The future of tenancy seems to be a strong likelihood for myself, along with other young adults in the Vancouver housing market. If the lack of regulation and involvement by the government continues the way it has in recent years, the housing market will continue to be dominated by foreign ownership, vacant homes, and displaced citizens and families who simply cannot afford to own a home in the Lower Mainland. Additionally, this can greatly impact the city’s economy, cultures and overall well-being.
Foreign and local demand for housing has largely outweighed the supply of homes readily available for purchase. Having worked as a secretary for a real estate agent, I have witnessed bidding wars often resulting in offers that were tens of thousands of dollars over asking price. Seeing local first-time buyers lose to foreign investors in these bidding wars was a harsh representation of the overall housing market. This also intimidates many homeowners, scaring them from selling their home in fear that they cannot afford another one, which ultimately brings down the supply of homes.
In basic economic terms, this lack of supply with an overwhelming amount of demand will result in price hikes for homes.
Affordability becomes an issue outside of just being able to purchase a home as well. Additionally, there is the cost of living to consider. Once you have purchased a home, how much of your income is left for food, water, heat and other essentials? How much disposable income does one have after their monthly mortgage payment to consume and feed back into the economy?
That brings us to the next issue, which applies to foreign homeowners who leave their homes vacant and do not offer their home for tenancy. Without actual residents and citizens living here, there is less money to spend on local businesses and companies, which can interrupt or slow the local economy.
As beautiful as this city is and as hard as it would be to leave, many might feel forced to turn to other cities. When citizens choose to move, they are taking their expertise with them, resulting in a brain drain.
The truth is that we as young adults are all concerned about our future in this beautiful city. If prices continue to increase the way they have been, our chances of owning a home are quite bleak. This trend is not new. It is a pattern we have seen and observed for numerous years, yet only recently has the provincial government started to pitch potential regulations.
We have seen how quickly the housing market moves. It is time we see the same urgency from the government.
