Recently the Canadian dollar has fallen below 69 cents which is has been the longest losing streak since 1971. Many invested in Vancouver Real Estate wonder what type of impact this will bring the market.
Real Estate Rental Units have increased As the new rental units have increased from 5% (2005-2009) up to 20% (2010 - 2014) we're seeing a steady trend that the market is increasing in value to the point where it's hard for local residences to afford. Despite over 834 new apartments being build which is the largest amount of since 1986 the vacancy dropped in every municipality except the District of North Vancouver and the city of Vancouver which were still dangerously low rates. Low Vacancy has been seen to lead landlords to increase the prices which force tenants to move out. Average rent for a 2 bedroom unit in the area went from $1849 in 2014 to $1951 in 2015.
Renting has Increased, Buying has Decreased Many are motivated to rent rather than own as the costs are out of their price range. Many affordable homes are finding reduced vacancies so landlords have been found to jack up prices when tenants move out of old units or have to renew their unit. This has been known to force some to move to other buildings or move further from Vancouver. Many affordable units are also being destroyed to make room for non affordable units. As this happens many buyers are moving to suburban areas, and investments from other countries purchasing the newly designed real estate units for great prices due to the lower dollar.
What's changed? According to CMHC Housing Authority they believe the low vacancy was driven due to people moving from provinces, plummeting oil prices, immigration, and surging real estate prices that keep younger people from buying homes.
What can be done? B.C.’s ministry responsible for housing said it will review the CMHC report and that it regularly reviews the Residential Tenancy Act to ensure it balances the rights of tenants and landlords. There is also a team of nine academics from UBC and SFU that have proposed a new policy to help curb the city's runaway home prices. For those of you interested can read the full policy proposal here. Let us know your thoughts on the recent events and how it's impacted your living or sales in the Real Estate Market.