CMHC has generated some data for a debate that has, so far, been based on guesswork, speculation, extrapolation and misinterpretation.
Condo investors account for less than one-fifth of those who own units in two of North America’s most expensive housing markets, according to survey results from Canada Mortgage and Housing Corporation (CMHC).
But as Vancouver and Toronto grapple with tight vacancy rates and high homeownership costs, data released August 8 shows 6.9% of condo investors maintain vacant units.
So is 7 percent higher or lower than you expected? Is it believable? Or irrelevant?
I heard that Greater Vancouver has has ~40% renters. If 7% of condos are for rental, there must be far, far more buildings dedicated to rentals than I had imagined. *shrug*
I think this is saying 7% of condos purchased as investments are vacant. 93% are occupied either by the owner, family member, or I presume a renter.
Ah ha. Thanks octavio, I didn’t read that very well 🙂
17% of condo are owned by investors. Of that 17%, 7% are vacant.
7% of 17% means that 1.2% of all condos are vacant.
See how all this gets exaggerated, by misunderstanding simple math and posting incorrect headlines. Wait til the local media picks this up misinforming us that 7% are empty.
I don’t think that it means 1.2% of all condos are vacant. There are certainly vacancies from time to time in non-investor owned condos as they are turned over.
Land transfer taxes and property taxes are far too low in Vancouver. If we raised both, ideally coupled with lower income taxes, a more balanced revenue scheme is the result that effectively monetizes foreign investors’ appetite for our precious real estate to fund underfunded and/or subsidized healthcare, education and social services.
There are some caveats here. People who buy and occupy condos are often motivated by the investment aspect as well. Very few people anticipate living in a very small condo for that long, but they anticipate hanging on to them after they move.
I always had my doubts that condo buyers would be willing to let huge numbers of condos sit empty, and forgo significant income. It’s just irrational.
I think this scuttles the claim that condos create a lifeless city. 93% of units are occupied; it’s safe to say when the lights are off, it doesn’t mean no one lives there. Maybe they’re just walking the dog.
So, people want to live in condos. We should let developers build the housing that Vancouverites demand.