July Real Estate Happenings
In July, the NDP government announced they will start tracking beneficial ownership of properties. They will change the property transfer tax forms to capture this information. The data will allow us to understand the composition of buyers that were previously obfuscated by complex corporate structures. Their 30-point housing plan promises that this beneficial ownership information will be publicly available. While information alone won't solve our housing crisis, it will be one more piece in figuring out the real estate puzzle.
Also, here are two new data points on how Vancouver stacks up in terms of affordability. One was released in May, but I found it in July so that counts right? Our very own Andy Yan, director of the City Program at SFU, put together a nice graph on the ratio of median price to median income. Vancouver comes in as the most unaffordable city in North America. Our situation stems from the double whammy of sky high prices (median: ~$800k) and rock bottom wages (median: ~$72.6k). The other data point is the Rental Housing Index which uses 2016 census data. The Rental Housing Index shows that, across all households in CoV, we spend 24% of our income on housing which is uncomfortably close to the upper limit of 30%.
Enough doom and gloom, at least the stats say things are stable.
July Rental Stats
- 1 bedrooms $1950 (+2.7%)
- 2 bedrooms $2650 (+1.4%)
- 3 bedrooms $3000 (0.0%)
After the large absorption of supply in June, we saw 5319 listings in July which is a whopping 15.2% more than July 2017. This also represents a 4.75% growth in listing volume from last month. Summer is usually tight relative to the rest of the year for rental supply, but we saw more listings this month than any month in 2017. If this year is like 2017, we expect to see the supply of rentals continuing to grow until December.
Rents are still range-bound. I don't think median rents have much further to grow in the near future because they are inherently tied to local incomes. Median rents have have been steady since the beginning of this year. Actually, in January 2018 we also had 1 BRs at $1950, 2 BRs at $2650 and 3 BRs at $3000 exactly!
Year-over-year, rental prices have gone up slightly above inflation for 1 BRs (+2.9%), and 3 BRs (+3.4%). 2 BRs median rents have been steady for an entire year and saw 0% growth.
If we assume that rents should be at most 30% of gross income, then the median 2 BR unit is affordable to households with incomes of $106,000. From the 2016 census, only 35% of households in Vancouver make sufficient income (> $100k) to afford the the median 2BR unit.
|Beds||Median 2017||Median 2018||Pct Change|
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