Vancouver housing prices are insane, as they are in other parts around the country. It is one of the most expensive cities to live in not just in BC but in the world. Areas like Vancouver, Burnaby, and other regions, are some of the most expensive real estate areas in the world and that means Canadians are struggling to keep up.
While there are a variety of problems that have been highlighted as potential contributors to the problem, few solutions have been proposed to truly address the issue and make things better for Canadians who want to realize the dream of owning a home one day.
Buying a Home in Vancouver
A detached home in many places in the lower mainland is going to easily cost more than $1 million and that is a hefty down payment for a house that many individuals and couples cannot come up with. If you look for available apartment homes in the Vancouver region, you’re easily going to be spending hundreds of thousands of dollars.
Yes, even if it is just for a 1 bedroom. This has people looking to further areas outside the city and it is driving up real estate prices in those regions as well. The talk of a potential real estate bubble in Vancouver and around Canada has been discussed for years.
It is to the point now that people are wondering and asking, is the real estate bubble in Canada ever going to pop? Are the real estate prices sustainable? If the prices continue to only go up, what does that mean for future generations and lower income families living in the region? This is a serious voting issue for millions in B.C. and around Canada.
Housing is essential and when people are struggling just worrying about meeting their basic needs of food and shelter, they have little time and attention to worry about anything else. Canada has some of the most costly places to live in the world, Vancouver being one of the worst.
Vancouver apartments under 500k
These days there are several apartments that you can find that are listed for under 500k, including 1 and 2 bedroom options. With that price though you would be lucky to get a place with more than 1000 sf. With housing prices going up and many priced out of the market, they are left wondering if they are ever going to find a home for themselves.
A variety of solutions have been proposed over the years to try and deal with this situation. From taxes to minimum down payment options, to making it harder to get a mortgage. It has been suggested that Canada’s real estate market is dangerously over-leveraged and many have been waiting and warning about a housing correction to take place.
A lot of attention has been placed on foreign buying fueling the real estate problem and not much mind paid to the low interest rates and potential contribution from other areas. But now, things seem to be changing.
What is the average income in Vancouver?
The average income in Vancouver a few years ago according to Stats Can is around $72k, that is the median for Vancouver households. But you would need an income of much more than $100k in order to be prepared for and qualify for almost any detached home in Vancouver. Some of the least affordable regions after Vancouver are areas like Burnaby, Richmond, North Vancouver, Coquitlam, Surrey, Port Moody, North Delta, Maple Ridge, and other regions. Those that have been listed on the cheaper side of things include regions like Prince George, Kamloops, Langford, Penticton, and others.
Langford, along with other BC regions, has also been listed as one of the most livable places in Canada too.
The cost of living for millions around the lower mainland though, and in other areas of Canada too, is a struggle that is ongoing. With prices expected to only go up, along with other goods and services too in the future, that’s going to make it even harder for Vancouverites to get by and get what they need.
If you are wondering what 500k can buy in Vancouver, the answer is that it cannot really buy you much when looking at available stock on real estate sites in the region. Especially if you are looking for a lot of space. Compare that to many places in the U.S. and it is incredible to see the difference of what you can get for the same 500k.
When looking to buy an apartment in the lower mainland, there are a variety of places where 500k will get you some decent options for 1 or 2 bedrooms, maybe even 3 depending on the space and where you’re going. But saving up that down payment for that 500k apartment is also a struggle for many, one they might never accomplish. For the same 500k you can buy a full detached home in many areas, but the same cannot be said for the lower mainland in BC.
Some experts have suggested that it is time B.C. do something to try and cool the real estate market, but actions have been taken before that haven’t seemed to address the core issues. No significant changes have been seen in prices and supply over the years and many are still asking the same questions, is there a real estate bubble in Vancouver? If so, when will it pop? If it doesn’t pop, what does that mean for the economy and region? It isn’t a fun experiment to be a part of, for those who are struggling to keep up.
Homes in Vancouver are selling for hundreds of thousands of dollars over asking price. Some are increasing in value faster than people can earn money in the year to try and increase their down payment, they just simply cannot keep up no matter how hard they work. Many of those in B.C. are already spending well over 30 percent of their income on just having a roof over their head, the more that those prices increase that means the less they have for other goods and services.
Why is real estate in Vancouver so expensive?
Well, that might depend on who you ask. Will Vancouver real estate ever go down? That is what a growing number are beginning to wonder. Some thought that COVID-19 might have popped the bubble but it didn’t go down any significant amount. If you are waiting to pop before making a move you might be waiting forever, because no one knows when or if that will happen.
Are house prices dropping in Vancouver right now? Not at the moment, they’re red hot with multiple bidding wars going on for homes at the moment. It’s easy to see one home after the other selling for far more than asking price because of those bidding wars. Despite the restrictions still on international travel because of the pandemic that hasn’t’ seemed to slow down the market right now.