Anyone born in the 21st century should kiss goodbye any hope of buying a house in Vancouver.
At least, that’s the prevailing impression among post-baby boomer generations struggling to make ends meet, let alone save enough of a down payment to buy a single-family home in the Lower Mainland’s urban core.
According to Real Estate Board of Greater Vancouver (REBGV) data, the benchmark price of a detached house in Metro Vancouver was $927,000 in December. The most expensive homes sold have been in Vancouver’s west side where the benchmark price was $2.1 million, 10% more than West Vancouver’s $1.9 million.
But more blue-collar neighbourhoods aren’t affordable either. While the price of a home on Vancouver’s east side was $867,200, it was $956,200 in South Burnaby, $940,100 in Richmond, $912,400 in North Burnaby and $859,800 in Port Moody.
All the single-family homes in these neighbourhoods have seen double-digit percentage growth in prices over the past five years. Prices have risen the most on Vancouver’s west side (nearly 60%), in West Vancouver (58%) and in Burnaby South (40%).
Whether foreign investors, rich immigrants or the buying whims of wealthy baby boomers of Vancouver caused the price appreciation, the best chance for young workers to buy a house today is winning the lottery.
It’s not surprising then that most new homes under construction in the region have been in condominium highrises that pack in hundreds of people in the same footprint of a few houses. Young people who may have grown up with their own bedroom and closet in a house will have to buy a home with a bedroom the size of a closet. Or they will rent for the rest of their days.
If current trends of consistent price appreciation and wage stagnation continue in B.C., residents’ choices might be made for them.
Demand for housing will continue to grow as the region’s population grows. Properly planning for that growth will be key to keeping not only the region sustainable, but homes livable.
