1,6 Number of Registered New Homes 16 Selected cities are the 1 cities that had the highest numbers of registered single detached homes in Metro Vancouver in

6 Data Tables Table 1: Registered New Homes, 22 to 216 Year-to-date Registered New Single Detached Homes 17 Registered New Homes in Multi-unit Buildings 18 Calendar Year Single Detached Homes Enrolled with Home Warranty Insurance Owner Builder Authorizations 19 Enrolled New Homes in Multiunit Buildings Rentals Exempted ,179 3,268 12,75 2, ,498 3,58 16,338 2, ,747 3,666 19,732 2, ,619 3,854 23,211 1, ,838 4,124 23,263 1, ,993 3,959 25,334 1, ,855 3,373 15, ,166 2,749 6,827 1, ,439 3,199 13,98 1, ,416 2,596 14,58 1, ,923 2,445 16,28 1, ,549 2,67 16,431 2, ,947 2,335 15,979 2, ,49 2,549 18,44 4, Jan Sep 6,85 2,38 15,55 3, Jan Sep 8,772 2,11 16,866 4,42 Month Table 2: Registered New Homes, 215 to 216 Year-to-date and 5-year Average, Monthly Registered New Single Detached Homes 17 Registered New Homes in Multi-unit Buildings year Average year Average 21 Jan ,793 1,524 1,348 Feb 1, ,235 2,378 1,573 Mar 1,252 1, ,276 2,639 1,869 Apr 1,144 1, ,515 1,122 1,588 May 1, ,25 1,684 2,147 1,374 Jun 1,368 1, ,765 2,365 1,522 Jul 1,389 1, ,587 1,149 1,44 Aug 1, ,242 2,584 1,846 Sep 1,82 1, ,811 2,999 1,946 Oct ,59 1,9 Nov ,417 Dec ,223 1, Registered new single detached homes refers to new single detached homes enrolled with home warranty insurance or with Owner Builder Authorizations issued by the Registrar of Builder Licensing. 18 As of August 216, calculations of registered new homes in multi-unit buildings include new homes in multi-unit buildings (two or more dwelling units) enrolled with home warranty insurance, and new homes in multi-unit rental buildings which are exempt from home warranty insurance. 19 Owner Builder Authorizations refers to Owner Builder Authorizations issued by the Registrar of Builder Licensing. Individuals building a single home for their own personal use and who directly manage the construction of the new home may obtain an Owner Builder Authorization and be exempt from licensing and home warranty insurance. 2 Rentals exempted refers to new homes in multi-unit rental buildings that qualify for exemption from home warranty insurance. These exempted homes must be constructed for rental purposes, including social housing, and have a restrictive covenant registered on title restricting the sale of any dwelling unit for a 1-year period. 21 In this report, the five year average is the average of the most recently completed five years. 6

7 Regional District Table 3: Registered New Homes 22 by Regional District, September 216 Registered New Single Detached Homes 23 Number of Homes Regional % Share of Provincial Total Registered New Homes in Multi-unit Buildings 24 Number of Regional % Share Homes of Provincial Total Number of Homes Total Regional % Share of Provincial Total Alberni-Clayoquot 6.6%.% 6.1% Bulkley-Nechako 2.2%.% 2.% Capital 8 7.4% 7 1.8% % Cariboo 7.6% 4.1% 11.2% Central Coast.%.%.% Central Kootenay 8.7%.% 8.2% Central Okanagan % 23.6% % Columbia-Shuswap % 8.2% 36.7% Comox Valley % % % Cowichan Valley %.% 29.6% East Kootenay % 1.3% 24.5% Fraser Valley % % % Fraser-Fort George %.% 13.3% Kitimat-Stikine 3.3%.% 3.1% Kootenay-Boundary 8.7%.% 8.2% Metro Vancouver % 3, % 3, % Mount Waddington.%.%.% Nanaimo % 4.1% 38.8% North Okanagan % 1.3% 33.7% Northern Rockies.%.%.% Okanagan-Similkameen % 8.2% 47 1.% Peace River 6.6% 14.4% 2.4% Powell River 3.3%.% 3.1% Skeena-Queen Charlotte 1.1%.% 1.% Squamish-Lillooet % % % Stikine.%.%.% Strathcona %.% 18.4% Sunshine Coast 2 1.8%.% 2.4% Thompson-Nicola % % % Total 1,82 1.% 3,811 1.% 4,893 1.% 22 As of August 216, calculations of registered new homes include new homes in multi-unit rental buildings. 23 Registered new single detached homes refers to new single detached homes enrolled with home warranty insurance or with Owner Builder Authorizations issued by the Registrar of Builder Licensing. 24 As of August 216, calculations of registered new homes in multi-unit buildings include new homes in multi-unit buildings (two or more dwelling units) enrolled with home warranty insurance, and new homes in multi-unit rental buildings which are exempt from home warranty insurance. 7

8 Background and Methodology BC Housing is responsible for the administration of the Homeowner Protection Act, with a mandate to help bring about improvements in the quality of residential construction and increase consumer protection for buyers of new homes in British Columbia (BC). Under the Act, all new homes in the province must be registered with BC Housing. The registration of new homes in the public registry must occur prior to the issuance of building permits and housing starts. The new homes registry data measures residential construction activities at the beginning of a project before construction commences. Therefore, information in the Monthly New Homes Registry Report is a leading indicator of housing activity in BC. In collaboration with BC Housing, the Bank of Canada conducted a study to assess whether or not new home registration data can be used as a leading indicator for economic activity in BC. Study findings reveal that quarterly increases in new registrations for single detached homes have statistically significant predictive content for growth in real Gross Domestic Product (GDP) over the next one to three quarters, providing stronger signals compared to housing starts and building permits over this forecast horizon. To view the report, go to the Staff Discussion Papers section on the Bank of Canada s website: New home registration data is collected from Licensed Residential Builders and owner builders through the New Home Registration forms and Owner Builder Authorization applications. Over time, some minor adjustments may be made to the new home registration data as registrations are withdrawn or cancelled from home warranty insurance. This report provides information on registered new homes by building type, building size, and building location. Figures for registered new homes include both multi-unit and single detached new homes enrolled with home warranty insurance and Owner Builder Authorizations. Calculations for homes in rental buildings have been presented separately. CSA-approved manufactured homes (mobile homes and factory-built homes), floating homes, non-stratified hotels, motels, dormitories and care facilities are excluded from the definition of new home. Geographical terms in this publication are based on Statistics Canada s 26 Census area. In February 29, the regional district of Comox-Strathcona was replaced by two successor regional districts, Comox Valley and Strathcona. Click to view Monthly New Home Registry Report 8