House prices continue to spiral upwards as more 25-44 year olds continue to leave the city. So who’s fault is it?
One recent study says blame politicians:
Given their policies, Ley’s paper questions how politicians, particularly B.C. Housing Minister Rich Coleman, found it possible to argue in 2015 that Vancouver housing prices were “pretty reasonable” and that foreign ownership of property had nothing to do with government.
“Yet it most certainly did, for governments had for 30 years led trade and investment missions to Asia, and had used the tool of business immigration to draw in entrepreneurs and their capital.”
The inflated housing prices that have resulted in large part from new East Asian wealth are especially devastating for young and middle-aged Metro Vancouverites, Ley said in a recent talk sponsored by City in Focus.
A study by SFU researcher Andy Yan found that Metro’s university-educated adults earn the lowest wages on average in Canada’s 10 largest cities, Ley said. Many are “disillusioned” and leaving the city.
Read the full article over at the Vancouver Sun.
It’s the end of another week and that means it’s Friday Free-for-all time!
This is our regular end of the week news round up and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:
–Ignorance not bliss?
–Conrad Black, renter
–Not a good renter
–500 imaginary sq. feet
–Fed keeps rate steady
–How FTBs are doing it
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
Did you go to the emergency town hall meeting on housing in Vancouver last night? David Eby hosted with seating for 650, with the CBC reporting attendance of over 700.
“These are serious issues, this is a major crisis, and we want the provincial government to take it seriously,” said NDP MLA David Eby, who organized it.
The event started with Eby citing a long list of media stories highlighting questionable real estate practices and how housing practices have caused residents to leave the region.
Eby said the region’s real estate is governed by “runaway speculation” that is “unpoliced, unregulated and rampant.”
The CBC article has a live blog from the event if you missed it and are curious. Will events like this have any effect on Vancouver house prices or will non-owners eventually move away leaving the city as a home owners paradise?
Tighter mortgage rules were intended to cool the Canadian housing market, but according to National Bank economist Marc Pinsonneault they are having the opposite effect in the short term.
The new rules require insured mortgage holders to put down a minimum of 10 per cent for any portion of a house’s price above $500,000. The 5-per-cent minimum down payment still applies for the portion of a house price below that.
Economists predicted last year the rules would temporarily drive the market up, as homebuyers raced to land a mortgage before the deadline.
But Pinsonneault says the effect will continue this year, because the new rules don’t apply to anyone who locked in a mortgage before Feb. 15 of this year, and those people have until July 1 to buy a home.
It seems like everything done in the name of ‘cooling’ the housing market has the opposite effect. Read the full article here.
According to this article in the Financial Post Millennials are ‘fleeing Vancouver‘ and moving to cities where they can afford housing.
As housing costs have risen, so have the number of people in their twenties and thirties leaving the city. The net number of people age 18 to 24 added to Vancouver’s population was the lowest ever last year, at 884, and the number of 25-to-44-year-olds decreased by about 1,300, the biggest decline since 2007, according to Statistics Canada.
The tech industry is currently one of the key drivers of economic growth in the area, but they’re noticing the shift:
That driver of growth may evaporate as talent exits Vancouver, said Christine Duhaime, founder and executive director of the Digital Finance Institute, which supports Canada’s financial-technology industry. She’s having a tough time filling a 2,000-square-foot (186-square-meter) open-concept office for startups in Vancouver’s historic Gastown neighborhood she opened this year because potential tenants say they’re leaving the city for Victoria, Kelowna and as far away as London and Singapore.
“We’re banging our heads on the wall,” she said. “Why aren’t they staying? Because it’s too expensive. Vancouver is going to lose its tech edge.”
The nearest towns that seem to be benefiting from the exodus of young tech workers are Victoria and Kelowna. Read the full article over at the Financial Post.