New home ownership data from Statistics Canada show that taxes and government policies imposed by the BC government in 2017 and 2018 coincided with less speculation and a boost for first-time home buyers.
In BC, the percentage of first-time buyers increased by 5.6% in 2018 and 2019, while repeat buyers decreased by 10.1%, the Canadian Housing Statistics Program said on Tuesday in a report highlighting “Inequalities” in housing.
The increase in the number of first-time buyers during this period differed in British Columbia. The Kelowna region had the largest increase with 31.1%. compared to Abbotsford-Mission with 13.4%, Vancouver with 6.1% and Victoria with 14.1%.
Statistics Canada speculates that “the decline in the number of repeat buyers in British Columbia has come in the wake of provincial legislation to cool the property market, which may prevent existing homeowners from relocating or investing further.” real estate”.
The report notes an additional real estate transfer tax on homes sold for more than $ 3 million, a new speculation and vacancy tax to move housing into the rental market, and an increase in foreign buyer tax from 15% to 20%.
Such measures were introduced by Attorney General David Abby, the Minister for Housing, and the then Minister of Finance Carol James of the BC NDP government.
How big is the wealth gap between upper and lower homeowners?
The report notes that British Colombians who own a lot of real estate account for almost a third of all housing in the province. Data from the Canadian Housing Statistics Program show that multiple homeowners make up 15% of all homeowners in BC and own 29% of all properties. Meanwhile, the richest 10% of homeowners, according to declared income, earned more than the lowest 50% of homeowners combined. Measured by housing values, those who owned 10% of the richest dwellings represented 29% of the sum of all dwelling values in BC. [email protected]
