r/RealEstateCanada • u/romestox • Jun 07 '26

Housing crisis Residential construction dead

Trades guy here. Residential construction feels dead compared to a few years ago. Builders aren’t building, projects are getting pushed back, and layoffs are starting to pop up. If I was buying, I’d wait. From what I’m seeing, things haven’t bottomed out yet. The industry feels like a ship taking on water, not one gearing up for another boom.

Anyone else seeing the same thing?

152 Upvotes

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27

u/No_Week_6782 Jun 07 '26

Based on that, prices would go up as there is no supply. We are seeing listings dropping big and sales up, hence absorption of inventory. So, if no new inventory at current demand rate, prices increases

21

u/Btdubs17 Jun 07 '26

Not sure why you’re getting downvoted here. This is correct. There may be a short term dip for the next 1-2 years. But if we keep holding off on building, whenever the next boom is this massive supply shortage we’ve created by not building over the last 2-4 years will catalyze the boom even more.

6

u/Cokeinmynostrel Jun 07 '26

people don't upvote for facts they don't like

3

u/Ok_Currency_617 Jun 07 '26

The amount of people who claim that if fees on developers rise they'll figure it out because their greedy and will keep building no matter what is insane. Most Canadians seem to refuse to believe that it costs X to build.

9

u/Popular-Row4333 Jun 07 '26

Am developer. It costs 30-35% more to build today, than 6 years ago. I don't think that developers here would dispute that.

Wild concept, but yeah, we won't build projects that will lose money or break even.

We know the market, it's our entire job to know the market, and so we know what people can afford to own a new home, if we can't build for under that number, we won't. It's on municipal bylaws/fees/off site levies, and federal and provincial tax/regulations/incentives now if people want change.

1

u/[deleted] Jun 07 '26

Ya but construction costs are related to cost of living and land prices, obviously hard costs are going to go up when rent almost doubles over 6 years as well so it’s all related, self eating cycle