Surrey Housing Starts Decline Spark Growing Economic Concerns
Surrey Housing Starts Drop — A Warning Sign for the Market
A recent Surrey Now-Leader report highlights a worrying trend: housing starts across BC, including Surrey, have fallen sharply. In June 2024, only about 1,500 multi-unit dwellings were initiated—well below the peak of nearly 7,000 in April and below the 12-month average of around 3,000 (surreynowleader.com).
Why This Matters
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Supply crunch looming: Fewer new apartments, townhomes, and condos may intensify the ongoing housing shortage in Surrey, worsening affordability and increasing demand pressure among existing listings.
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Economic ripple effects: Housing serves as a driver for local construction jobs, materials sourcing, and related services. Sharp declines can slow job growth and regional economic momentum.
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Shifting policy levers: With multi-unit starts down nearly 20% year-over-year in BC, authorities may need to intervene—through incentives, zoning updates, or fast-track approvals—to support needed housing supply .
What It Means for Surrey
| Stakeholder | Implications |
|---|---|
| Homebuyers & Renters | Expect fewer new entry-level and mid-rise options in coming years—older listings might gain more attention. |
| Sellers | The resale market may remain competitive, with fewer new builds to draw potential buyers away. |
| Developers & Builders | May face higher land and labor costs, and pressure to pivot to other regions or project types. |
| City Planners & Officials | Could consider policy changes to support faster development or offer incentives to jumpstart starts. |
Looking Ahead
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Q3–Q4 2025: Monitor if starts rebound—an uptick would relieve inventory pressure. If not, expect longer-term supply constraints.
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Local focus: Neighborhoods like Guildford, Surrey City Centre, and Bridgeview may be hit hardest with fewer new multi-family dwellings.
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Policy radar: Watch for provincial measures aimed at boosting development—like relaxed zoning or funding support.
Final Takeaway
A steep drop in multi-unit housing starts is more than a statistic—it signals potential tightness in Surrey’s housing market, with real effects on affordability, selection, and economic growth. Buyers and sellers should factor this into their strategies, and the spotlight is now on developers and policymakers to address the looming supply gap.