Housing Shortages and Immigration Booms Are Colliding
On today’s Big Take podcast: What happens when rapid immigration meets slow housing production.
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On today’s Big Take podcast: What happens when rapid immigration meets slow housing production.
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Apr 16, 2019
Bloomberg News
,(Bloomberg) -- Vancouver’s housing market is buckling under a slew of taxes and regulations introduced since 2016 to tame years of relentless growth that made the city the most unaffordable on the continent.
The high end felt the impact first and has been the hardest hit: prices in West Vancouver, Canada’s richest neighborhood, are down 17 percent from their 2016 peak. The slowdown is now broadening: home sales in March were the weakest since the financial crisis and benchmark prices fell 8.5 percent from their record last June.
Read More: College Kids Are Living Like Kings in Vancouver’s Empty Mansions
It’s become more costly to both buy and own expensive homes, particularly for non-resident investors and foreigners. To get a sense of the impact from the municipal, provincial and federal measures, take as a hypothetical example, the province’s most valuable property: the C$73.12 million ($55 million) house belonging to Vancouver-based Lululemon Athletica Inc. founder Chip Wilson. A foreign purchaser of the home who leaves the property empty for much of the year would end up paying as much as C$20.8 million in taxes as follows:
Taxes on purchase:
Ownership taxes:
Additional government moves:
To contact the author of this story: Natalie Obiko Pearson in Vancouver at npearson7@bloomberg.net
To contact the editor responsible for this story: Jacqueline Thorpe at jthorpe23@bloomberg.net, Debarati Roy
©2019 Bloomberg L.P.