Vancouver is one of the top most expensive real estate markets in the world. Not only that but it also has the highest cost of living in Canada. Millions across Canada are struggling to afford basics and wondering if their dream of owning a home might ever become a reality.
A number of factors have been blamed for the problem of high real estate prices in Vancouver and various political reforms have been tried to address the situation. From increasing down payment minimums to passing new legislation that taxes vacant homes etc, there is still a gross problem.
They might still want to look at other new taxes, such as those on foreign buyers as a solution, but does that get to what is causing the problem? This doesn’t seem to drastically address any issue with supply or how we got here in the first place.
The average incomes in Vancouver cannot afford these prices and they are continually being pushed out financially as the cost of living rises.
This will only bring more pressure to those living in B.C. and Canada, when they’re already facing great financial stress from the pandemic and rising cost of living in other areas.
Vancouver also has the highest gas prices in the country, though it isn’t the only expensive city in the region. As people continue to see prices on food, gas, and other services go up, and have limited options for what they can do and how they can enjoy in their lives. The more that they struggle just to cover the basics we can expect that their frustration will end up increasingly being vocalized to political representatives.
As we continue to see prices go up and those living in the region feel like they are never going to be able to catch up, the more this will become a hot issue for politicians as well. People want to see solutions and they want to see affordable housing, making sure that you have a roof over your head is a minimum that millions are still worried about.
You cannot worry about spending money on restaurants, going shopping, or planning a vacation, when you cannot keep a roof over your head. When the majority of your income goes to just paying rent you have little left to plan for the future.
So where are the solutions?
This has left growing calls for the government to step in and do something if they can to help the situation. Some suggest that the longer that they wait to step in and do something the worse the situation is going to be.
Now it also looks like more people are starting to point the finger more at low interest rates and their contribution to the problem here as well. But there doesn’t seem to be any plan to change that in the near future, it’s expected that those interest rates will remain low.
Just recently, RBC urged the government to step in and address the situation with the Canadian real estate market. It’s believed to be overheating and they want some sort of effort to try and cool that down.
The market right now is believed to be in a historic bubble, and it has some questioning will it ever pop? Will it just go up forever? If it does continue to go up what does that mean for future generations? Will jobs 20 years from now really be able to help families and working individuals afford 2 and 3 million dollar apartments? They are already struggling with the prices that we are seeing now and a great deal are priced out of the market.
The average income in Vancouver doesn’t qualify for the sort of down payment you would need for a detached home today and that is the reality that many are facing, they might never be able to own a home of their own, not unless it means uprooting entirely and going far away somewhere else.
The central bank has indicated that they are going to keep rates on hold in Canada until they reach their inflation objectives and some don’t think that we might see these rates move for year from now. It is those who are living in the region who are along for the experiment of what could possibly be the biggest housing bubble of all time.