Americans moving for affordable housing

The fastest growing cities in America are now the ones where housing is more affordable than average.

This is a change from the early part of the millennium where credit was easy and mortgages were easy to get.

Rising rents and the difficulty of securing a mortgage on the coasts have proved a boon to inland cities that offer the middle class a firmer footing and an easier life. In the eternal competition among urban centers, the shift has produced some new winners.

Oklahoma City, for example, has outpaced most other cities in growth since 2011, becoming the 12th-fastest-growing city last year. It has also won over a coveted demographic, young adults age 25 to 34, going from a net loss of millennials to a net gain. Other affordable cities that have jumped in the growth rankings include several in Texas, including El Paso and San Antonio, as well as Columbus, Ohio, and Little Rock, Ark.

Newcomers in Oklahoma City have traded traffic jams and preschool waiting lists for master suites the size of their old apartments. The sons of Lorin Olson, a stem cell biologist who moved here from New York’s Upper East Side, now ride bikes in their suburban neighborhood and go home to a four-bedroom house. Hector Lopez, a caricature artist, lives in a loft apartment here for less than he paid to stay in a garage near Los Angeles. Tony Trammell, one of a group of about a dozen friends to make the move from San Diego, paid $260,000 for his 3,300-square-foot home in a nearby suburb.

Read the full article in the NY Times.

If you’ve tried to hire someone from outside Vancouver for a position here, you may be aware of the challenge presented by expensive housing.

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crabman
Guest
crabman

I love the fact someone in that article left Seattle because housing there is too expensive. It’s about half the price of Vancouver.

Funkeymonkey
Member
Funkeymonkey

The price of real estate in this town is depressing.
I wish my household made 200k per year so we could buy some mouldy house and scrape by in this town.
I like my job here I like my friends.
My family and I are going to move soon.

UBC in Crisis Mode
Guest
UBC in Crisis Mode

Are we off FFFA! topic already? Unbelievable!

There are trillions of dollars to be moved to overseas from China, so Vancouver overpriced properties will have buyers for next 5-10 years. Poor locals … …

Son of Ponzi
Guest
Son of Ponzi

#3
There are trillions of dollars to be moved to overseas from China, so Vancouver overpriced properties will have buyers for next 5-10 years. Poor locals … …
—————
Together with the Trillions created by Cristy’s LNG dreams,
No one in B.C.will have to worry about money anymore.
Stupid idiot

M

Westside Realtor
Guest
Westside Realtor

I thought garth turner’s blog tonight was interesting.

I imagine he will be posting about the weakness in Westside sfh sales soon.

This summer has been the nicest that I can recall in quite some time, but sales are shit at the moment.

Piklishi
Guest
Piklishi

Question: I was driving last night on oak st, there was a block between 64th and 70th that had all houses for sale. What is going on there, no one is buying?. This might be the beginning of the bubble deflation or maybe they are asking too much hoping for HAM.

poor local
Guest
poor local

I’ve been a bear for a decade now. Yes, I’ve been wrong for a long time. So long that i won’t be throwing in the towel even if i never buy. Is Vancouver the BPOE? ABSOLUTELY NOT. but it’s better than China, so as long as our doors are open to immigration and China has the fastest growing economy in this decade, there will be more and more China millionaires wanting to pay what defies logic prices in Vancouver. Locals will bee moving away and the nouveaux riche Chinese will be buying here (maybe not living here though). If i throw in the towel one day it’s won’t need to buy, but to leave.

Oracle
Guest
Oracle

The Greater Vancouver Area will become Chinese Majority in a decade or so.

I think what’s needed is a referendum on immigration numbers. A big battle as the large corps control politicians with brown paper bags.

onenagryslav2
Guest
onenagryslav2

“I think what’s needed is a referendum on immigration numbers.”

Immigration is a federal issue.

West Coast Woman
Guest
West Coast Woman

Perhaps we’d have more affordable housing too, if we weren’t run by a City Council beholden to developers, who are selling us all down the river. Here’s an interesting link someone from Dunbar just sent me:

http://cedarparty.ca/martha/

I don’t know much about the Cedar Party, but the information they’ve been divulging lately has been interesting.

crikey
Guest
crikey

@#6
If I’m not mistaken that part of Oak has been rezoned to allow for something like 6 story buildings. They’re all looking for big developers to swoop in, so these aren’t your average resales at all

tedeastside
Member
tedeastside

America has the greatest cities in the world
even their most expensive cities are cheaper than vancouver and have 10 million times better job opportunity

patriotz
Member

@10: “Perhaps we’d have more affordable housing too, if we weren’t run by a City Council beholden to developers”

RE prices are set by buyers. If they were set by sellers the OV would not have gone bankrupt, as another poster pointer out.

I think developers are a bunch of greedbags but they don’t control prices, which is why they spend so much money and effort trying to convince the public that “Rich Asians” are buying everything and you’d better buy now.

patriotz
Member

@8: “The Greater Vancouver Area will become Chinese Majority in a decade or so.”

It’s currently 20%, i.e. about 500K out of 2.5 million. To move to 50% in a decade would require about 100K new Chinese every year in the absence of any other population growth. That’s three times total annual Chinese immigration to Canada.

fitzrovia
Guest
fitzrovia

Patriotz that is correct however clearly they are the marginal buyers. Forget Alberta which is another one of their booms which is spilling over into the Ok.

Look at other parts of the country. Garth has mentioned NS, Quebec and Mb as being weak and Victoria as being in a full scale correction, even as TO and Vancouver march on.

I looked at Victoria and he is right the HPI for Victoria REB was 141.4 five years ago and now it is 140.9. The benchmark price for single family was $499 five years ago and now it is $497K

So what does TO and Vancouver have that these cities don’t? A very robust economy or HAM?

logic
Guest
logic

The large institution I get a paycheck from hires many out of towners every year.

It is still rather easy to convince childless couples or singles to move here (as it’s quite a lovely place, on the whole), but it’s getting very hard to convince mid-career hires with a family to do so (for obvious reasons). And we’re starting to find it hard to retain mid-career staff who have procreated.

So, we are ending up with a staff demographic (in the under 45 category) of the childless-by-choice, or the gay, or the single. Which is great for having more after work drinking buddies, but probably not great for the city as a whole…

patriotz
Member

@15: “Patriotz that is correct however clearly they are the marginal buyers.”

The marginal buyer is the one who is least able to pay. One of the basic definitions in economics.

fitzrovia
Guest
fitzrovia

“The marginal buyer is the one who is least able to pay. One of the basic definitions in economics.”

You are right, my use of words was wrong. They are anything BUT marginal buyers. They are the buyers from whom price, carrying costs. interest rates and future appreciation potential have limited weight in the transaction.

they are more concerned with getting the money somewhere stable, having the right view/ street look and Feng Shui (if that matters to them).

patriotz
Member

@18:

Suppose there’s a village with identical houses where 10 households can afford to buy. The houses will all sell for the same price. Who determines the price – the household who can just afford to buy.

Now Bill Gates decides he wants a summer home and buys a house. Who now determines the price of the houses?

david
Guest
david

Americans are not averse to moving, because that country has economic opportunities in many, weather-tolerable places. And its not economically prohibitive to move and travel. And the government isn’t as willing to pay people to be lazy and stay where they are forever doing nothing.

Those idiots.

Many Franks
Member

Remember this horrible crack shack on the 1000 block of Keefer? It’s listed on the heritage registry but there’s really nothing left to preserve.

It sold on August 1st, but in the early morning of August 2nd — horrors! — it burned to the ground, along with the (also derelict) house next door.

The new owner must be shattered by the loss of the heritage structure, but I’m sure they’ll be able to put this behind them. Perhaps the resulting removal from the heritage registry will help them overcome the shock.

Many Franks
Member

(“Hey, I bought this great house yesterday! The granite countertops are on back-order at Home Depot, but for now I’m just using it to store my oily rags and rusty propane tanks.”)

VMD@work
Guest
VMD@work

Life’s finally back to a more normal pace for me, I’ll try to fill in the gaps in my spreadsheets in the coming weeks.

Some quick stats released today from Fraser Valley RE Board:
Benchmark price:
SFH: +3% YoY
TH: + 0.2%
APT: -3.6%
“It’s a different story for condos. In most of our market, there’s
excellent selection and prices lower than they were one year ago offering tremendous opportunities for buyers”

Dave
Member
#10… The average developer does not look highly upon City Hall. Most developers complain about DCC’s, amenities and project delays. The timeline to build in Vancouver is longer now than it has ever been. I have heard one developer say that although the bureaucracy is challenging, it’s also a barrier to entry, so it keeps supply lower than it could be. I think it is possible for us to have better affordability in Vancouver but nobody is truly pushing for it. The average person has no idea what a DCC is and they don’t make the link between that and home prices. The nature of supply and demand really isn’t a secret and it’s been proven out time and time again. As it relates to Vancouver, the City has resisted higher density than what could be achieved on transit routes.… Read more »
Seafair Dweller
Guest
Seafair Dweller

@Dave #24,

I have upvoted your comment, even though I don’t agree with all your points, because I agree that a lack of supply is one of the major factors influencing high prices for Vancouver area housing. Excess paperwork at city hall is one factor; others include land constraints such as mountains, water, bridges, the border, and the agricultural land reserve. Many of the expensive American cities (New York, Washington, San Francisco etc.) have some of the same issues.

We can’t change the mountains or the water, but we should at least talk about some of the other factors (DCCs, ALR etc.) – even if the final decision is that we’d like to keep them as they are.

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