Housetrapped: that’s how today’s Vancity report describes young families.
A new study of Metro Vancouver’s housing market shows millennial families are getting squeezed between the size and the price of homes.
It says family suitable options like multi-bedroom town-homes make up less than 10% of housing stock.
And where they do exist, says Vancity vice-president Andy Broderick, they carry a half-million dollar price tag.
“And it would require a household income of at least $86,000. And we’ve found that the average income of families looking for a home is $65,000.”
Broderick says that’s meant many young people put off starting families, While others are renting longer, putting pressure on an already tight rental market.
Highlights from the report:
- In August 2015, of all Metro Vancouver sales 17% were attached properties – primarily townhomes – with a benchmark price of $511,500, requiring a minimum down payment of $25,575 (5%) and annual household income of more than $86,364.
- In 2014, median total income for Millennials in Metro Vancouver was about $32,746, translating to an annual household income of $65,492 for dual-income families.
- In 2014, of the 688,000+ housing units in Metro Vancouver, only 11,377 (1.7%) were three-bedroom condos; of these, only 961 came on the market last year – 0.14% of overall inventory.
Recommendations in the report:
- Governments should focus on encouraging supply through incentives for developers, inclusionary zoning and partnerships to support shared-equity co-ops.
- Real estate developers and businesses should participate in public policy discussions, lead industry-level assessments and introduce reciprocity programs.
- Families should consider alternative locations, living styles and flexible ownership options.