December 27, 2019

Compare Listings

Vancouver’s housing affordability is decreasing

Vancouver’s housing affordability is decreasing

Table of Contents

  • First the Evidence
  • Factors that lead to decrease in Affordability
  • Other Things to Consider
  • Speculative Activity?
  • Possible Solution?
  • Your Thoughts?

First the Evidence

It’s now evident that affordability in Vancouver housing is decreasing. This is attributed to the ever-increasing demand both from the locals and foreigners. The increase in demand is due to the high rank that this city enjoys. This city is said to be one of the world’s livable locations. It is also ranked 4th in terms of its quality of living as compared to other cities in the world. These factors have led to very high demand for housing within this city leading to sky-high prices of houses in Vancouver. Anyone looking to buy a home in Vancouver now must have incredibly deep pockets.

Factors that lead to decrease in Affordability

It’s now evident that affordability in Vancouver housing is decreasing. This is attributed to the ever-increasing demand both from the locals and foreigners. The increase in demand is due to the high rank that this city enjoys. This city is said to be one of the world’s livable locations. It is also ranked 4th in terms of its quality of living as compared to other cities in the world. These factors have led to very high demand for housing within this city leading to sky-high prices of houses in Vancouver. Anyone looking to buy a home in Vancouver now must have incredibly deep pockets.

Other Things to Consider

Other factors that may have resulted to high prices of housing is the fact that Vancouver is one of the largest city in Canada, where it is ranked 8th. Vancouver is also a coastal seaport which has also seen tourism thrive as one of the main industry. This goes without saying a good reason for the skyrocketing prices in the real estate sector.
A steady rise in job creation has also been cited as the other factor leading to the un-affordability. I know that this sounds confusing to some, but this how job creation translates to un-affordability; the more jobs out there mean more money, thus more house buyers. It’s this high demand that leads to sky-high prices.

READ MORE:  Vancouver Real Estate Investment Outlook 2010 and beyond

Speculative Activity?

Vancouver is ranked 4th least affordable city in the world. Asked of my opinion as to which is the main reason for this overshooting of property values, I would out lightly site excessive speculation which I think is happening in Vancouver home market today. The onslaught of foreigners in the market comes also as a catalyst to the problem. This might be good to the real estate investors, but it is not doing Vancouver’s residents any good. The city should embrace cooperative housing, secondary suites, among other strategies as a way to tackle this problem. Otherwise, the price of houses will keep on the same trend.

Possible Solution?

The city should also limit the number of foreign investors as to what they can do once they purchase real estate. For instance, the government should prohibit an investor from selling the home they purchase anytime less than 3 or even 5 years after they have purchased it. This would stop speculators & predatory behaviour in our market.

Your Thoughts?

What do you think about this topic? Feel free to leave a reply.

img

Richard Morrison

My name is Richard Morrison and I aim to empower people to buy and sell real estate in the most effective way possible. I can service all of your Metro Vancouver real estate needs & beyond. I specialize in Vancouver, North Vancouver, West Vancouver, Vancouver West, Richmond, Burnaby and other areas in the Lower Mainland BC Canada. You can be assured that whether buying or selling your home, I will get the job done. I offer a full compliment of real estate services with 15+ years of experience.

Related posts

Renovating your townhouse

Hello guys, I decided to post a blog about a particular case study of a townhouse in Burnaby that...

Continue reading
by Richard Morrison

5 Ways AR & VR Can Reshape Real Estate

Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR) are a lot helpful to many...

Continue reading
by Richard Morrison

11 Surprising Ways Vacant Land Can Fuel Your Dreams

When most people think about growing a business that leads to both financial success and personal...

Continue reading
by Richard Morrison