October 1, 2019

Economic Impacts of the Housing Industry in Newfoundland and Labrador

Once again, the CHBA has prepared estimates of the positive impacts of the residential construction industry on the Canadian economy and on provincial and local economies across the country. The estimates for 2018 are based on actual results for the past year, and include investment, direct and indirect employment, and wages paid. The scope of construction activities addressed includes new dwellings of all types, including both primary residences and cottages; renovation, conversion and repair of existing dwellings, and conversion of non-residential buildings to residential use; and other expenditures relating to new residential construction such as realty and legal fees. The estimates of impacts continue to illustrate the huge importance of residential construction in generating jobs, wages, and investment. Various emerging economic factors have the potential to affect local housing markets in 2019 and beyond. These factors include: changes in mortgage interest rates, terms and conditions, recognizing that rates have been very low for the past five years, in response to the economic situation; changes in international, regional and local economic conditions, especially overall job creation and unemployment; higher government-imposed costs such as taxes, fees, levies and charges; and land-use regulations and shortages of serviced land. These factors reinforce the need for the home building industry to monitor carefully global and domestic conditions and events in the continuing post-crisis period of economic uncertainty.