WATCH: Grim news for would-be homeowners in Metro Vancouver, as a new study seems to indicate that “trading up” from a condo to a house might be all but impossible. Sam Falk explains.
A new report by Vancity warns what many young adults in the region already suspect: that owning a starter home in Vancouver may be a dream, but owning a family home could very well be a delusion.
“There’s a lot on the market that could be considered affordable, or at least within reach, but they tend to be very small units, far too small for a family,” says Andy Broderick, VanCity’s vice president of impact market development.
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According to the report, just nine per cent of housing stock in Metro Vancouver are three-bedroom attached properties. Those had a turnover rate of just 9.5 per cent, meaning that only 0.86 per cent of all Metro Vancouver housing is suitable and available for purchase by families.
“I’m seeing a lot of parents with two children, purchasing two-bedroom condos because there aren’t a lot of three-bedroom condos, and if there are, they’re very expensive,” says Wanda Loo of Sutton Centre Realty.
Vancity says an average millennial couple makes $65,493, allowing them to afford a $384,000 mortgage.
But the average townhouse price in the region is $511,500, which requires an average income of $86,000.
“I’d like to see municipalities really understand how they can use the controls they have through planing and zoning, to not only get units under $400,000 build, but family units around $400,000 built,” said Broderick.
The report suggests governments focus on encouraging supply, exclusionary zoning, and partnerships to support shared-equity co-ops.
The full report can be read here.
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