The Future of B.C. Housing Report Presentation for the City of Vancouver

FUTURE OF B.C. HOUSING REPORT A study of buyer and renter sentiment in British Columbia

Resonance Consultancy is a global advisor on real estate, tourism and economic development for leading developers, destinations and cities around the world.

R E S O N A N C E C O . C O M

Background & Objectives


Given the recent volatility of the housing market across British Columbia, Resonance Consultancy was interested in conducting market research with BC residents.

The key objectives of the research were to better understand British Columbians’ housing attitudes and preferences as well as their perceptions of the BC housing market.

4

Insights West conducted an online survey with 1,714 residents across BC. An overall sample of this size is considered accurate within +/-2.4%, 19 times out of 20.

All interviews were conducted between October 13-21, 2016.

The data was weighted by age, gender and region according to Census Canada data.

Province Sample Size Region Sample Size

British Columbia 1,714

Greater/Metro Vancouver 603

Vancouver Island 352

Interior/Okanagan 356

Kootenays 202

Northern BC 201


Methodology

A PROVINCE ON THE MOVE


More than 4-in-10 home owners and 7-in-10 renters in Metro Vancouver are planning to buy/rent a different home in the next 5 years.



Among those likely to move in the next 5 years, three-quarters are likely to stay in the region.

28%

40%

35%

34%

1 IN 3 HOMEOWNERS IN METRO VANCOUVER ARE CONSIDERING SELLING THEIR

HOME TO MOVE TO MORE AFFORDABLE MARKETS

METRO VANCOUVER

Millennials (age 18 to 34)

Gen X (age 35 to 54)

Boomers (age 55+)


88

Base: Own their home (n=387)Q33b - How much do you agree or disagree with each of the following statements?I’m planning to sell my home and move to a more affordable market


9

VANCOUVER’S INCOME GAP

$10K

$30K

$50K

$20K

$40K

$60K

$70K

$62,20

2

$60,09

1

$54,39

1

$53,90

5

$52,22

9

$50,45

6

$48,14

2

$47,26

7

$41,98

1

$64,35

2

Toronto HamiltonCalgary Edmonton MontrealOttawa Quebec CityWaterloo Winnipeg Vancouver

Source: Statistics Canada 2011 National Household Survey

2011 Median total incomes for 25-55 year olds with bachelor degrees


10

Base: Likely to move in the next 5 years (Total n=317)Q25. What percentage of your household income (before taxes) do you dedicate to mortgage/rent? Q25a.What is the maximum percentage of your household income (before taxes) that you could dedicate to mortgage/rent?

METRO VANCOUVER

Millennials

Gen X

Boomers+ 21%

30%

28%

27%

Current percentage Maximum purchasing

INCOME ALLOCATION TO HOUSING IN METRO VANCOUVER

30%


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SENTIMENT OF UNAFFORDABILITY IN METRO VANCOUVER

METRO VANCOUVER

Millennials (age 18 to 34)

Gen X (age 35 to 54)

Boomers+ (age 55+)

Base: All respondents (n=603)Q16 - How affordable is housing in the city or region where you currently live?

85%

89%

86%

87%


PREFERRED PRODUCTS


Single family homes are the top property types currently owned, while vacation homes and single family homes are the most desired property types.


14

Base: All respondents (Total n=603)Q6. Which of the following types of housing do you rent now, own now, are considering purchasing, are considering renting, would like to own one day, or would like to rent one day?

Single family home

Apartment/condominium

Vacation home

Duplex/townhome/rowhouse

Retirement housing

Mobile home 4%

16%

15%

29%

11%

28%

1%

2%

12%

4%

13%

9%

2%

2%

12%

4%

23%

33%

Own now Considering purchasing Would like to own

PROPERTY TYPEPROPERTY TYPE IN METRO VANCOUVER - OWN


15

Base: All respondents (Total n=603)Q6. Which of the following types of housing do you rent now, own now, are considering purchasing, are considering renting, would like to own one day, or would like to rent one day?

Single family home

Apartment/condominium

Vacation home

Duplex/townhome/rowhouse

Retirement housing

Mobile home

Rent now Considering renting Would like to rent

PROPERTY TYPE IN METRO VANCOUVER - RENT

0%

6%

2%

4%

2%

2%

1%

3%

2%

5%

3%

0%

1%

3%

1%

18%

8%


Cost of housing is the most important feature when deciding to purchase/rent a new home, followed by private outdoor space.


17

Base: All respondents (n=603)Q30. On a scale of 1-10, how important are each of the following features in your decision to purchase or rent a new home? Statistically significantly higher than comparison group(s).

MOST IMPORTANT HOME FEATURES IN METRO VANCOUVER

REGION AGE

% Important (10 – Extremely Important, 9, 8)Metro Van.

(n=603)Millennials

(n=149)Gen X(n=235)

Boomers+ (n=219)

Cost of housing 82% 84% 83% 79%

Private outdoor space 60% 44% 68% 68%

Number of bedrooms 59% 57% 62% 58%

Overall square footage/size 58% 57% 60% 55%

Walking distance to shopping/dining/entertainment 55% 53% 52% 61%

Access to public transit 55% 63% 51% 50%

Storage space 53% 45% 55% 58%

Garage/indoor parking 53% 43% 54% 63%

Proximity to work 53% 66% 62% 28%

Reputation of developer/building management 48% 38% 51% 57%

Pet friendly 45% 46% 46% 41%

Design/interior design 45% 40% 46% 49%

Sustainability/energy efficiency ratings 41% 38% 42% 44%


Most future home buyers prefer to have 2 or 3 bedrooms in their future home.

3%

11%

31%

38%

13%

4%


AGE

Millennials(n=102)

Gen X (n=129)

Boomers+(n=86)

Studio/Loft 4% 3% 3%

One 20% 7% 10%

Two 35% 33% 52%

Three 28% 34% 30%

Four 10% 18% 3%

Five or more 2% 5% 0%

19

*Small base size, interpret with caution.Base: Likely to move in next 5 years (n=317)Q22. How many bedrooms would you like to have in your next home?

Statistically significantly higher than comparison group(s).

NUMBER OF BEDROOMS IN FUTURE HOME IN METRO VANCOUVER


AGE

Millennials(n=102)

Gen X (n=129)

Boomers+(n=86)

500 square feet or less 7% 1% 3%

501-1,000 square feet 42% 25% 40%

1,001-1,500 square feet 30% 37% 36%

1,501-2,000 square feet 16% 21% 16%

More than 2,000 square feet 6% 16% 5%

20

*Small base size, interpret with caution.Base: Likely to move in next 5 years (n=317)Q23. What is the minimum size you would consider for your next home?

9%

18%

34%

35%

4%


MINIMUM SQUARE FOOTAGE OF FUTURE HOME IN METRO VANCOUVER


HOUSING COMPROMISES


The top 2 housing compromises Metro Vancouver residents are willing to make are living in a smaller home to be closer to transit, shops and and restaurants and living in a smaller home to be closer to work.


23Base: All respondents (n=603)Q32. When choosing a new home to live in would you: Statistically significantly higher than comparison group(s).

REGION AGE

Metro Vancouver

(n=603)Millennials

(n=149)Gen X (n=235)

Boomers+ (n=219)

Consider living in a smaller home in order to be closer to transit, shops and restaurants 50% 57% 46% 46%

Consider living in a smaller home in order to be closer to your place of work 47% 62% 53% 23%

Consider living in a high-rise (8+ storey) building for a reduction in property taxes 40% 53% 37% 30%

Accept a community park as a substitute to a personal yard in order to live closer to work, transit, shops and restaurants 39% 45% 39% 32%

Consider living in a laneway home/ground-level/ basement apartment to reduce housing costs 28% 30% 26% 28%

Give up a parking space for reduced purchase price/rent 25% 37% 26% 12%

Consider renting out your home on a short-term basis through a service like Airbnb to help offset your living costs 22% 23% 25% 16%

Accept two children sharing a bedroom to live in an urban or walkable community 19% 26% 20% 7%

None of the above 22% 13% 20% 34%

HOUSING COMPROMISES IN METRO VANCOUVER


Metro Vancouver residents are most likely to feel that taxing foreign investment and limiting foreign investment in the housing market are sustainable solutions to address the current affordability issue in the region.


25

Base: All respondents (n=603)Q39. What do you think would be a more sustainable solution in order to address the current housing affordability issue in BC?

REGION AGE

Metro Vancouver

(n=603)Millennials(n=149)

Gen X (n=235)

Boomers+(n=219)

Tax foreign investment in the housing market 71% 71% 70% 72%

Limit foreign investment in the housing market 70% 75% 69% 65%

Invest in more amenities and infrastructure in suburban areas to create new economic centres outside downtown 51% 49% 48% 56%

Increase the housing supply by fast tracking approvals of new rental buildings 48% 42% 46% 58%

Revise zoning in suburban areas to permit development of more multi-family housing 46% 45% 44% 49%

Increase property taxes on single family homes to encourage higher density development 13% 17% 14% 6%


POTENTIAL SOLUTIONS FOR ADDRESSING HOUSING AFFORDABILITY IN METRO VANCOUVER

THANK-YOU! Tim Hasid [email protected] +1-604-681-0804

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The Future of B.C. Housing Report Presentation for the City of Vancouver