Latest news with #B.C.RealEstateAssociation
Yahoo
08-07-2025
- Business
- Yahoo
Metro Vancouver's condo market is slumping. Here are 4 key factors behind the slowdown
After years of soaring prices and new builds, Metro Vancouver's condo market is showing signs of strain with projects stalling, sales declining, and developers hitting pause. Industry experts say it's the result of a "perfect storm" of four major forces converging: high interest rates and softening rental income, reduced foreign capital and lower immigration — all of which have created a challenging environment for both buyers and builders. "[We] are at a breaking point, the industry is doing terribly," said Anne McMullin, CEO of the Urban Development Institute. "It's not just that the industry is struggling; it's our inability to deliver homes that people can afford." Increase in borrowing costs has reduced affordability for buyers and made it more expensive for developers to finance new builds, says McMullin. Just five years ago, mortgage rates were near historic lows, making it relatively affordable for buyers to borrow large sums and invest in real estate. But those rates have climbed significantly, pushing up monthly mortgage payments. WATCH | Some real estate advisors question Surrey's decision to convert condos to rental units: The result is higher "carrying costs" — the total expense of owning a condo, including mortgage payments, property taxes and maintenance fees. The City of Vancouver's 2025 budget includes a 3.9 per cent property tax increase and an 18.2 per cent hike in utility fees, together adding hundreds of dollars to annual expenses. "It costs more to build a unit or a home than the average person in the Lower Mainland can afford," said McMullin. "When it's costing more to build … we see project cancellations and we start to see projects not going ahead." At the same time, condo and rental price growth has stagnated, which means homeowners can no longer count on steady price growth to absorb the costs. According to the latest housing market update from the B.C. Real Estate Association, residential prices in the province in May 2025 were down 4.2 per cent at $959,058 compared to the same time last year, while residential sales were down 13.5 per cent. In Vancouver, average asking rents for a two-bedroom fell from $3,440 in 2024 to $3,170 in 2025, according to the latest figures from Statistics Canada. Though economists expect rates to begin to decline slightly in the second half of the year, persistent inflation risks and ongoing U.S. trade tensions could keep borrowing costs elevated for now. A second factor cooling B.C.'s condo market is the decline in foreign investment, largely due to the federal ban on non-residents purchasing residential property in Canada. Initially enacted in January 2023 under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, the ban was recently extended by two more years and is now set to expire on Jan. 1, 2027. It prohibits foreign commercial enterprises and non-resident individuals from buying homes anywhere in Canada. The federal government says foreign ownership has fuelled worries about Canadians being priced out of housing markets in cities and towns across the country. But for developers, the measure has made it harder to access the capital needed to get projects off the ground. "While the intention is understandable, the current broad-brush form of the ban also limits access to foreign capital that could help builders meet presale thresholds and finance new construction," the Homebuilders Association Vancouver said in a statement. The association has called for a more flexible approach to the policy. The group suggests Canada could look to Australia's model, which allows foreign buyers to invest in new builds under specific conditions, such as requiring the units to be rented out or limiting resale timelines. Another drag on demand is a recent slowdown in population growth. WATCH | Metro Vancouver housing market looking good for buyers: analyst: As of spring 2025, B.C.'s population stood at approximately 5.7 million. But the province recorded a net population decline, with 2,357 fewer residents compared to the previous quarter. The drop comes amid changes in federal immigration policy. Under its 2025–2027 Immigration Levels Plan, the federal government has introduced targets not only for permanent residents but also for temporary residents, which include international students and foreign workers. The plan aims to reduce temporary resident volumes to no more than five per cent of Canada's total population by the end of 2026. The Canadian Mortgage and Housing Corporation says the condo slowdown is likely to persist this year as supply increases outpace demand.
Global News
13-06-2025
- Business
- Global News
Sellers ‘aren't budging' as inventory builds up in tariff-saddled B.C. real estate market
Ongoing uncertainty in global markets is having a homegrown effect on British Columbia's real estate market. Both sales and prices slumped last month, according to data B.C. Real Estate Association — part of a provincewide trend of sluggish sales activity over the last five months, with the priciest markets being hit the hardest. 'We have the highest level of inventory of both newly completed homes and existing homes in about 10 years,' B.C. Real Estate Association Chief Economist Brendon Ogmundson. 4:14 BCREA wants to make short-term rental restrictions less restrictive 'Sellers just aren't really budging. If you look at condo prices in Vancouver versus Toronto, they're down 20 per cent from peak in Toronto, they are down like 5 per cent from peak in Vancouver.' Story continues below advertisement Data supplied by the group showed sales were down 13.5 per cent over May 2024, while the average price of a home slid by 4.2 per cent to $959,058 from just over $1,001,341. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Vancouver Realtor Steve Saretsky said the market has become caught in a 'sort of feedback loop' because people are holding off on big purchases. 'Everyone is marked with uncertainty, worried with the tariff stuff, worried about the prospects of the labour market, are they going to be able to hold down a job,' he said. 'So what we are seeing is a lot of buyer hesitation, and that is allowing inventory to stack up and as the inventory stacks up, that just puts pressure on prices.' At the same time, he said some sellers are still holding out for unrealistic prices. 2:50 Why buying a condo could be cheaper than renting 'Everybody always feels like their house is worth more than it is, and people are always mentally anchored to the last price that sold in the building or the neighbourhood,' he said. Story continues below advertisement Both Saretsky and Ongmundson said they've seen numbers pick up slightly in recent weeks. Ongmundson said that could be linked to the relative lack of noise on the U.S.-Canada trade front. 'There are some signs that perhaps the worst is behind us,' he suggested. 'The quieter it is on the tariff front, the more confidence buyers are going to have.' Ongmundson added that before U.S. President Donald Trump launched his trade war, the province had been expecting a busy year on the real estate market. He said if economic fears calm down, some of that pent-up demand could start to make itself felt in the back half of 2025.
The Province
28-05-2025
- Business
- The Province
B.C. says no to request for more exemptions to short-term rental restrictions
The B.C. Real Estate Association has raised concerns about a lack of space for film workers as well as patients travelling for health care. Housing and Municipal Affairs Minister Ravi Kahlon. The B.C. Real Estate Association is asking the province to grant more exemptions to its short-term rental restrictions, arguing it is hearing from people in the health-care, film and construction sectors that there is a shortage of accommodation for workers in rural and northern communities. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors The association wants to see the province make exemptions on a geographic basis for communities such as Prince George that serve as health-care hubs for surrounding communities. 'In communities across the province, you need a certain stock of available short-term rentals for short-term medical workers,' said Trevor Hargreaves, the association's senior vice-president of government relations, marketing and communications. Hargreaves said people from remote regions being sent to Metro Vancouver also need affordable accommodations, using the example that for people receiving chemotherapy 'it's not particularly viable that you're here paying 90 days worth of hotels at $450 a night.' He said he also wants to see the NDP re-examine restrictions around strata hotels, individual units owned as part of a strata but managed for short-term rentals, and give a sector-wide exemption for the film and TV sector, which relies heavily on transient cast and crew. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The final request from the association is that the province return zoning power to local governments, allowing them to permit short-term rentals in certain neighbourhoods. The calls comes days before the government's deadline of June 2 for platforms such as Airbnb and Vrbo to begin removing illegal listings and as a summer begins to near that Hargreaves expects will see plenty of Canadians travel to B.C. instead of going to the U.S. Provincial Minister of Housing Ravi Kahlon replied almost immediately on Tuesday that he is not considering granting such exemptions as they risk undermining the progress he feels the province is making in bringing affordable housing on line by forcing investors to sell or list their properties as long-term rentals. This advertisement has not loaded yet, but your article continues below. He also said that it is his understanding that the issues of accommodation for health-care workers is not a big problem and is being addressed. 'We know the health authorities have made adjustments to support individuals who need housing for health care-related matters, and so we'll monitor as we go forward,' said Kahlon. 'There hasn't been a major issue at this point. But what we have been seeing is people getting housing for much cheaper than they were paying before, and that's a positive thing.' Prince George councillor Brian Skakun said, however, that he has spoken to a number of doctors and nurses who have been travelling to the city from around B.C., and in some cases even other provinces such as Alberta and Manitoba, and have struggled to find a place to stay. This advertisement has not loaded yet, but your article continues below. He said patients are also having the same problem, with people travelling from surrounding communities to receive health care but then finding that hotel spaces are either unavailable or way too expensive. 'We met with Minister Kahlon directly last year. Premier Eby, I told him the way they are handling it does nothing but create problems for us,' said Skakun. 'These folks that come here do not want to stay in a hotel. They want some sort of setting, that when they get off of a stressful shift, to be able to relax. So just the fact that we might have hotels available doesn't solve the problem.' Nicole Bryant, CEO of the Northern Regional Construction Association, said she hasn't heard many stories of construction workers being unable to find housing, but has witnessed prices going up as the deadline for online platforms to start removing illegal listings nears. This advertisement has not loaded yet, but your article continues below. She said there is potential for the restrictions to cause even further increases in the costs of capital projects in the region as the money required for contractors to house employees rises. 'When you're looking at sending a crew to a community to do work, you're looking at five hotel rooms, as opposed to one short-term rental that people can share,' said Bryant. 'They've already bid on these jobs based on short-term rentals and availability at the time that those jobs were bid. We look at these jobs running sometimes as long as two to three years. And so these costs were estimated a long time ago, and this change could definitely put a dent into the cost for the project and increasing costs for projects and timelines.' alazenby@ Read More Vancouver Canucks Vancouver Canucks News Vancouver Canucks Hockey
Vancouver Sun
28-05-2025
- Business
- Vancouver Sun
B.C. says no to request for more exemptions to short-term rental restrictions
The B.C. Real Estate Association is asking the province to grant more exemptions to its short-term rental restrictions, arguing it is hearing from people in the health-care, film and construction sectors that there is a shortage of accommodation for workers in rural and northern communities. The association wants to see the province make exemptions on a geographic basis for communities such as Prince George that serve as health-care hubs for surrounding communities. 'In communities across the province, you need a certain stock of available short-term rentals for short-term medical workers,' said Trevor Hargreaves, the association's senior vice-president of government relations, marketing and communications. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Hargreaves said people from remote regions being sent to Metro Vancouver also need affordable accommodations, using the example that for people receiving chemotherapy 'it's not particularly viable that you're here paying 90 days worth of hotels at $450 a night.' He said he also wants to see the NDP re-examine restrictions around strata hotels, individual units owned as part of a strata but managed for short-term rentals, and give a sector-wide exemption for the film and TV sector, which relies heavily on transient cast and crew. The final request from the association is that the province return zoning power to local governments, allowing them to permit short-term rentals in certain neighbourhoods. The calls comes days before the government's deadline of June 2 for platforms such as Airbnb and Vrbo to begin removing illegal listings and as a summer begins to near that Hargreaves expects will see plenty of Canadians travel to B.C. instead of going to the U.S. Provincial Minister of Housing Ravi Kahlon replied almost immediately on Tuesday that he is not considering granting such exemptions as they risk undermining the progress he feels the province is making in bringing affordable housing on line by forcing investors to sell or list their properties as long-term rentals. He also said that it is his understanding that the issues of accommodation for health-care workers is not a big problem and is being addressed. 'We know the health authorities have made adjustments to support individuals who need housing for health care-related matters, and so we'll monitor as we go forward,' said Kahlon. 'There hasn't been a major issue at this point. But what we have been seeing is people getting housing for much cheaper than they were paying before, and that's a positive thing.' Prince George councillor Brian Skakun said, however, that he has spoken to a number of doctors and nurses who have been travelling to the city from around B.C., and in some cases even other provinces such as Alberta and Manitoba, and have struggled to find a place to stay. He said patients are also having the same problem, with people travelling from surrounding communities to receive health care but then finding that hotel spaces are either unavailable or way too expensive. 'We met with Minister Kahlon directly last year. Premier Eby, I told him the way they are handling it does nothing but create problems for us,' said Skakun. 'These folks that come here do not want to stay in a hotel. They want some sort of setting, that when they get off of a stressful shift, to be able to relax. So just the fact that we might have hotels available doesn't solve the problem.' Nicole Bryant, CEO of the Northern Regional Construction Association, said she hasn't heard many stories of construction workers being unable to find housing, but has witnessed prices going up as the deadline for online platforms to start removing illegal listings nears. She said there is potential for the restrictions to cause even further increases in the costs of capital projects in the region as the money required for contractors to house employees rises. 'When you're looking at sending a crew to a community to do work, you're looking at five hotel rooms, as opposed to one short-term rental that people can share,' said Bryant. 'They've already bid on these jobs based on short-term rentals and availability at the time that those jobs were bid. We look at these jobs running sometimes as long as two to three years. And so these costs were estimated a long time ago, and this change could definitely put a dent into the cost for the project and increasing costs for projects and timelines.' alazenby@
Global News
27-05-2025
- Business
- Global News
Amid B.C.'s tariff and trade-challenges, short-term rental rules need to change, group says
The B.C. Real Estate Association is calling for changing to the province's short-term rental restrictions ahead of the busy summer travel season. The organization said that amid B.C.'s current tariff and trade-challenged environment, along with the provincial government's public advisory to find alternative places to visit this summer, provincial priorities need to be adapted. 'While affordable housing is a critical provincial issue, so are provincial economic wellbeing and the health of our tourism sector,' the organization said in a statement. 'When the Short-Term Rental Accommodations Act and its accompanying regulations were put into force, the province was extremely focused on creating additional housing by any lever possible. Since its implementation, however, short-term rental (STR) legislation has caused a series of economic challenges across the province that need to be addressed.' The real estate association said that while the need for housing is great, long-term rentals can be a vital piece of the housing continuum and they want to see a few changes made. Story continues below advertisement The first would be to return zoning autonomy to local governments. 'As it stands, local governments can opt out of the principal residence rule in the legislation if they provide adequate written notice and can prove their vacancy rate has been three per cent or over for two consecutive years,' the organization said in a statement. 'While this formula may work for some local governments, the provision has proven to be too restrictive for many communities.' It cited Parksville as an example, which has not experienced a three-per cent vacancy rate in more than 20 years and so would not have qualified for the exemption. The city was eventually granted a partial exemption. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Prior to the implementation of these rules, many local governments had areas and buildings zoned specifically for STR use,' the organization said. 'This allowed communities to balance their need for tourist accommodation with the need for long-term rental units.' 1:56 Government extends deadline for short-term rental platforms Second, the real estate association wants to expand the Strata Hotel and Fractional Ownership Exemption. Story continues below advertisement The Short-Term Rental Accommodations Act provides an exemption from the principal residence requirement for strata hotels and fractional interest property. An exemption exists for these property types, provided the property owner is unable to use their property as a principal residence due to a mandatory provision in a rental pool, rental management agreement, or fractional ownership agreement. The real estate association said these regulations, which were recently amended to include other criteria, are confusing and currently exclude some strata hotels from acquiring exemptions. 'In order to accommodate tourists as well as owners who may wish to live in high-tourism communities on a part-time basis, a high number of unique ownership types such as strata hotels and fractional ownership properties exist across the Interior,' the organization said. 'These properties were designed to facilitate such short-term occupancy needs and are often ill-suited for long-term tenancy. While long-term occupancy is possible in some cases, the primary purpose of these buildings remains focused on tourism and short-term tenancy.' Third, the real estate association wants exemptions put in place for areas that are close to health care centres. They said that due to people needing to travel across B.C. for medical reasons, long stays in hotels may not always be viable or appropriate. For the North and Interior especially, the organization said an exemption should be made for STR units close to major health care centres and hospitals so that the region's health care needs can be met. Story continues below advertisement Finally, the real estate association said it would like exemptions for the television and film sector to incentivize projects to continue operations across the province. 'Current STR legislation has hindered the TV and film sector's ability to house the sizeable transient cast and crew on these projects,' the organization said in a statement. 'It has created an over-reliance on already challenged hotel room inventories across the province, further lowering year-round vacancy rates, increasing consumer competition, and driving up average hotel costs.' Trevor Hargreaves, the senior vice-president of government relations, marketing and communications for the BCREA said the organization knows the government has a challenging job of balancing housing policy with overall provincial economic wellbeing. 'Some key changes to current short-term rental legislation would help many people and communities across the province while maintaining the spirit of the original policy,' he said. B.C. Premier David Eby has hinted the STR rules won't be in place forever, but the housing minister maintains they are still needed right now. 'There are already exemptions put in place for communities that reach a high vacancy rate, to be able to get relief from the measures we've put in place,' Minister Ravi Kahlon said. 'By the way, those measures are working, we're seeing rents come down, we're seeing more housing opportunities come available for communities, and that's always been our priority.'
