Lesson Learned From Past BC Recession

As BC emerges from Covid-19, there is much work ahead to safely restore the economy. The global housing crisis in 2008/09 was the last big economic decline requiring many years to recover. Housing starts in Greater Victoria began to rebound in 2010, but the provincial government announced the HST resulting in further erosion of the market. After the HST was removed in 2013 due to public opposition, we returned to more normal numbers in 2015. Since then, strong housing starts and employment have been led by a large demographic of millennials starting families, record immigration, and baby boomers retiring in BC. That is until the pandemic hit in March 2020. On the plus side, the BC government wisely established construction as an essential service. As a result, BC has been able to provide services and employment on a reduced scale, while limiting the spread of the virus more successfully than most provinces.

So far, housing starts in the CRD have declined only 8% year-to-date. Surprisingly, our numbers were up 4% in April compared with the same month last year. In large part, this is due to Langford, Colwood, View Royal, Sooke and Esquimalt where 80% of new housing is being constructed. It is expected other municipalities will post better numbers as the virus subsides and creative methods of doing business are adopted, such as electronic public meetings. While it will take time to fully recover, the lesson learned from the last recession is clear. Put a hold on government regulations and taxes to enable businesses to get back on their feet. The result will be strong employment and a much healthier community.