Released late last week, the Canada Mortgage and Housing Corporation’s study found that on average, a 1 per cent rise in Vancouver residential real estate prices triggered a 0.5 per cent uptick in Burnaby and Richmond, as well as a 0.7 per cent increase in the North Shore.
The study looked at Vancouver’s spillover effect from 1991 to 2016. The report added that even cities beyond commuting distance saw the impact of the city’s price increases, Reuters reported.
CMHC cautioned that the phenomenon is not unique to Vancouver, as the country’s hottest urban market, Toronto, has also been deemed responsible for fevered home price growth in its outskirts—a development that has led to the Ontario government implementing its own foreign buyers’ tax in April.
The results corroborated the latest data from Statistics Canada, which found that the overheated Toronto and Vancouver markets continue to inflame national home price growth. Average prices in the Canadian residential real estate market increased by 0.2 per cent in March from February, with Toronto prices growing by 0.2 per cent and Vancouver up by 0.7 per cent in the same time frame.
CREA releases latest stats
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The latest report from the federal housing bureau revealed that the cost of housing in Vancouver is inflaming price growth rates in the surrounding metropolitan markets.