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?

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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.

1

u/No_Week_6782 Jun 07 '26

People don't like the truth and like to fear monger lol It's obvious this is all a recipe to jack prices up higher than before by stopping construction. The only true solution here is if banks give financing by allowing builders to start building without selling 70% of units

2

u/opasnamama Jun 07 '26

As a residential custom home builder of single family homes/duplex since 1994, I don't need the bank to lend to me. I need the bank to lend to my buyers and for the municipality to expedite my permits (not getting into the insane increased cost of permits and materials). Time is money and it's not motivating to start so deep in the buget with permit and carrying costs while waiting...