Long-term investor and real estate development expert Bruce Strebinger has a lot of experience with the Vancouver real estate market. What’s more, as someone who regularly funds start-up businesses, he’s also familiar with what aspiring real estate investors need to do in order to succeed. He recently offered a bit of insight into Vancouver’s current real estate market so investors know what to expect this year and the next.
Vancouver fared better economically during the early days of the COVID-19 pandemic than other large cities in Canada. It has also bounced back faster than many other Canadian cities, and this has had a huge impact on the residential real estate market. There is currently a vacancy rate of no more than 1%, and rich Canadians who own homes in the city are passing these on to relatives and children who need a place to live as rents have soared by as much as 30% over the last two years. Bruce Strebinger warns that the housing bubble isn’t going to last forever, but the conditions are certainly right for real estate investors to jump into the real estate market as landlords. “There are people looking to get out” of Vancouver’s real estate market, Bruce Strebinger notes, as some landlords took a huge financial hit during the pandemic as renters who were unable to pay rents could not be evicted during COVID-19 pandemic emergency measures.
At the same time, investors shouldn’t just focus on homes available for purchase. Offices and industrial properties are also doing well as low vacancy rates combined with exponential business growth raise land values, especially in the downtown area. There is a trend toward vertical development; this can be costly for investors who are purchasing not only land but also investing heavily in construction; however, the payoff can be well worth the investment. Investors would do well to keep an eye on the technology and mining industries, as these have spurred Vancouver’s economic growth in recent years and trends in these industries will almost certainly affect Vancouver’s commercial real estate market boom.
Granted, Vancouver isn’t the only city in Canada with a booming real estate market. Investors who find the city too expensive to invest in may want to wait until the market cools and instead consider investing in other cities where prices are still relatively low compared to Vancouver. Edmonton is one good option; the city’s real estate values aren’t as high as Vancouver’s but the average sale price in the city is expected to rise by as much as 5% by the end of 2022. On the other hand, those who are still intent on investing in Vancouver real estate would do well to consider the above Bruce Strebinger advice. Insight from someone who is familiar with the local market and how it works can increase a real estate investor’s odds of success.