Rising real estate values have given Vancouver households an average net worth of over $1 million, according to a new study.
VANCOUVER – Is Vancouver really a city of Millionaires based on inflated home prices.
Well the boom in prices have certainly made owners millionaires on book but the costs associated with keeping homes are probably forcing many to re-mortgage their homes unless they cut and run to Surrey or other cheaper destination relative to the million plus price of homes in Vancouver.
Rising prices of homes have pushed the average net worth of Metro Vancouver households up over $1 million, making it Canada’s first “city of millionaires,” according to a new study.
The Environics Analytics study claims the average net worth of Vancouver households rose 7.1 per cent last year to hit $1,036,202 by the end of 2015, reported CBC News.
The study ranked Metro Toronto households in second, with an average net worth up 5.4 per cent to $962,993.
Greater Victoria was third at $912,362, up 3.4 per cent over the previous year.
Calgary was fourth at $898,240, a 2.5 per cent decrease over the previous year, which the study blamed on a 4.7 percent decline in real estate values.
Peter Miron, vice-president of economic data at Environics Analytics, said Vancouver’s wealth can be attributed to its rising real estate values, but cautions the recent slowdown in Metro Vancouver’s real estate market could put that millionaire status in jeopardy.
“While we expect real estate in Vancouver to continue to rise overall in 2016, the introduction of the recent land transfer tax on foreign nationals may dampen demand for real estate in the future,” he said.
Meanwhile, falling oil prices have pushed down the average net wealth of households in cities like Calgary, he notes.