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Vancouver’s housing affordability is decreasing

May 20, 2012

Filed under: Real Estate Market,Vancouver — Richard Morrison @ 2:44 pm
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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 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 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 sky rocketing prices in the real estate sector.
A steady rise in job creation has also been sited 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.

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 markt 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 way to tackle this problem. Otherwise the price of houses will keep on the same trend.

 

The city should also limit the amount 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 behavior in our market.

 

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

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