Photo by Michael Geller, Vancouver Courier
Truth or clickbait: Is the housing crisis in Vancouver really over? Nope, not for the many people it has negatively impacted, and will continue to do so.
It took some time to get to this crisis, but it may not take as long to get out. Maybe it already has. Demand-side parameters — taxes, interest rates, mortgage requirements, investment sources, prices, expectations, attitudes, politics — are all shifting simultaneously. That means, on the supply side, the implications of this chart are profound:
Past 12-month Starts, Completion (CMHC), and Annual Household Formation – Metro Vancouver 1990-2018
Housing starts and completions have never been higher over the last 28 years. And household formations have dropped.
Combined with all those other changing parameters, I think it’s safe to say that the housing crisis as we knew it is already over. Civic candidates are basing their platforms and arguments on the circumstances of the past, proposing changes to alter conditions that have already changed or are in the process of doing so, perhaps dramatically.
But I could be wrong.