August Real Estate Happenings
We're world class unaffordable - The Economist released a study ranking Vancouver as 4th least affordable among 22 of “the world’s most vibrant cities”. Their conclusion is based on a ratio of median incomes to housing prices. The fact that we scored highly won’t shock anyone here. What did surprise me is how much affordability has eroded everywhere else. Only four cities (Singapore, Milan, Tokyo and New York) were relatively stable over the last 18 years. If you want to learn more about this synchronizing phenomenon check out the work by the smarty-pants over at Better Dwelling.
Major win for everyone-but-realtors - The Supreme Court of Canada ended the Toronto Real Estate Board’s death grip on sales data by refusing to hear an appeal, The Court ended a seven year long fight to give everyone access to historical transaction details. These details can now be posted online. This sets the stage for some much needed modernization of the real estate industry. The Court’s decision sets a precedent for data sharing in BC. We’ve always been able to access up to three year’s worth of transaction data via BC Assessments. But, three years worth of data isn’t helpful when two of them were during a historical run up in prices. Ready to throw up your hands in disgust when you finally see what houses were going for in the 90’s?
CoV short term rental rules come into effect - After a long process, the city has put in some restrictions on the types of short term rentals that are allowed. By Sept 1st, all AirBnB owners in Vancouver must get a business license and comply with the new rules. These rules discourage investors from purchasing units solely for the purpose of AirBnB. Jens Von Bergmann dug around and found that more than half of listings currently don’t have a business license. I wonder where these units will all go? :wink:
Foreign influence - According to BC's property transfer data, foreign buyers were involved in less than 2% of transactions in Metro Vancouver, but 68% of Vancouverites believe them to be very influential.
August Rental Stats
August saw a typical end-of-summer surge in volume. The number of unique listings increased 10% from July to 5872, which is 17.6% more than August 2017.
Prices were stable across all monitored unit types. Only two bedrooms saw a bump of 2%, whereas one and three bedrooms were flat. If you've been keeping track, these rents basically haven't budged since January. Eight months ago, we saw rents of $1950, $2650, $3000 for one, two and three bedrooms respectively.
I'm dying to see how the new short term rental restrictions will affect these numbers. If enforced, the new rules should lead to more listings and hopefully some easing in prices.
- 1 bedrooms $1950 (0%)
- 2 bedrooms $2700 (+1.9%)
- 3 bedrooms $3000 (0%)
|Beds||Median 2017||Median 2018||Pct Change|
If you want to stay up-to-date on Vancouver's rental market, sign up for my newsletter in the navigation bar.