B.C.’s decades-long real estate boom has finally petered out. Developers are scaling back, putting projects on pause and trying to limit losses.
Construction activity is slowing down here in British Columbia, and especially in the Lower Mainland, in a way not seen in a generation.
As fewer buildings go up, a bigger crisis is looming – fewer jobs for construction and trades workers.
While the soaring price of real estate damaged affordability and pushed homelessness to new heights, it also provided plenty of work. In fact, British Columbia has relied on construction to power its economy.
As of 2024, there were 267,000 people working directly in construction, and the industry represented 9.2 per cent of B.C.’s total GDP. Compare that to the Canadian total of 7.4 per cent of GDP, of the United States, where it’s 4.5 per cent.
We have been building like crazy, and if that is slowing down in the face of unaffordable housing and slowing immigration, then the economic consequences could be severe.
Many workers won’t be fully unemployed, but the economic and personal impact of a prolonged slowdown could be profound. The difference between it taking a couple days to find a new job after a big project wraps up, and a couple of months, is more than most households can easily afford.
On the provincial and federal level, we will need a response if construction employment drops significantly in 2026 and beyond.
On the federal level, this is an opportunity to do what has long been promised – step into the housing industry in a big way. Ottawa could get back to building co-ops and affordable housing, if Prime Minister Mark Carney is sincere about his election promises.
The province and region already build affordable housing, through BC Housing and Metro Vancouver Housing. If construction employment flags, this is an opportunity to do more.
The province would also find it easier to find workers for non-housing infrastructure projects – schools, hospitals, and clean-energy projects, which are all things we certainly need more of, and as soon as possible.
Finally, we have a chance to consider building better rather than just building more. Ottawa has committed to investing in innovative projects like modular housing. B.C. has been pushing for mass timber projects.
One of the reasons housing is so expensive is because houses are essentially custom-built, unlike cars or electronics. In 2036, will we be building in the same, labour-intensive way? Hopefully not.
However we solve this crisis, one thing is unthinkable – allow the industry to collapse. That would put tens of thousands of skilled workers into dire financial straits. We have to make sure they can put their valuable skills to work.
– M.C.