Professor Gateman coined the term “Homeless in Vancouver” in one of his eccentric examples and it got me thinking: “What’s going on with Vancouver’s housing market?”
Vancouver retains the title of second least affordable city in an international ranking from Demographia. Compared to Vancouver’s median total income, housing prices has become exorbitantly high. The average cost of a single-family detached home has jumped to $1 million.
Housing prices are undoubtedly getting more expensive in Vancouver. However, the housing market bubble hasn’t popped yet because there are people who are willing to pay the price. It is only natural for the market to be driven by supply and demand. Vancouver is well known for its living standards and people will pay to live here if the utility gained is worth it. Foreign ownership may also play a part in inflating housing prices.
In time, however, residents who cannot afford to live in Vancouver must move away. We are already seeing this relocation. This will be a problem as the younger generation exit the community, bring their talent and innovation with them. Perhaps in ten or twenty years, Vancouver will be a shadow of its diversified and vibrant community.
The Globe and Mail: Vancouver Remains Second Least Affordable Market as Measure Improves Slightly
The Globe and Mail: Vancouver Housing and Income Don’t Add Up