Vancouver residents share housing struggles as election day approaches

Maralee chats with mortgage broker Michael Froese about the promises candidates are making on housing during the federal election campaign.

The BC Real Estate Association reports that the benchmark price for a single detached home in greater Vancouver is $1.8 million dollars, the highest in Canada, making home ownership out of reach for many people who live there.

Brendon Ogmundson, chief economist with the BC Real Estate Association, says Vancouver’s unique location comes at a high cost.

“Vancouver is very physically constrained. We have a border, mountains and we have an ocean, so there’s not a whole lot of building out that we can do,” he said.

Ogmundson adds that compared to the Greater Toronto Area, a single detached home in greater Vancouver is nearly $500,000 more expensive.

Corinne McKay, 41, has been renting the top floor of a modest home for two years and pays $3,200 a month in rent.

“For the most part, right now, we can’t afford to buy anything in Vancouver or the Lower Mainland,” said McKay.

She says the high cost of rent makes it impossible to save up for a down payment on a mortgage for an overpriced home. She says a duplex down the street that went for sale on the market last month is still out of reach.

“$1.4 million for half of the lot and half of the building” she said.

For Cameron Louie, 26, he is still hoping home ownership is in the cards for him. But the only way that can be a reality is by partnering up with his brother.

“You can’t really afford anything on your own unless you’re doing really well,” Louie said. “If you’re someone like me or my age, you have the odds stacked against you.”,” said Louie.

Tom Davidoff, associate professor at the University of British Columbia’s Sauder School of Business, says “too many people looking for not enough homes” is the reason for the skyrocketing prices.

However, he says municipalities have slowly improved in allowing greater density in already built-up areas.

“Vancouver has single detached homes on something like 70 per cent of the land. The city has started to allow infill projects of duplexes and fourplexes,” said Davidoff. “They need to be more generous and allow apartments … the province has stepped in in some ways to mandate that at least near transit.”

Housing is a top election issue

The NDP plans to spend billions of dollars on affordable housing, while the Liberals aim to drop the GST for first-time buyers on new and renovated homes under $1 million. As for the Conservatives, they say they will cut GST on new homes up to $1.3 million.

Kevin Barrett, a real estate agent in Vancouver, suggests more can be done.

“More federal policy to help people get into the market. I think it’s a big one,” said Barrett. “Maybe a smaller down payment, more policy around longer amortizations, maybe even some interest-free loans.”

Canada Mortgage and Housing Corporation says the country needs nearly 3.5 million additional housing units to be built by 2030 to restore affordability.

But despite the plans to improve housing affordability, for people like McKay, it might always just be a dream in her dream city.

“It’s very disheartening.”

For now, she’s staying put, and to make the best of her situation, she’s invested some upgrades into her rental, as well as doing some landscaping.

“I’ll put in the work to make sure it’s nice and homey for me, so it feels like it’s my house, regardless of not owning it.”