FUTURE OF B.C. HOUSING REPORT A study of buyer and renter - - PowerPoint PPT Presentation

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.

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Background & Objectives

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• 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.

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• Insights West conducted an online survey with 1,714 residents across BC. An overall sample
• f 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.

Region Sample Size Greater/Metro Vancouver 603 Vancouver Island 352 Interior/Okanagan 356 Kootenays 202 Northern BC 201

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Methodology

A PROVINCE ON THE MOVE

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Most British Columbians currently live in a suburban community or downtown/near downtown,which are also the two most desired locations.

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Base: All respondents (Total n=1,714)

• Q14. Which of the following best describes the location where you currently live? 

• Q15. Which of the following best describes the ideal location where you would like to live?

CURRENT LOCATION TYPE DESIRED LOCATION TYPE

Suburban community Suburban community Downtown/near downtown Downtown/near downtown Small town Small town Rural area Rural area Resort area Resort area 3% 13% 17% 32% 34% 1% 8% 13% 34% 44%

CURRENT AND PREFERRED LOCATION TYPE

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Millennials’ location preference is equally divided between urban and suburban locations.

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Base: All respondents

• Q15. Which of the following best describes the ideal location where you would like to live?

TOTAL AGE

(n=1,714) Millennials
 (n=249) Gen X
 (n=594) Boomers+
 (n=871)

Suburban community 34% 40% 34% 29% Downtown/near downtown 32% 41% 32% 26% Small town 17% 9% 16% 24% Rural area 13% 9% 13% 16% Resort area 3% 1% 4% 4%

Statistically significantly higher than comparison group(s).

DESIRED LOCATION TYPE

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Vancouver is viewed to be the most desirable city in Metro Vancouver, followed by Burnaby in a distant 2nd

AGE

Millennials
 (n=202) Middle Aged
 (n=371) Seniors
 (n=348)

Vancouver 72% 60% 41% Burnaby 37% 25% 17% North Vancouver 28% 27% 14% West Vancouver 19% 22% 18% White Rock 14% 17% 30% New Westminster 12% 9% 9% Richmond 16% 6% 9% Langley 11% 9% 11% Coquitlam 10% 7% 8% Surrey 9% 5% 8% Tsawwassen 3% 5% 12% Bowen Island 4% 8% 5% Port Moody 5% 7% 4% Delta 3% 4% 7% Maple Ridge 4% 5% 4% Abbotsford 4% 3% 6% Port Coquitlam 3% 5% 4% R E S O N A N C E C O . C O M

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*Small base size, interpret with caution.
 Base: Would most like to/consider living in Metro Vancouver (n=921)

• Q29. Which parts of Greater/Metro Vancouver would you most like to live in?

Statistically significantly higher than comparison group(s).

MOST DESIRABLE METRO VANCOUVER COMMUNITIES

4% 4% 4% 5% 5% 6% 6% 7% 8% 10% 10% 10% 20% 20% 24% 27% 58%

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

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Among those likely to move in the next 5 years, three-quarters are likely to stay in the same city/region, with Vancouver Island residents being the most likely to stay in the same city/region.

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Among the 1-in-4 residents who 
 plan to move to a different region,

• ne-quarter are most likely to move 


to Metro Vancouver, while another quarter are likely to move outside BC.

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Greater/Metro Vancouver Kelowna and Thompson-Okanagan Victoria, Vancouver Island South, & Gulf Islands Nanaimo and Vancouver Island North Cranbrook, Kootenays and Rockies Sunshine Coast Prince Rupert, Prince George, and Northern BC Squamish-Whistler-Pemberton Somewhere outside BC 15

Base: Likely to move to different region in next 5 years (n=182)

• Q19b. Which B.C. region are you most likely to move to?

27% 1% 2% 4% 6% 10% 11% 13% 25%

FUTURE REGION MOST LIKELY TO MOVE TO

1 IN 3 HOMEOWNERS IN METRO VANCOUVER ARE CONSIDERING SELLING THEIR HOME TO MOVE TO MORE AFFORDABLE MARKETS

Total Metro Vancouver Residents Millennials (age 18 to 34) Gen-X (age 35 to 54) Boomers (age 55+)

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28% 40% 35% 34%

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VANCOUVER’S INCOME GAP

$10K $30K $50K $20K $40K $60K $70K

$62,202 $60,091 $54,391 $53,905 $52,229 $50,456 $48,142 $47,267 $41,981 $64,352 Toronto Hamilton Calgary Edmonton Montreal Ottawa Quebec City Waterloo Winnipeg Vancouver

Source: Statistics Canada 2011 National Household Survey

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

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PREFERRED PRODUCTS

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

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Base: All respondents (Total n=1,714)

• 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?

RENT OWN

Single family home Single family home Apartment/condominium Apartment/condominium Vacation home Vacation home Duplex/townhome/rowhouse Duplex/townhome/rowhouse Retirement housing Retirement housing Mobile home Mobile home 8% 18% 31% 34% 38% 74% 3% 15% 12% 26% 10% 23% 2% 2% 10% 4% 11% 8% 3% 1% 9% 4% 17% 43% 3% 10% 9% 7% 22% 12% 1% 1% 4% 1% 15% 8%

Own now Considering purchasing Would like to own Rent now Considering renting Would like to rent

PROPERTY TYPE

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

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

• utdoor space.

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Base: All respondents (n=1,714)

• 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?

Cost of housing Private outdoor space Number of bedrooms Overall square footage/size Storage space Walking distance to shopping/dining/entertainment Garage/indoor parking Pet friendly Reputation of developer/building management Access to public transit Proximity to work Sustainability/energy efficiency ratings Design/interior design 42% 44% 46% 46% 47% 48% 49% 49% 51% 52% 55% 65% 80% 21% 21% 18% 16% 19% 13% 18% 20% 24% 23% 24% 18% 16% 12% 14% 14% 13% 13% 10% 14% 14% 14% 15% 15% 19% 20% 9% 10% 14% 17% 15% 25% 17% 15% 13% 15% 16% 27% 44%

10 – Extremely important 9 8

MOST IMPORTANT HOME FEATURES

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Age of home/building Guestrooms for friends/family Air-conditioning Gourmet kitchen Proximity to good schools Access to fitness facilities Formal dining room In-law/rental suite Access to swimming pool Proximity to good child care Community room/clubhouse Electric car charging station 23

Base: All respondents (n=1,714)

• 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?

9% 10% 11% 13% 14% 14% 22% 22% 28% 29% 36% 41% 5% 5% 5% 7% 7% 8% 10% 10% 14% 13% 15% 21% 2% 2% 3% 3% 3% 4% 6% 6% 9% 8% 11% 10% 2% 3% 2% 3% 4% 2% 5% 6% 5% 9% 10% 10%

10 – Extremely important 9 8

LESS IMPORTANT HOME FEATURES

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For Millennials, cost of housing, proximity to work and access to transit are most important.

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For Gen-X, cost of housing, private

• utdoor space and number of

bedrooms are most important.

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For Boomers, cost of housing, private

• utdoor space and garages/indoor

parking are most important.

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Base: All respondents

• 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?

TOTAL AGE

% Important (10 – Extremely Important, 9, 8)

(n=1,714) Millennials
 (n=249) Gen X
 (n=594) Boomers+ (n=871)

Cost of housing 80% 83% 82% 75% Private outdoor space 65% 50% 71% 69% Number of bedrooms 55% 54% 59% 53% Overall square footage/size 52% 54% 54% 50% Storage space 51% 43% 53% 54% Walking distance to shopping/dining/entertainment 49% 49% 44% 53% Garage/indoor parking 49% 39% 48% 56% Pet friendly 48% 52% 50% 43% Reputation of developer/building management 47% 35% 48% 54% Access to public transit 46% 55% 43% 43% Proximity to work 46% 63% 58% 21% Sustainability/energy efficiency ratings 44% 40% 43% 48% Design/interior design 42% 37% 41% 47%

Statistically significantly higher than comparison group(s).

MOST IMPORTANT HOME FEATURES

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Asians are less concerned with private

• utdoor space and pet friendliness, but

more concerned with access to public transit, number of bedrooms, proximity to work, overall size, garage and walking distance to entertainment.

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*Small base size, interpret with caution.
 Base: All respondents

• 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?

TOTAL ETHNICITY

% Important (10 – Extremely Important, 9, 8) (n=1,714) Caucasian 
 (n=614) Asian
 (n=138)

Cost of housing 80% 80% 82% Private outdoor space 65% 68% 44% Number of bedrooms 55% 54% 63% Overall square footage/size 52% 49% 60% Storage space 51% 52% 47% Walking distance to shopping/dining/entertainment 49% 47% 59% Garage/indoor parking 49% 47% 60% Pet friendly 48% 51% 35% Reputation of developer/building management 47% 46% 52% Access to public transit 46% 42% 69% Proximity to work 46% 43% 63% Sustainability/energy efficiency ratings 44% 43% 48% Design/interior design 42% 41% 47%

Statistically significantly higher than comparison group(s).

MOST IMPORTANT HOME FEATURES

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

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AGE REGION

Millennials
 (n=175) Gen X (n=308) Boomers+
 (n=299) Metro 
 Van.
 (n=317)

Studio/Loft 4% 2% 2% 4% One 18% 7% 9% 13% Two 34% 34% 51% 38% Three 30% 38% 32% 31% Four 12% 15% 3% 11% Five or more 3% 4% 1% 3% 31

*Small base size, interpret with caution.
 Base: Likely to move in next 5 years (n=782)

• Q22. How many bedrooms would you like to have in your next home?

Statistically significantly higher than comparison group(s).

3% 11% 33% 38% 12% 3%

NUMBER OF BEDROOMS IN FUTURE HOME

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AGE REGION

Millennials
 (n=175) Gen X (n=308) Boomers+
 (n=299) Metro 
 Van.
 (n=317)

500 square feet or less 10% 3% 3% 4% 501-1,000 square feet 37% 26% 36% 35% 1,001-1,500 square feet 30% 37% 38% 34% 1,501-2,000 square feet 17% 22% 17% 18% More than 2,000 square feet 6% 12% 6% 9% 32

*Small base size, interpret with caution.
 Base: Likely to move in next 5 years (n=782)

• Q23. What is the minimum size you would consider for your next home?

8% 19% 35% 33% 6%

Statistically significantly higher than comparison group(s).

MINIMUM SQUARE FOOTAGE OF FUTURE HOME

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HOUSING COMPROMISES

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The top 2 housing compromises BC residents are willing to consider 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.

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Base: All respondents (n=1,714)

• Q32. When choosing a new home to live in would you:

Consider living in a smaller home in order to be 
 closer to transit, shops and restaurants Consider living in a smaller home in order to be 
 closer to your place of work Accept a community park as a substitute to a personal yard in

• rder to live closer to work/transit/shops/restaurants

Consider living in a high-rise (8+ storey) building
 for a reduction in property taxes Consider living in a laneway home/ground-level/ 
 basement apartment to reduce housing costs Give up a parking space for reduced purchase price/rent Consider renting out all or part of your home on a 
 short-term basis through a service like Airbnb 
 to help offset your living costs Accept two children sharing a bedroom to live
 in an urban or walkable community None of the above 26% 17% 21% 23% 26% 34% 35% 42% 46%

HOUSING COMPROMISES

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Base: All respondents (n=1,714)

• Q32. When choosing a new home to live in would you:

Statistically significantly higher than comparison group(s).

TOTAL AGE REGION

(n=1,714) Millennials
 (n=249) Gen X (n=591) Boomers+ (n=869) Metro 
 Van.
 (n=603)

Consider living in a smaller home in order to be closer to transit, shops and restaurants 46% 54% 43% 44% 50% Consider living in a smaller home in order to be closer to your place of work 42% 60% 50% 19% 47% Accept a community park as a substitute to a personal yard in

• rder to live closer to work, transit, shops and restaurants

35% 44% 35% 28% 39% Consider living in a high-rise (8+ storey) building for a reduction in property taxes 34% 49% 31% 26% 40% Consider living in a laneway home/ground-level/ basement apartment to reduce housing costs 26% 30% 23% 25% 28% Give up a parking space for reduced purchase price/rent 23% 35% 24% 12% 25% Consider renting out all or part of your home on a short-term basis through a service like Airbnb to help offset your living costs 21% 25% 24% 14% 22% Accept two children sharing a bedroom to live in an urban or walkable community 17% 29% 19% 6% 19% None of the above 26% 15% 23% 37% 22%

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BC 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 BC.

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Base: All respondents

• Q39. What do you think would be a more sustainable solution in order to

address the current housing affordability issue in BC?

TOTAL AGE REGION

(n=1,714) Millennials
 (n=249) Gen X 
 (n=594) Boomers+
 (n=871) Metro 
 Van.
 (n=603)

Tax foreign investment in the housing market 70% 70% 69% 70% 71% Limit foreign investment in the housing market 67% 71% 67% 65% 70% Invest in more amenities and infrastructure in suburban areas to create new economic centres outside downtown 47% 45% 45% 51% 51% Increase the housing supply by fast tracking approvals of new 
 rental buildings 45% 41% 42% 53% 48% Revise zoning in suburban areas to permit development of more multi-family housing 44% 44% 40% 48% 46% Increase property taxes on single family homes to encourage higher 
 density development 10% 15% 11% 4% 13%

Statistically significantly higher than comparison group(s).

POTENTIAL SOLUTIONS FOR ADDRESSING HOUSING AFFORDABILITY IN BC

THANK-YOU!

Chris Fair cfair@ResonanceCo.com +1-646-413-8887