Supply vs. Demand: Vancouver

(June 14, 2016 )

In what’s being called an “accelerated” market, the prices of Vancouver real estate keep hitting new record highs. While it’s easy to blame foreign money and offshore investors for this situation, Salma Nurmohamed of CBC News offers a different argument.
“Offshore money, absentee landlords and even the latest villain, so called 'shadow-flippers', all get blamed for putting home-owning dreams out of reach.
But what if the answer is much simpler — what if there simply isn't enough housing to meet a steadily growing population?”
According to CMHC data, the number of new, completed units in Vancouver has remained almost unchanged in the last 15 years, averaging at 4,500 units per year; while the population of the lower mainland is forecasted to grow by 30,000 new residents per year. To make things more interesting, of the new units built, 1,300 of them were single family homes, and many of those were built to replace existing, older homes.
What do you think? Does it all trace back to offshore cash, or is it Vancouver’s lesson in supply and demand?