The Great Vancouver Brain Drain

We have a pretty simple problem here. We have a region with the highest home prices in Canada. And in that same region, we have a median household income that is the lowest in Canada among metro regions.

Extend that out to all of North America, and we’re 3rd in high-priced homes and 50th in low-paid workers. Out of 51 metro areas covered.

So, predictably, Metro Vancouver is increasingly losing top young talent to other provinces where families can hope to find some housing stability.

A December survey by Statistics Canada shows that while B.C’s population crossed the five million mark for the first time, mostly due to international migration, the province also lost 1,200 people to other provinces in the third quarter of 2018. This is after 21 straight quarters of gains.

At some point, it will just stop making any economic sense for young professionals to try to survive and thrive in this sickeningly overpriced city. And no amount of livability surveys can change that.

Finance minister Carole James is aware of the problem, saying there’s no doubt that Vancouver is facing a brain drain brought on primarily by the housing crisis. Particularly in the tech industry, the opportunities and the salaries are so much better in other cities that Vancouver has little hope of staying competitive for top talent.

According to the latest numbers from BC Assessment, the housing market is beginning to level off, with some homes dropping in value by as much as 10%. But until we either halve housing prices or double salaries, the brain drain will most likely continue.

In the meantime, the best solution, as we’ve said before, is increasing the supply of modern, affordable purpose-built rental properties like Willoughby Walk, which recently opened its doors to its first tenants. Families can have the housing stability they desire in properties like this, which are under no danger of being flipped for renovations or seeing absurd rent hikes.

Our co-founder, Daniel Greenhalgh, plans for ENM to be part of this solution. “It’s clear that young professionals and couples looking to start a family don’t have many options for buying a home in Metro Vancouver. So we want to be part of setting a high standard for rental properties that will attract those that are priced out of buying but who still want to put down roots in a home and a community. We think Willoughby Walk can help set that standard.”

The city and provincial governments, who have enjoyed quite a windfall of profits from property taxes and development fees, need to start prioritizing and incentivizing these purpose-built rental projects if they hope to stop the brain drain. These homes provide the security and affordability that Metro Vancouver sorely needs.

“I think most families are willing to rent in a desirable city with good job opportunities, as long as they’re signing up for a predictable, affordable future in a well-managed property. It’s about security, and properties like Willoughby Walk provide that.”