Photo: James Bombales
In Metro Vancouver, the amount of single-family homes valued at over $1 million has broken a new record.
As of July 1, 2017, 73 per cent of single-family homes in the region were over $1 million, up from 66 per cent in 2017, according to an analysis of the 2018 BC property assessment by Andy Yan, director of The City Program at Simon Fraser University.
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The percentage of $1 million-plus detached homes in 2018 has surged from 23 per cent in 2014.
“Almost three quarters of single-detached homes in Metropolitan Vancouver are now over a million dollars, as opposed to let’s say 10 years ago, it used to be isolated to a few pockets in the region,” Yan tells BuzzBuzzNews.
Image: Andy Yan
Yan’s analysis, released on Monday, uses data from the 2018 BC property assessment which reflects the market value of a property as of July 1, 2017.
The analysis includes maps of total assessment values for single-family homes in the region between 2014 to 2017.
Focusing on Metro Vancouver, Yan compiled the data in a map to reflect the amount of $1 million-plus homes in the region compared to homes valued below the million dollar mark.
For 2018, the map is a sea of red, as the colour represents all luxury single-family homes in the region. Homes under $1 million are in blue, barely standing out on the map.
Although there are homes under $1 million in the region, Yan says when transportation and childcare costs are factored in, total affordability for these homes surpass the $1 million dollar mark.
Image: Andy Yan
What surprised Yan about 2018’s data was the speed for which homes valued at over a million dollars have sprawled out into the “former suburbs of the City of Vancouver” and into other parts of the region.
When broken down by municipality, the University Endowment Lands, an area west of the City of Vancouver, has the largest percentage of $1 million-plus single family homes with 99.8 per cent. The City of Vancouver and the City of North Vancouver are tied for second, both at 99.4 per cent.
As for why affordability continues to erode in the region, the Simon Fraser University professor says it comes down to supply and demand.
“It’s really the challenges of limited supply for those on local income for housing choices coupled with aspects of demand, whether that be global capital to speculation to flipping. All of which have an effect towards housing values,” says Yan.