BTAworks on January 27, 2016, released the latest results its work charting and mapping the total value changes in single family (SF) properties in the City of Vancouver at a citywide level.
“In 2016, the $1 million line for single family homes has effectively disappeared in the City of Vancouver. From the 2016 Assessment, 91% of all single family properties in the city have total assessment over $1 million compared to 65% in 2015.” (See 2015 and 2016 above, in that order.) Below are some excerpts, but please visit BTAworks online for the full report:
- Total Assessment refers to the total value of land and “improvement” which is typically the building(s) on the land. Given the data latency between assessment day as of July 1, 2015 to data release to current market conditions, there is a likelihood that this percentage has increased.
- …. A reminder to readers why $1 million threshold was chosen is both the cultural significance and touchstone of $1 million in Canadian culture as significated here and also the price threshold that some realtors such as Sotheby’s International define as “luxury real estate”.
- … Please note that portions of neighborhoods like Shaughnessy, Point Grey, and Kitsilano were excluded in the study as they were not RS zoned, but RM (Multiple Family) zoned or occupy a special historic zoning in the case of parts of Shaughnessy.
- … There are a number of demand and supply reasons for the progression of the $1 million line in Vancouver. Some supply side reasons include the decades-long redefinition and allowance of single family homes by the City from one unit to two and three units and the constrained stock of single family homes in the City of Vancouver and lack of adequate and affordable housing types for families with children in the general. It is important to note that many properties in the west/southwest corner of the city have tended to be larger than other single family parcels in other parts of the City.
- … On the demand side, the low cost of borrowing over the last decade, the effect of global capital entering the residential market of the City of Vancouver and Metro Vancouver, a growing City population, speculative purchase behavior, a cultural and financial predisposition/obsession to home ownership versus renting and generational wealth transfer have all shaped the values of residential property. It is a combination and compounding alignment of these factors and others that have likely produced the value assessment escalation patterns in the City of Vancouver.
- Beyond the truths behind the growth of Single Family Home values in the City of Vancouver, the economic, social, and cultural consequences in this environment of housing unaffordability has implications for the years and decades to come.
- …It is worth stating again that previous studies are not directly comparable to this current $1 million line study.