Bull! Bull! Bull! pointed out this article in the Vancouver Sun.
The ratesupermarket.ca survey of 1,700 Canadians found 52.8 per cent of Canadians overall cannot afford to start or expand their families, with 46.4 per cent of millennials sayings their existing debt was making it impossible, even before considering a mortgage.
Benjamin Tal, deputy chief economist with Canadian Imperial Bank of Commerce, thinks there’s no question household formation is being impacted by prices. “Common sense tells you it makes sense. We have an affordability crisis in large parts of the country. In these types of cases, people either stay in the basement (of their parents) but they definitely don’t buy a house. We know in the United States for sure this happened.”
Infrastructure in cities has not kept pace with density, as evidenced by some Toronto condominium developments posting signs warnings parents that their children might not be able to get into local schools because of overcrowding.
As Bull! Bull! Bull! points out, that’s not really a big deal because Vancouver isn’t a family town anyways:
that’s ok. young ppl can live in condos, ride bikes, instagram their breakfast, experiment with facial hair, smoke lots of pot and generally act like they never moved out of residence. (showers are optional). they’ll be happier anyways.
Read the full article here.
A funny thing happened on the way to financial security and easy riches, the condo promise in Vancouver didn’t really pan out for many young families according to a recent Vancity study.
The idea of a starter home is to get on the property ladder, then trade up as your family grows. But this doesn’t work as well when condo prices stagnate and single family home prices grow, especially when there are very few options available for 3-4 bedroom attached or condos.
Across the region, families who wish to move from a one-bedroom apartment or condo to a three-bedroom home with an attached yard would have to increase their debt level by an average of 95%. In Vancouver’s west side, this jumps to 158%. In the city’s east side, it is a much lower 78%. The biggest jump is found in White Rock, where debt levels would increase by an average of 164%.
Read the full article here.
M- and MarKoz brought up this topic – Vancouver seems to be seriously lacking in affordable family housing.
There are lots of 1 and 2 bedroom apartments, but not much available for 3-4 bedrooms until you go to houses. M- suggest the city requires more large units to be built to provide future homes for Vancouver families:
CoV could require condo developers to include a much larger percentage of 2-bed and 3-bed units in the towers that they’re approving, and require some of those units to have a more family-sized square footage. Maybe in exchange for higher density, to make it less controversial.
It won’t help much of anything today, but it will prevent today’s towers from becoming tomorrow’s ghettos.
My wife and I used to have an 800 sq.ft condo. It was too small for the two of us. Then we got a 1000 sq.ft apartment, and it was enough space for the two of us (we would have liked more, but it was good enough).
Then we had a kid.
The 1000 sq.ft unit slowly became too small for our family, so we’ve upgraded to a house (rental, of course).
We keep an eye on the condo/house markets, and there’s not much selection of 3-bed units out there, until you get into houses.
When I went condo hunting I could find nothing similar. You would have marginal master bedrooms and second bedrooms the size of a closet. The master bathroom was usually huge at the cost of a smaller living room etc. All had fireplaces – a waste of precious wall space in a small unit. Stainless and granite with barely enough counter space to lay a pizza box. Closets were minimal as was out of suite storage.
I moved on to townhouses. 1200 square feet spread over 3 floors is worse than 800 square feet on one floor. So much space given over to stairs and landings.
Who wants these places? Apparently everyone but me. They sure are selling. In the US they have plenty of 3 bedroom units but I guess those don’t attract specuvestors like 565 sq ft one bedrooms.
It’s that time of the week again!
Let’s do 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:
–Experts perplexed at decline in sales
–Vancouver too tiny to count?
–CTV video on squeezed families
–Downtown Vancouvers Dead Zone
–Toronto condo sales plunge
–Offering 90k over ask on single bid?
–Expanding the seawall past Kits
–tougher credit cheaper houses
So what are you seeing out there? Post your news link, thoughts and anecdotes here and have an excellent weekend!