New research shows the value of homes in Canada is up by 15% since 2000
Vancouver, B.C. — As house prices in Vancouver have jumped by an average of 15% per year, the Canadian economy is seeing a rebound, according to new research released by the Fraser Institute.
The study found that the value per unit of land in Canada rose by just 0.2% between 2003 and 2017.
That’s about 15% of the growth in value per hectare since 2003.
But it also shows that the average home in Vancouver has more than tripled in value in the past 15 years, from $1,934 in 2000 to $2,836 in 2017.
The Fraser Institute, a think-tank, said that a lot of that growth can be attributed to foreign buyers, but they’re also contributing to the rapid rise in home prices.
The report shows that more than 80% of home sales in Vancouver between 2005 and 2017 were to foreign nationals.
The report also says that foreign buyers accounted for a significant portion of all home sales, with a majority of them buying homes.
The new report comes as Vancouver’s economy is slowly improving, as a number of new housing projects are under construction.
But the report also found that there has been a steady rise in the number of Vancouverites without a home, from 3.3 million in 2003 to 8.7 million in 2017, with the number going up by about 50% between 2006 and 2017.
“There are more and more Canadians living in cities who don’t have the means to live in a home,” said Fraser Institute co-author Bruce Porter.
“If they’re not in a place, they’re at risk of eviction.”
A lot of people are getting priced out of the market, which is creating a lot more pressure on Vancouver, Porter said.
“This is the fastest growing city in Canada right now, so it’s a real opportunity for the private sector to really push into that market,” he said.
Porter said the province has been working with municipalities and the federal government to reduce the number and the speed of the new development, but said the real challenge for municipalities is keeping up with a housing market that is expected to grow by another 5% by 2021.
The Canadian Taxpayers Federation also released a report this week, which found that in Vancouver, the tax burden on taxpayers is at an all-time high.