With the average purchase price in Vancouver rising to $1.6 million, more people are being pushed out of the market. As a result, the rental demand is increasing dramatically as fewer people can qualify for or afford a mortgage.
Those interested in real estate investing (with a 20% down payment saved) should make the leap today. You can create an abundant and secure financial future for you and your family with an investment property.
Learn more about why you should invest in Vancouver real estate in our blog. We discuss why it is a great place to invest, what the investment opportunities are like, and what you can expect from the market.
The Perfect Place To Invest
Vancouver is a bustling place that promises stunning views, top amenities, and a culturally diverse population. Currently, 13% of Canada’s population lives in British Columbia with nearly half residing in Greater Vancouver.
The city offers moderate temperature seasons all year long, making it a desirable place for anyone looking to escape Canada’s harsh winters. The comfortable climate also plays a role in activities; residents can enjoy the stunning British Columbia landscape and all it has to offer all year round.
Many people either purchase a house or rent a rental property in Vancouver because of all it has to offer.
Fun Facts About Vancouver:
- It’s one of the cleanest cities in the world
- It boasts close proximity to the Canada-America border
- It’s ranked as the third most livable place in the world
- Downtown Vancouver is 65% residential
Why Invest In The Vancouver Real Estate Market
Need For Housing
According to the Canada Mortgage and Housing Corporation’s Housing Market Information Portal, the vacancy rate in the Vancouver area sits a 1.2%. Some of the areas with the lowest vacancy rates are North Vancouver, Maple Ridge, and Kitsilano.
Achieve Your Financial Goals
Every first-time investor is afraid to take the leap and purchase a property. While you may not be getting the best deals for a property, the value is immense. Almost all property types perform well in Vancouver whether it’s residential or commercial real estate. You can access a good deal of equity or sell and benefit from the yearly price gains.
Consistent Cash Flow
The initial purchase price of a property can be daunting. But, if you have the money saved for a 20% initial payment, you will not need much else. Rental income will provide a consistent cash flow to cover your mortgage payments, utilities, and other expenses.
Vancouver’s Real Estate Market: 2022 Outlook
Residential Real Estate
Much like the rest of Canada, Vancouver’s market experienced a shortage of available properties in 2020 and 2021. The number of homebuyers far outweighed the number of sellers, driving up the cost of properties across the West Coast.
Due to the persistent demand for new listings and the shortage of listings, the benchmark purchase price has risen 36% for detached, 28% for attached, and 13% for apartments since March 2020. Thankfully, according to Keith Stewart, an economist with the Real Estate Board of Greater Vancouver (REBGV), “home price growth will come back toward longer-term averages as rising interest rates and prices squeeze some potential buyers out of the market.” Less competition to buy real estate means fewer bidding wars and far less inflated costs.
However, Stewart notes that the shortage of listings will remain for 18-24 months even the number of buyers and sellers returns to normal levels. The deficit has been ongoing for the past few years and the Vancouver housing market will take some time to rebound. As a result, real estate investors can still expect home prices to rise.
The REBGV expects Metro Vancouver housing costs will rise by an average of 9% in 2022. Detached properties will have a 13% increase, attached homes 9.5%, and apartments 8%.
Commercial Real Estate
From the business district on the west side to the industrial area in the lower mainland, the commercial real estate markets have plenty of opportunities for investors.
The office market in the downtown core has fallen as more organizations started to implement work from home during the COVID-19 pandemic. While there may be good deals for office space right now, realtors are unsure whether the markets will rebound completely. Investing in an office may not be a smart investment decision at the moment.
Rather than invest in an office, consider industrial. Industrial real estate has been strengthened over the past year thanks to the growth of e-commerce. More space is needed to host products and manufacturers as industrial availability decreases to 2.8% in late 2020. Industrial development is an excellent real estate investment because of its increasing demand, high returns, and triple net leases.
