Prices of houses in Vancouver have more than doubled in the past few years. It is extremely difficult for the average working class to afford a house nowadays. Have you ever wondered why?
Here’s why: the Chinese economy had rebounded quickly after the global recession. The middle class is expanding and the rich people are getting richer. The problem is that they need to spend those money. The Chinese stock market is like a roller-coaster ride so people are trying to avoid it. The government had advised the public not to invest in real estate because the housing market is a mess. Additionally, the rich are looking for good places to live in when they retired or send to kids to for better education.
Vancouver has been one of the popular choices for rich Chinese to relocate the family for better living. In recent years, they started to buy up large qualities of luxury houses in Vancouver West and Richmond. When the demand is high and supply is limited, you get sky high prices. Local Vancouverites can’t afford to buy those high end houses anymore, so they started buying at nearby cities such as Burnaby, North Vancouver, and New Westminster. This phenomenon helped boost prices up for the rest of the Lower Mainland.
Until we get more land to build more houses, prices will remain high and the rest of us will still not be able to afford to buy houses in Vancouver.