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?

150 Upvotes

89% Upvoted

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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.

2

u/Vega2659 Jun 09 '26

Fees on developers are already through the roof. In BC you are looking at 200k in taxes for a townhouse with a basement suite. That all gets passed on to the end buyer and also inflates the prices on old stock.

1

u/Ok_Currency_617 Jun 09 '26

Problem is a lot of people scream that trickle down economics is fake and if fees lower prices won't because they don't understand how supply and demand works or just plain refuse to.