House prices driving away key workers?

High housing prices in Vancouver are driving away the key working demographic of 25-40 year olds – more are moving to other provinces than moving in from other provinces.

This article was pointed out by crikey.

Despite the challenges, numerous companies interviewed by Reuters said most of their staff are willing to make sacrifices — like long commutes or raising kids in shoebox condos — for the benefit of Vancouver’s mild climate and outdoor lifestyle.

But those same companies, such as Vancouver-based retailer Mountain Equipment Co-op, also had examples of key hires who ultimately turned down jobs because of the high home prices.

It’s an issue Craig Hemer, an executive recruiter with Boyden, has been grappling with for the better part of a decade.

Hemer has learned ways to soften the blow — selling older executives on the idea of downsizing to a luxurious downtown condo and convincing those with families that suburban life offers more amenities for kids.

And how do the companies react to this challenge?

Companies too are shifting their policies, with some offering car allowances and transit subsidies. Others are opening small suburban offices or allow staff to telecommute from home.

But that isn’t always enough, especially in Vancouver’s start-up scene. Executives say it is easy enough to hire junior staff, but a dearth of experienced engineers and technology workers makes it hard to grow past a certain point.

“There’s just not enough high calibre people here. They all leave when they realize they can make more money in other cities and live there for cheaper,” said Simeon Garratt, chief executive of Spark CRM, a property-focused tech start-up.

“We debate at least once a month whether we should just move to Toronto.”

Read the full article here.

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UBC in crisis mode
Guest
UBC in crisis mode

After two years on the market, this property has a change of realtor and $1 million price drop:

http://www.realtylink.org/prop_search/Detail.cfm?MLS=V1096811&REBoards=All&From=MLS

Sure, it is still too expensive for new UBC faculty members.

Harry Wang
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Harry Wang

Chinese police break up adult breastfeeding prostitution ring

http://www.ibtimes.co.uk/chinese-police-break-adult-breastfeeding-prostitution-ring-1481180

bullwhip29
Guest
bullwhip29

it goes without saying that “key workers” in f&b and service related businesses can’t afford more than a 1br apt in Vanc. how is this news? to be able to afford a nice sized t/h or det home in Vanc, you’ve either got to be employed at an upper echelon banking, tech, medical etc type company making well above average coin or someone who came into a pile of cash via relatives, inheritance or windfall stock market and/or RE gains.

paulb
Member
Trusted Member

New Listings 58
Price Changes 35
Sold Listings 107
TI:11485

http://www.paulboenisch.com

Westside Realtor
Guest
Westside Realtor

$60,000,000 sale on Belmont?

Maybe I’ve been wrong.

That said, I am expecting a very decent surge of new listings starting in a week.

Bring it.

WSR

Whistler or bust?
Guest
Whistler or bust?

WSR – Strange how the only other person on this blog who ever signed his posts was Romeo Jordan “RJ”

Beat it phoney.

Westside Realtor
Guest
Westside Realtor

Whistler or Bust,

You’re wrong. And you know it.

Eat shit and you know…just do it.

WSR

Shut It Down Already
Guest
Shut It Down Already

Our resident westside “realtor”, for all his phone calls and coffee chats with other agents and wealthy Chinese clients, had no idea about the biggest ever sale in his target neighbourhood. Laughable. You’ve really got your ears to the ground, fool. You don’t even have full MLS access!

Westside Realtor
Guest
Westside Realtor

Shut it down already, aka Whistler or bust, aka Oracle,

I know more than you can imagine.

If I could short Vancouver’s westside sfh market I would short the bejeezus out of it.

But shut it down already you keep right on buying if that tickles your fancy.

Stupid is as stupid does.

WSR

Shut It Down Already
Guest
Shut It Down Already

“I know more than you can imagine.”

Yet you’ve never posted any information of value. How odd.

history
Guest
history

“Not only is China’s desire to buy US debt diminishing, so is its ability to do so. The banner years of Treasury bond purchases, during which holdings rose 21-fold over a 13-year period to hit $1.27tn by the end of 2013, were driven by an imperative to recycle China’s soaring US dollar current account surpluses. But these surpluses are narrowing sharply — from the equivalent of 10.3 per cent of gross domestic product at the peak in 2007 to 2.0 per cent in 2013. In fact, if financial flows are taken into account, China ceased over the most recent four quarters to be a net exporter of capital at all.”
https://www.creditwritedowns.com/2014/12/reading-ft-chinas-turning-away-dollar.html

RFM
Guest
RFM

I am a moderator at Vancouver Peak. There, we have Community Guidelines that you can view here: http://vancouverpeak.com/showthread.php?tid=5038

Were this blog to have similar guidelines and active moderators, some postings and users on this blog would be deleted, edited or banned.

That might keep comments in this forum more ‘focused,’ if readers and posters want that. Otherwise, have at it and, like the WWE, enjoy the spectacle, if nothing else.

patriotz
Member

Paying down debt is top financial priority for Canadians in 2015: poll

A new poll suggests that paying down debt is the biggest financial priority for Canadians in 2015.

Sounds good, but…

It is the fifth year in a row that debt repayment came out as the top concern in the annual survey by CIBC.

During each of which household debt reached a new high.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
CrashComing
Guest
CrashComing

$60 MILLION

Game changer perhaps. Housing prices could jump up significantly on that news.

Guess debt is the path to riches.

Ya right! This ship is sinking I can smell the stink of rot now as the market continues to decelerate.

history
Guest
history
Priced out by choice
Guest
Priced out by choice

#10 – I rarely agree with Shut it down already but he is spot on. WSR is a joke who adds nothing of value. His stupid general posts about the demise of the market have no actual evidence in them. It is clear he has been exposed as a fraud.

WSR why don’t you take a few months off posting and come back during the spring selling season when you are sure to have a lot of time on your hands.

Re-diculous
Member
Re-diculous

Pretty good buy versus rent assessment here….needless to say, renting wins hands down.
https://www.linkedin.com/pulse/why-buying-bosa-condo-wont-make-you-rich-teresa-leung?trk=object-title

pricedoutfornow
Guest
pricedoutfornow
I wonder if companies shouldn’t be instead telling prospective employees that although buying a house may be out of the question, it is a great rental market-then pull up various properties which can be rented for affordable prices. Yes, yes, I know, in Canada we are all real estate crazy, and think that everyone and their dog should own a house, but renting is acceptable in many parts of the world-like NYC. People don’t generally move to NYC expecting to buy a place, they rent. Companies should also point out that condo prices haven’t gone up in 5 years, so there’s really no rush to buy. We are a family of 4, very happy to be renting in Vancouver, and thinking that maybe this won’t be our “forever home”-so why commit to a million dollar house (that may in fact… Read more »
Whistler or bust?
Guest
Whistler or bust?

#20 “Companies should also point out that condo prices haven’t gone up in 5 years, so there’s really no rush to buy”

7 years for most places and 9 years or more in parts of the Valley

crikey
Guest
crikey
#19 said “but renting is acceptable in many parts of the world-like NYC. People don’t generally move to NYC expecting to buy a place, they rent.” But Vancouver isn’t New York City, not even close. The price/rent/income fundamentals in NYC make way more sense than Vancouver. The article even stresses that there is a world of difference between cities that have plentiful high paying jobs (like New York and San Francisco) and Vancouver — which depends on tourism and natural resources. When you then consider that Vancouver’s median family income was $72k in 2012, versus $92k in *Regina* of all places, it becomes even clearer that there is a big problem. Imagine if Kansas City had a higher median income than New York — if that were the case, wouldn’t that tell you something was amiss? #3 said: “how is… Read more »
Shut It Down Already
Guest
Shut It Down Already

Crikey, which other North American city are you comparing to?

chilled
Member
chilled

More mainstream media balderdash, I don’t even know where to start. As a matter of fact, I won’t even try. I will ask one thing though; Am I the only one that notices that the companies listed on various outlets as “the best companies to work for” are never the ones whining about a lack of workers?

Softy
Guest
Softy

When you then consider that Vancouver’s median family income was $72k in 2012, versus $92k in *Regina* of all places, it becomes even clearer that there is a big problem”

But everyone knows that tens of thousands of Vancouver residents do not report their worldwide income or their families are funded by a very rich off-shore income earner while the Canadian residents report almost zero income on their tax returns. The big problem is only in the quality of the statistics, not in the ability to afford high real estate prices.

patriotz
Member

@24:

I think you not only have it wrong, I think you have it somewhat backwards.

I think Vancouver really does have low median incomes and that is because it has high immigration. There have been a lot of studies on how immigrants to Canada are falling further behind the native-born population, and even if a few tens of thousands of rich ones misreporting their incomes that’s not going to change the totals noticeably.

What distinguishes the higher income Canadian cities from Vancouver? Their growth is based on domestic migration, while Vancouver’s is now based only on immigration.

Vancouver really does look poorer than Calgary or Ottawa. Look no further than the huge % of houses with basement suites. In any sensible city, that’s viewed as evidence of low incomes.

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