Well, we've had a couple days to let that partial yet massive list of projects sink in so now let us look at some data and charts to illustrate the point further. The point being that BC not only has a housing bubble but a construction bubble fueled by loose lending and speculation in the residential sector and by government largesse in the non-residential sector. Hat tip to van_coffee for the data - thanks.
First chart illustrates the nominal value of building permits issued. Note: this only includes 'buildings' not infrastructure like highways, bridges, skytrain, etc. See definitions via Statscan.
Build those strip malls. I'm not exactly sure how the statisticians classify projects but we can see from the previous couple of posts where the bulk of the non-residential construction spending is going. Many government projects like the trade and convention centre are likely classified as a commercial project although it is in fact a government project.
This chart illustrates the value of building permits issued when adjusted for inflation and population.
Real per capita spending on non-residential construction has risen dramatically after a long decline period during the nineties. We can also see what a slowing economy and a tightening of lending standards does to non-residential construction by looking at the early eighties contraction as an example.
Please not that these numbers DO NOT include the massive infrastructure projects that are happening and worth upwards of $5 Billion in the Vancouver area alone.
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