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Demographia has released the results of its international affordability survey, revealing that after Hong Kong, Vancouver is the most expensive city in the world. What factor is most important in the survey? Property. The median home price in Vancouver settled at just under $680,000. They then took that number and compared it to the average median income, and the results were mildly depressing. Home prices in the city are 10.3 times the median income in the Vancouver area. This means that even if a Vancouver resident could live expense-free and tax-free for 10 years, they would barely qualify to pay directly for the average house.
Factors that contribute to Vancouver's high cost of living include zoning restrictions and regulations that prohibit the construction of townhouses in single-family neighborhoods. Land development regulations are intended to reduce the amount of land used for construction projects to preserve Vancouver's natural beauty, but it comes at a high cost. With limited homes on the market, real estate has shot through the roof. The average Canadian family could never move to Vancouver simply because of the lack of real estate and the extremely high cost of living.
Of course, for those who have invested in the Vancouver real estate market, this is good news. Flipping or flipping a house (especially a detached house) is very easy. Profits are increasing every year in home ownership and according to analysts, they will continue to grow. In fact, Vancouver home prices have increased 100 percent since 2001! That number is scary for some, but like most other big cities, the news is welcome for the higher ups. As long as incomes continue to rise, the price of homes will not become a deterrent. The number of new residents in Vancouver continues to grow each year. The city is expected to grow by over 300,000 residents over the next 3 decades. This number means more demand for housing and fewer available options.
While many people are still flocking to Vancouver, many more are leaving the city. Especially for young people, it's hard to make it in the metro area. However, after all, real estate is still booming and the numbers are expected to grow with each passing year. Only time will tell if the price of housing in Vancouver will ever return to a reasonable level.
Looking for the best real estate investment opportunities in the Greater Vancouver Area, please consult with a Vancouver real estate agents
