21 May, 2015

Vancouver real estate prices pushing millennials to leave city: report

 

The rising cost of home ownership in Metro Vancouver could see a migration of highly mobile millennials away from the region, a report released by Vancity credit union suggests.

The report argues that the continued rise in the area's housing market is not being mitigated by salaries, leaving a growing affordability gap for the majority of professions.
Identifying owning their own home as a goal for up to 93 per cent of millennials (those born between 1980 and 2000), Vancity predicts a mass migration away from Metro Vancouver, and a subsequent labour crisis for the area.
$78K salary now required
Currently, on average, a family household income needs to be $123,000 (in a dual-income household, a salary of $78,088 each) to maintain the average Metro Vancouver mortgage, far higher than many professionals in much-needed occupations make.
And, with house prices projected to rise 4.87 per cent year-on-year, and salaries growing between 0.6 and 3.2 per cent year-on-year, the majority of those working in what Vancity regards as 'in-demand' jobs, will be priced out of the housing market, with even the best-paying jobs unable to keep up.
Letting go of the dream?
"By 2025, 85 of 88 in-demand jobs will be unable to afford to live in Metro Vancouver," the report predicts.
"Only those individuals working as senior business managers, senior construction managers and engineering managers will be able to maintain affordable housing."
That effectively leaves those in other "in-demand' and essential professions — health workers, emergency service workers, educators and even lawyers — unable to afford the average mortgage.
Earlier this week, Vancouver real estate consultant, Bob Rennie said it was time for young Vancouverites to let go of their dream of owning a single-family detached home in the city.