The construction industry in B.C. grew rapidly from 1986 to 1995. Between 1996 and 1999, however, construction activity declined due to weaker population growth, slower economic growth and weaker labour markets. Since then, non-residential construction activity has remained relatively stable, but residential housing construction is still below its 1994 peak. Low levels of residential construction since 1995 have created much demand for housing. Industry sources expect higher than average levels of residential construction and thus expect higher employment growth over the short term.
Construction generally is sensitive to such factors as interest rates and material costs.
Population growth and an aging population also directly affect residential construction activity. Many contractors and construction tradespersons rely on such activity to generate business. Seniors staying longer in their homes, divorce and young people expecting to form their own households are among the demographic and lifestyle changes that are affecting both the quantity and mix of housing buyers can afford or want. After a boom in the first half of the 1990s, the construction industry remained flat. The commercial construction industry is starting to recover.