The real estate market in Vancouver, Canada, has been experiencing a significant shift over the past few years, according to a recent conversation between two industry professionals. The transcript of their discussion sheds light on the current state of the market and some of the factors that are influencing it.
One of the speakers notes that there seems to be a gap in the marketplace for two-bedroom condos, with more people, either upsizing to larger homes or downsizing to smaller ones. Three-bedroom homes are in high demand, and the speaker predicts that in the near future, the most sought-after properties in Vancouver will be three-bedroom, 1500+ square foot units.
The conversation also touches on the changing composition of the market, with detached homes making up a decreasing percentage of all transactions. According to the speaker, this trend reflects a shift towards attached homes like townhouses, duplexes, and row homes. However, even these types of homes are under pressure due to land restrictions and a lack of new construction.
One of the biggest challenges facing the Vancouver market, according to the speakers, is a lack of supply. The province of British Columbia is only building around 40,000 new homes a year, despite an average of 50,000 people moving to the province each month. The speakers note that this has been a problem for over two decades and has not been addressed from a supply-side perspective.
The speakers also touch on the prevalence of second suites in Vancouver homes. Most detached houses in Vancouver have a suite, but surprisingly, around 75% of these suites are unauthorized. This means they are not built to code or for the purpose of being a rental unit. The newer homes tend to have legal suites built in, along with laneways. However, there are few brand-new detached houses on the market, with most new construction consisting of duplexes and other attached homes.
In summary, the Vancouver real estate market is undergoing significant changes due to shifting buyer preferences, a lack of supply, and restrictions on land use. While the market remains strong, these factors are creating new challenges for buyers and sellers alike. It will be interesting to see how the market continues to evolve in the coming years and whether policymakers will take steps to address some of these challenges.