Image from Vancouver Province June 3, 2016
The hot Vancouver real estate market has seen dramatic increases in the value of homes that has now extended throughout the lower mainland. You hear of bidding wars and homes selling well over asking prices (some at more than $1 million) or flips being done that double house prices within 2 years).
What you don’t hear a lot about is the impact all this has had on the rental market. Vacancy rates are less than .5%. There are bidding wars taking place in the rental market too. Almost as soon as something is posted it is gone. Unscrupulous landlords are asking for three to 12 months rent in advance when only 1.5 months is legally allowed. Builders are renting tear-down homes that are in deplorable conditions, while they await building permits,and charge atrocious prices (e.g. $2,500 to $3,000) .
Meanwhile 12,000 units sit empty. Investors have invested and let homes and condos sit vacant. House prices have been driven up. Rental prices have been driven up.
I have witnessed the rental crisis firsthand and at 78 I am also victim of it so I understand the hardship others are experiencing and feel deeply for them. I’ve watched resources disappear while trying to find housing and survive while being homeless. It takes funds to leave too, which is a catch 22.
I have spoken about the market crashing in past prophecies. I foretell that the housing market in Vancouver will crash this year. By December 2016, Vancouver will not be the same place. Renters will benefit from the declining values but it will be too late for many of us.
