Federal gov’t to boost investment on low-cost housing in Vancouver

Federal gov’t to boost investment on low-cost housing in Vancouver

Federal gov’t to boost investment on low-cost housing in Vancouver

The Canadian government has announced that it will be releasing large investment tranches for massively expanded low-cost housing projects across Vancouver.

Earlier this week, Prime Minister Justin Trudeau pledged a $40-million investment through the National Housing Strategy for a new affordable housing development in the city, scheduled for completion this year.

Said project will offer 115 low-cost units situated nearby public transport hubs and facilities like schools and local services.

The federal government also announced that via the Affordable Housing Innovation Fund, it will be helping Vancity credit union supply financing for new developments that are expected to build as much as 2,500 new units for middle-class families across British Columbia.

In addition, further support will be provided for the redevelopment of the Union Gospel Mission’s Women and Families Centre in the Downtown Eastside, expanding the facility to more than 60 units to accommodate women who are recovering from addiction.

Read more: Development approval timelines affecting Vancouver supply

Even though average residential prices in the once-red-hot urban market have moderated (increasing by a relatively minute 1.8% annually in Q4 2018), a recent analysis by the National Bank has concluded that overall affordability continues to deteriorate in Vancouver.

According to the study, the average monthly mortgage payment for a median-priced single-family home in the Vancouver CMA was approximately 101.5% of the region’s average household income level. This represented a 2.7% quarterly increase, as well as a 6.4% annual rise.

The cost of owning a condo has also worsened, as the mortgage for a median-priced unit in the Vancouver CMA was at 49.2% of household income during the fourth quarter, growing by 1.3% from Q3 2018 and 6.3% year-over-year.