British Columbia leads the country in job growth so far in 2006 and that bodes well for the province’s housing sector, according to Carol Frketich, Canada Mortgage and Housing Corporation B.C. regional economist. So far in 2006, employment in B.C. is up 3.4% compared to 1.9% in Canada, while urban housing starts were up 17%, ahead of the 5% national increase.

“There is a direct link between the labour market and the housing sector,” says Frketich. “Job gains and income growth help to fuel demand for housing, while a low unemployment rate makes B.C. more attractive for job seekers from other parts of the country, adding to population-driven housing demand.” According to Statistics Canada, the provincial unemployment rate was 4.7% in May, down from 5.9% one year ago, and below the 6.1% national average.

On the supply side, while builders continue to face labour shortages for some trades, the significant growth in construction employment during the past three years has helped the industry to deliver an increased number of new homes. Builders are busier than ever with almost 30,000 units currently under construction in the urban areas of the province.

“There are one-third more homes under construction now than during the building surge in the early 1990s,” notes Frketich. The resulting increase in supply of new homes will provide more choice for consumers. CMHC forecasts 37,000 housing starts in 2006 and 34,900 in 2007 for British Columbia.