How Vancouver’s housing market is going to impact the economy over the next two years

After four consecutive years of growth in BC, the economy is expected to slow over the next two years thanks to easing housing demand. In 2018, real GDP growth in BC is forecast to drop one percentage point to 2.8 per cent and decline further to 2.5 per cent in 2019, according to the British Columbia Real Estate Association’s (BCREA) Housing Forecast Update, published late last week. Along with low unemployment and easing labour force growth, the association attributes this slowdown to several housing headwinds, including stricter mortgage regulations, rising interest rates and elevated home prices.