$1 million doesn't go far for Metro house hunters
Prices have doubled every 10 years since the 1980s, new report reveals
House hunting in Vancouver with $1 million won't get you far.
A new Royal LePage report examined what $1 million — give or take $50,000 — can get you across Canada and found that budget in Vancouver won't even get you two bedrooms.
What will $1 million will get you in this city? About 900 square feet, 1.8 bedrooms and 1.6 bathrooms. That's about 287 square feet less than the average property in Metro Vancouver and 860 square feet less than the average property in Canada.
Homebuyers in Metro could get more square footage by venturing out to the suburbs. In Metro, the average square footage of a $1-million home is about 1,187.
In comparison, homebuyers in Edmonton, where $1 million will stretch the furthest, can get an average 2,675 square feet, which translates to 3.3 bedrooms and 2.8 bathrooms.
In Vancouver, generally, prices have doubled every 10 years since the 1980s, said Royal LePage West realtor Adil Dinani.
“What $1 million is today is where $500,000 got you a decade ago.”
A million today could get you a one-bedroom home in downtown Vancouver, or a two-bedroom condo elsewhere in the city, or a townhouse in the Fraser Valley.
“In the heart of Metro Vancouver, you're certainly not able to access detached homes anymore, which is unfortunate,” said Dinani. “The reality is the flight to affordability and more space is across the bridge (to the Fraser Valley).
“And we know if we go to Alberta, for example, the opportunities are much more vast in the $1-million range.”
While $1 million could have bought a decent-sized property in desirable neighbourhoods in almost any market in previous years, over time the purchasing power of $1 million has eroded in some cities leading to more discrepancies between communities, said Karen Yolevski, COO of Royal LePage Real Estate Services Ltd. “Depending on the market that you're shopping in, a $1-million home can mean something very different,” she said in a statement. “In Calgary, a budget of $1 million is considered the move-up price point for existing homeowners. In Vancouver, the same amount is often the starting point for entry-level buyers.”
Toronto, like Vancouver, ranked below the national average, with a million bucks buying only an average of 1,218 sq. ft. That money would buy at least 2,000 square feet in Canada's other metropolitan centres, including 2,093 square feet in Montreal, 2,179 square feet in Calgary, 2,303 square feet in Ottawa and 2,543 square feet in Halifax.
The report also looked at homes in the $2-million range, which in Vancouver can buy a 1,427-sq.-ft three-bedroom, 2.4-bath home — about 1,000 square feet smaller than the national average.
The discrepancy in purchasing power means British Columbians are more likely to say $1 million isn't enough to buy them a home that meets their needs.
About 45 per cent of British Columbians said $1 million is inadequate, according to a survey conducted by Leger for Royal LePage.