CMHC Report Finds Lack Of Supply Main Cause Of Unaffordable Housing

CMHC Report Finds Lack Of Supply Main Cause Of Unaffordable Housing

Wednesday, May 11, 2022

At a glance (1 minute read)

  • A recent CMHC report determined housing supply is the main factor behind unaffordability in Canada.

Canada’s housing supply shortage continues to be the main factor contributing to housing unaffordability, according to new research from Canada Mortgage and Housing (CMHC).

The Housing Supply Report provides insights and analysis on new housing supply in Canada’s six largest Census Metropolitan Areas (CMAs).

Key highlights – Vancouver

  • Multi-family development accounted for more than 85 per cent of new construction in Metro Vancouver in 2021. Much of this construction concentrated in specific areas near transit.
  • The Vancouver region continues to experiment with innovative alternate housing forms to intensify the use of its limited and expensive land area.
  • These innovations, along with further densification, are much needed given the significant supply gaps that Vancouver faces now and in the future.
  • Secondary suites and laneway homes are examples of housing forms built in Vancouver that could be replicated in other Canadian cities to diversify their supply of rental housing.

Upcoming reports

The Housing Supply Report is the first of a series of publications to be released during 2022 and 2023 addressing supply.

Upcoming reports will provide analysis on the magnitude of current and future supply gaps.

Read the Housing Supply Report (Opens 41-page PDF)

 

Credit to:  CMHC, May 2022

Home Buyer Demand in Metro Vancouver* Returned To More Historically Typical Levels in April

Home Buyer Demand in Metro Vancouver* Returned To More Historically Typical Levels in April

VANCOUVER, BC – May 3, 2022 – Home buyer demand in Metro Vancouver* returned to more historically typical levels in April.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,232 in April 2022, a 34.1 per cent decrease from the 4,908 sales recorded in April 2021, and a 25.6 per cent decrease from the 4,344 homes sold in March 2022.

Last month’s sales were 1.5 per cent above the 10-year April sales average.

“So far this spring, we’ve seen home sales ease down from the record-breaking pace of the last year,” Daniel John, REBGV Chair said. “While a small sample size, the return to a more traditional pace of home sales that we’ve experienced over the last two months provides hopeful home buyers more time to make decisions, secure financing and perform other due diligence such as home inspections.”

There were 6,107 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2022. This represents a 23.1 per cent decrease compared to the 7,938 homes listed in April 2021 and an 8.5 per cent decrease compared to March 2022 when 6,673 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,796, a 14.1 per cent decrease compared to April 2021 (10,245) and a 15.3 per cent increase compared to March 2022 (7,628).

“With interest rates climbing and the total inventory of homes for sale inching higher, it’s important to work with your local Realtor to understand how these factors could affect your home buying or selling situation,” John said.

For all property types, the sales-to-active listings ratio for April 2022 is 36.7 per cent. By property type, the ratio is 25.3 per cent for detached homes, 47.1 per cent for townhomes, and 45 per cent for apartments.

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,374,500. This represents an 18.9 per cent increase over April 2021 and a one per cent increase compared to March 2022.

Sales of detached homes in April 2022 reached 962, a 41.9 per cent decrease from the 1,655 detached sales recorded in April 2021. The benchmark price for a detached home is $2,139,200. This represents a 20.8 per cent increase from April 2021 and a one per cent increase compared to March 2022.

Sales of apartment homes reached 1,692 in April 2022, a 26.1 per cent decrease compared to the 2,289 sales in April 2021. The benchmark price of an apartment home is $844,700. This represents a 16 per cent increase from April 2021 and a 1.1 per cent increase compared to March 2022.

Attached home sales in April 2022 totalled 578, a 40 per cent decrease compared to the 964 sales in April 2021. The benchmark price of an attached home is $1,150,500. This represents a 25 per cent increase from April 2021 and a 1.1 per cent increase compared to March 2022.

*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

The real estate industry is a key economic driver in British Columbia. In 2021, 43,999 homes changed ownership in the Board’s area, generating $2.98 billion in economic spin-off activity and an estimated 20,942 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $53.4 billion in 2021.

The Real Estate Board of Greater Vancouver is an association representing more than 14,000 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

Link: https://www.rebgv.ca/content/rebgv/en/Marketing-Information-and-Statistics/residential-statistics/media-stats-package/2022/2022-04-media-stats-package.html

Credit to:  Real Estate Board of Greater Vancouver

Calmer Than Last Spring’s Record Pace, Metro Vancouver Home Buyer Demand Remains Elevated

Calmer Than Last Spring’s Record Pace, Metro Vancouver Home Buyer Demand Remains Elevated

While down from last year’s record numbers, home sale activity in Metro Vancouver’s housing market remained elevated in March.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 4,344 in March 2022, a 23.9 per cent decrease from the 5,708 sales recorded in March 2021, and a 26.9 per cent increase from the 3,424 homes sold in February 2022.

Last month’s sales were 25.5 per cent above the 10-year March sales average.

“March of 2021 was the highest selling month in our history. This year’s activity, while still elevated, is happening at a calmer pace than we experienced 12 months ago,” Daniel John, REBGV Chair said. “Home buyers are keeping a close eye on rising interest rates, hoping to make a move before their locked-in rates expire.”

There were 6,673 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in March 2022. This represents a 19.5 per cent decrease compared to the 8,287 homes listed in March 2021 and a 22 per cent increase compared to February 2022 when 5,471 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 7,628, a 16.6 per cent decrease compared to March 2021 (9,145) and a 13.1 per cent increase compared to February 2022 (6,742).

“We’re still seeing upward pressure on prices across all housing categories in the region. Lack of supply is driving this pressure,” John said. “The number of homes listed for sale on our MLS® system today is less than half of what’s needed to shift the market into balanced territory.”

For all property types, the sales-to-active listings ratio for March 2022 is 56.9 per cent. By property type, the ratio is 38.8 per cent for detached homes, 73.3 per cent for townhomes, and 70.3 per cent for apartments.

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,360,500. This represents a 20.7 per cent increase over March 2021 and a 3.6 per cent increase compared to February 2022.

Sales of detached homes in March 2022 reached 1,291, a 34.3 per cent decrease from the 1,965 detached sales recorded in March 2021. The benchmark price for a detached home is $2,118,600. This represents a 23.4 per cent increase from March 2021 and a 3.6 per cent increase compared to February 2022.

Sales of apartment homes reached 2,310 in March 2022, a 14.3 per cent decrease compared to the 2,697 sales in March 2021. The benchmark price of an apartment home is $835,500. This represents a 28.1 per cent increase from March 2021 and a 4.4 per cent increase compared to February 2022.

Attached home sales in March 2022 totalled 743, a 29.0 per cent decrease compared to the 1,046 sales in March 2021. The benchmark price of an attached home is $1,138,300. This represents a 28.1 per cent increase from March 2021 and a 4.4 per cent increase compared to February 2022.

 

  • Credit to: Real Estate Board of Greater Vancouver, April 2022

Back to work(place): As employers beckon, telecommuters grow more entrenched at home

Back to work(place): As employers beckon, telecommuters grow more entrenched at home

March 23, 2022 – With work-from-home orders a thing of the past, Canadian employers are getting more serious about calling their employees back to the office.

Banks have “led the pack”. CIBC brought employees back starting this week as part of a hybrid model, while last week HSBC opened two new offices in Vancouver and Toronto with 50 per cent capacity.

A new study from the non-profit Angus Reid Institute, in partnership with the Canadian Broadcasting Corporation, finds workers from home reluctant to return. More than half (56%) of those currently working from home say they would look for a new job if they were asked to return to the office, including almost one-quarter (23%) who say they would quit on the spot.

This is a marked shift of the attitudes of Canadians working from home from last summer. Then, two-in-five (39%) said they would roll with it and return full time without complaints. Now three-in-ten (29%) say the same.

Overall, Canadians are more likely to say the work from home experience has not hurt their productivity – four-in-five say it is ‘good’ or ‘great’ – though they are more split when it comes to its effect on their connections with colleagues. Half say the digital connection with their workmates is ‘good’ or ‘great’; half say it is ‘challenging’ or ‘awful’. As for the work itself, three-in-five (59%) say they’ve had no trouble staying in the loop on projects, while two-in-five (41%) say that was a struggle.

However, perhaps it is the non-work considerations that are the more significant reasons workers from home are less than enthused to return to the office full time. Canadians who work from home are more likely than those who don’t to say their work/life balance (35% vs. 21%), relationship with their spouse (32% vs 21%) and their life overall (30% vs 18%) have improved over the course of the pandemic.

The great home-office reorganization brought on by the pandemic wasn’t the only effect COVID-19 had on the job market. Public health restrictions forced many businesses to close, and many Canadians lost their jobs. More than one-third of Canadians (35%) say they left or quit their job during the pandemic. That includes 14 per cent who quit, 12 per cent who lost their job and one-in-ten (9%) who retired or took a time out from the workforce

Many who were forced out of their position, or who stayed on with lower pay or fewer hours, are still feeling the financial and mental health effects. Three-in-ten (30%) of those who lost their job or lost hours during the pandemic say their mental health is ‘a lot’ worse than two years ago. That’s double the number of those who stayed at the same job with no change or a promotion who say the same.

More Key Findings:

  • Three-in-five (58%) Canadians say their personal finances have come out of the other side of the pandemic in ‘good’ shape. Three-in-ten say instead they are in ‘bad’ or ‘terrible’ shape financially. More than half (54%) of those who lost their job or lost hours during the pandemic are in the latter group.
  • Canadians over the age of 54 are more attached than younger age groups to their full-time home office life. Two-in-five (42%) prefer to work from home entirely, compared to three-in-ten (29%) 18- to 34-year-olds who say the same. Younger Canadians are most likely to prefer a hybrid of working in the office and working from home.
  • That said, three-in-ten (29%) of 18- to 34-year-olds who prefer to work from home say they would quit immediately if asked to return to the office full time, the most of any age group.

 

About ARI

The Angus Reid Institute (ARI) was founded in October 2014 by pollster and sociologist, Dr. Angus Reid. ARI is a national, not-for-profit, non-partisan public opinion research foundation established to advance education by commissioning, conducting and disseminating to the public accessible and impartial statistical data, research and policy analysis on economics, political science, philanthropy, public administration, domestic and international affairs and other socio-economic issues of importance to Canada and its world.

 

Part One: The COVID and work experience

The COVID-19 pandemic created significant upheaval in the job market. When the pandemic initially arrived in March 2020, public health restrictions closed businesses, caused lay-offs and pushed office workers into a new life working from home. When the virus ebbed, businesses and offices reopened. Still, many Canadians didn’t return to the workplace they left from. Last year, businesses struggled to hire, with some economists blaming too-generous government benefit programs, and others speculating that the pandemic had exacerbated a pre-pandemic labour shortage.

 

More than one-third of Canadians left or quit their job during pandemic

Two-thirds of Canadians (65%) who were working at the beginning of the pandemic report that they’re still working the same job they were two years ago. For the rest of March 2020 workforce, 14 per cent say they quit their job, 12 per cent say they lost their job, while one-in-ten (9%) retired or decided to temporarily step out of the job market.

While one-quarter (24%) of Canadians say they both held onto their pre-pandemic job and got a promotion or raise, one-third (33%) say their job materially stayed the same and about one-in-ten (8%) had either their hours or pay reduced.

For the one-quarter of Canadians who either voluntarily – or not – left their job during the pandemic, most (20% of the 26%) say they found a new job – half in a new field, half in a different one. The remaining six per cent of that group report still looking for work or giving up on looking entirely:

Some used the time off from their job for self-improvement. One-in-five (22%) of people who quit or lost their job during the pandemic say they went back to school or did professional training (see detailed tables).

For others, it was a more stressful time. Two-thirds (63%) of those who lost hours or lost their job during the pandemic say they received employment insurance or the Canada Emergency Response Benefit (CERB). (See detailed tables).

For that group, two-in-five (42%) say the government assistance was a ‘vital’ lifeline to get them through the pandemic and a further three-in-ten (29%) say the funds helped a lot. One-in-five (18%) felt the programs only offered a slight amount of assistance. A handful, one-in-ten (9%), felt they needed more support:

 

How Canadians feel the pandemic affected their finances

The two-year anniversary of the pandemic offers a milestone for Canadians to assess the overall impact on their lives after 24 months of disruption. This is the fifth study in a series evaluating how Canadians reflect on the two years of COVID-19 conducted in partnership between ARI and the CBC.

 

Part Two: Home office life

While the initial wave of COVID-19 caused an immediate effect on the job market, the pandemic also caused another seismic shift in the economy – the move to the home office – the aftershocks of which will continue for long after the virus is no longer a global threat. Statistics Canada estimated that four per cent of employees did most of their work from home in 2016. At times during the pandemic, that was as high as 40 per cent.

With public health restrictions ending or phasing out across the country, more Canadians have returned to the office. Still, two-in-five (41%) Canadians report they or someone else in their household is working from home, including one-in-five (22%) who say they themselves are:

 

Half of Canadians under 55 say someone in their household is working from home (see detailed tables). The splits vary regionally. Ontarians and Quebecers are much more likely to report someone in their household is working from home. In Atlantic Canada, Saskatchewan and Manitoba, instead seven-in-ten say no one in their home is:

Many jobs can’t be done from home, including service sector and retail jobs that are often lower paying. With that in mind, Canadians living in lower income households are much less likely to say someone is working from home in their household.

 

Canadians report high work productivity, more divided on workplace connections

Despite a myriad of potential distractions – among them, kids and pandemic pets – few (22%) Canadians report their work productivity suffers at home.

Related: Many (especially those with children) got new pets during the pandemic

Indeed, those with kids under 18 in the household are as likely to say their work productivity from home was ‘good’ or ‘great’ (78%) as those without (78%, see detailed tables).

However, it is women aged 18- to 34-years-old, who are more likely to report their work productivity was ‘challenging’ or ‘awful’ at home – one-in-three (32%) say this. Among women older than that, at least half say it was instead ‘great’:

*Smaller sample size, interpret with caution

Canadians are more divided on the effect working from home has on office cohesion. Half of Canadians say they felt solid connections with their colleagues; half disagree.

Men are more likely than women to be in the latter group, and those in their early career more so than older Canadians. Approaching three-in-five (57%) 18- to 34-year-old men say feeling connected to their colleagues from their home office is ‘challenging’ or ‘awful’:

*Smaller sample size, interpret with caution

Canadians are more likely to feel like they were connected to their work, but still two-in-five (41%) say they felt out of the loop when it came to work projects. Women are more likely than men to say instead that that aspect of working from home was ‘great’. One-quarter of women older than 34 say this, double the rate of men of any age:

*Smaller sample size, interpret with caution

Overall, Canadians who work from home are more positive than those who don’t about the effect of the pandemic on many aspects of their life. They are more likely to say their work/life balance, relationships with friends, family and their partner, their physical health, life overall, sense of optimism and mental health improved over last two years than those who say no one in their household works from home.

Still, it’s worth noting a majority of both those who work from home and those who don’t say their mental health is worse than it was in March 2020 (see detailed tables).

 

Part Three: Will workers answer the call back to the office?

Those still working from home are more likely to be attached to their arrangement than eager to return to the office. Four-in-five (79%) Canadians currently working from home prefer to be doing it all or most of the time. Few – four per cent – say they’d actually like to be in the office full time.

It’s older Canadians who are more attached to their work from home life. At least two-in-five of Canadians older than 54 say they prefer to work from home all the time. Comparatively, three-in-ten 18- to 34-year-old men (27%) and women (31%) say the same. Instead, that age group is more likely to prefer a hybrid model split between the home and the office, with more leaning towards a bigger share at home:

*Smaller sample size, interpret with caution

The pull back to the office has begun in many industries. Several Canadian banks began to bring back workers this month. Many workers will be faced with a choice: answer the call or try to find a different job.

Three-in-ten say they’d return to the office full time if their employer demanded it. One-third say they would return but would keep an eye on the job boards. Approaching one-quarter (23%) say they would quit immediately to find a new job.

Younger Canadians are most likely to say they would quit immediately. Three-in-ten (29%) of those aged 18- to 34-years-old say they would start looking for another job right away. Canadians aged 35- to 54-years-old are more likely to take a gradual approach – two-in-five (39%) say they’d return, but would start looking for another job at the same time:

Overall, this marks a shift in attitude from last summer. Then, two-in-five Canadians working from home who preferred it stay that way (39%) said they would roll with it and come back to the office full time, while 44 per cent would look for a new job gradually or immediately.

Compared to the summer, women are much less willing to return to the office full time if their employer demanded it. In August, 43 per cent said they would roll with it. Now, 28 per cent say the same. For men, that figure has declined from 35 per cent to 30 per cent.

 

Survey Methodology:

The Angus Reid Institute conducted an online survey from March 1 – 4, 2022 among a representative randomized sample of 2,550 Canadian adults who are members of Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 2 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding.

The survey was conducted in partnership with CBC and paid for jointly by ARI and CBC.

Credit to:  Angus Reid Institute, March 22, 2022

 

New Program Matches Buyers to Purchase Homes Together

New Program Matches Buyers to Purchase Homes Together

High housing costs lead to a matchmaking service for joint ownership

Peter Mitham,   Mar 18, 2022

A year ago, Elizabeth Wilcox thought she would be priced out of the Vancouver housing market. With prices rising after the initial restrictions associated with COVID-19 lifted, she and her husband found themselves scrambling to find anything within their budget.

But working with Noam Dolgin, a real estate agent and founder of CoHo BC, she and her husband were partnered with two others to purchase a property in East Vancouver. It’s now home to the four of them and their three children in a deal structured and arranged by Dolgin and real estate lawyer Richard Bell.

Wilcox is now sharing her experience with others as staff matchmaker at CoHo BC, bringing together strangers keen to pursue collaborative home ownership and providing the resources needed to respect each party’s interests.

“We found there was a lot of interest from those who didn’t have partners, who wanted to find partners to be guided through the process, so we added matchmaking services in what we do,” Dolgin said. “We work with professionals – real estate agents and lawyers and other folks – who have years of experience with people co-buying to guide people through the process so they’re not making bad deals, they’re not forgetting important pieces, they’re not making bad legal agreements.”

But matchmaking isn’t just for individuals seeking a home. CoHo BC’s largest deal to date closed in January when seven owner-occupiers partnered with investors to purchase eight cottages in Horseshoe Bay for $3.7 million.

The cottages – each between 400 and 700 square feet – sit on three lots, which could not be subdivided. CoHo BC assembled an ownership group drawn from existing West Vancouver residents and Bell recommended the creation of a holding company to create a single ownership entity to facilitate financing.

But even then the complex nature of the purchase saw the lender stipulate a 50 per cent loan to value ratio, requiring the involvement of outside investors.

Dolgin contacted Alan Carpenter of Langley, who lives in a co-housing community himself, knowing he would be open to the idea.

“They were basically matchmaking to connect people of similar values,” he said. “We both had this value of a community-led housing idea.”

With less than a month to go until the closing date, Carpenter worked with the buyers to assemble the final $500,000 to complete the financing arrangements. The result was a deal benefiting everyone, outside investors as well as the occupants who pay rent to themselves through the ownership entity.

“Over the years, as the mortgage gets paid down, the mortgage payments are less, then the rent could be less,” Carpenter explained. “And for the outside investors, the property values are going up, so their position is always getting stronger. The other thing for an outside investor is the people that are living there are taking a different level of care of the place.”

One of the cottages is leased to a long-term resident of the property who also pays rent to the ownership group. However, the owners have agreed to charge a rent that reflects her circumstances, giving her a stable housing arrangement.

“They’re going to keep renting to her at the affordable rate she had before,” Carpenter said. “They come from a different place than a typical investor.”

Dolgin says the arrangement – one of three matchmaking deals CoHo BC has done to date – underscores how co-ownership can work when it’s done right.

“By asking the right questions and having a thorough, deliberative, thoughtful process in advance, you can avoid a lot of conflict down the road,” he said.

Credit to:  Peter Mitham,   Mar 18, 2022

40% of Vancouver’s Generation Z Adults Expect 1st Home to be Co-Owned, Real Estate Survey Suggests

40% of Vancouver’s Generation Z Adults Expect 1st Home to be Co-Owned, Real Estate Survey Suggests

Published: Alyse Kotyk, CTV News Vancouver, March 9, 2022

More than a third of Generation Z adults living in Vancouver expect they’ll co-own their first home with someone else like friends or family, a recent survey suggests.

The Generation Z Report, released by Sotheby’s International Real Estate and the Mustel Group Wednesday, looks at how that age group is preparing for home ownership across the country. It suggests 37 per cent of Canadian Generation Z adults, which included those aged 18 to 28, living in urban areas expect they’ll be able to purchase their first home in less than five years.

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Listings Inch Up, Demand Remains Steady and Price Gains Continue in Metro Vancouver’s Housing Market in February

Listings Inch Up, Demand Remains Steady and Price Gains Continue in Metro Vancouver’s Housing Market in February

The Metro Vancouver* housing market saw steady home sales activity, modest increases in home listings and continued upward trends in pricing in February.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,424 in February 2022, an 8.1 per cent decrease from the 3,727 sales recorded in February 2021, and a 49.8 per cent increase from the 2,285 homes sold in January 2022.

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Low Supply Keeps Upward Pressure On Home Prices Across Metro Vancouver’s Housing Market

Low Supply Keeps Upward Pressure On Home Prices Across Metro Vancouver’s Housing Market

The first month of 2022 saw home sales come down from last year’s record-setting pace, while low supply continued to cause home prices to edge higher across Metro Vancouver*.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,285 in January 2022, a 4.4 per cent decrease from the 2,389 sales recorded in January 2021, and a 15 per cent decrease from the 2,688 homes sold in December 2021.

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Metro Vancouver Home Sales Set A Record In 2021

Metro Vancouver Home Sales Set A Record In 2021

 

Metro Vancouver home sales reached an all-time high in 2021 as housing needs remained a top priority for residents in the second year of the COVID-19 pandemic.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 43,999 in 2021, a 42.2 per cent increase from the 30,944 sales recorded in 2020, a 73.6 per cent increase from the 25,351 homes sold in 2019, and a four per cent increase over the previous all-time sales record of 42,326 set in 2015.

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