It may be a bold statement, but the facts show that there is a tight supply of existing residential and commercial industrial properties and available land for development. If you look at satellite imagery of the Greater Vancouver Regional District (GVRD) and look at all the structures (both residential and commercial), you will see the Pacific Ocean to the west and mountains to the north and east. Most empty spots are protected parks and farm land in the Agricultural Land Commission (ALC). There is residential building progressing up some of the perimeter mountains but it is much more costly to build as most of the coastal mountains are too steep for it to be financially viable to build on the mountains.
The geographic makeup of the GVRD restricts expansion so it creates upward pricing pressure and most new developments are actually redevelopments of existing properties instead of new building on raw land.
Affordable housing is such a problem in BC and all of Canada that it’s a major election issue. A key election issue in the 2021 Federal Election is on the increasing cost of living for Canadians and housing is at the top of our living expenses. Most provincial and municipal governments including Northern communities also discuss it regularly. Developers in multiple municipalities will get increased density for condo projects if affordable units are included into the development mix.
Canada lags the G7 in per capita housing and Vancouver is in the number one spot as the most expensive city to buy a home in all of North America with Toronto coming in 2nd and Hamilton 3rd. Canada takes five of the top ten spots in North America!
There will be ups and downs in the residential market but with increased population growth, a chronic supply shortage of existing housing stock, and a lack of available land for new projects in the GVRD, these constraints will continue to keep the prices high and vacancies low.`