In the last decade, residential real estate in Vancouver has been in short supply, with vacancy rates of about one percent or less. In response to this high level of demand, rental rates have been steadily climbing, from less than 1,000 Canadian dollars per month on average in 2009 to nearly 1,400 dollars as of 2018.
Between 2016 and 2018, over 7,500 luxury homes valued between one and two million Canadian dollars were sold in Vancouver. In 2016 alone, 573 luxury homes valued at over four million Canadian dollars were sold. On average, a luxury home in Vancouver valued between one and two million Canadian dollars spends about 26 days on the market before being sold, with about 37 percent being sold over list price in the first half of 2017.
Why is housing so expensive in Vancouver? When locals are asked this question, the top response is that foreign investors are to blame, followed by wealthy domestic investors. Only about 35 percent of respondents believe that the high housing prices in the Vancouver metropolitan area are due to the fact that it is a desirable place to live. Public opinion on the current housing price situation in Vancouver is very negative, with a high share of Canadians believing that the high housing prices harm Vancouver residents. This sentiment is felt most strongly among young Canadians, who are more likely to struggle to find affordable housing compared to any other age group . However, a 2018 survey found that about 36 percent of Canadians believe that the high housing prices in Vancouver will not last long, and that prices will fall by 30 percent or more in the future. Only about 15 percent of respondents believe that the real estate prices in Vancouver will keep climbing.