New housing starts skyrocketed in the metro region last year, according to the 2024 economic review recently released by the capital city.

The report looks at economic indicators for the St. John’s Census Metropolitan Area, which encompasses the capital city and other neighbouring communities.

The report indicates a “surge” in new construction, with 871 new housing starts in 2024 – an increase of over 75 per cent from the previous year. The spike is attributed to lower interest rates.

The effect of new housing starts can be seen in total employment growth for the region, which increased by 3.5 per cent from the previous year. The city notes that 1,000 jobs were added in the construction industry during that time.

Household income is also up, reaching over $12.5-billion for the year. That’s an eight per cent increase, which the report says reflects stronger employment and higher wages.

Inflation rose by 2.2 per cent, marking a slowdown from a 3.7 per cent increase in 2023 and a 5.9 percent jump in 2022.

Elsewhere, the region’s real GDP is up by 5.2 per cent due to a rebound in oil production, or a 5.6 per cent increase if oil isn’t factored in, and retail sales increased to $6-billion.

Overall, the capital city says the region is expected to see growth in 2025, but the threat of US tariffs poses a “significant risk” to the outlook.