In my recent article, I have discussed the Vancouver itinerary ideas. Vancouver is indeed a very beautiful city to explore but after discussing the price point, I have gotten many queries about Vancouver being expensive. If yes then why Vancouver is so expensive? Though I was supposed to answer this question in my previous article, today I will discuss it in more depth.
Note – Vancouver is an expensive city but it is not an expensive city to visit. However, you may face expensive hotels and services but it is still worth visiting Vancouver.
A little introduction to Vancouver
Vancouver is a city in southwestern British Columbia, with an approximate population of 2.7 million which makes it 3rd most populous metropolitan city of Canada. It is a popular tourist attraction due to its scenic views, natural beauty, pleasant atmosphere, and abundant outdoor activities.
Quick Facts About Vancouver City –
- Vancouver is the 10th most clean city in the world.
- According to the Economist Intelligence Unit, Vancouver is also 3rd liveable city in the world.
- Kitsilano Pool, located in Kitsilano Beach, is the longest outdoor swimming pool in North America with a length of 137 meters.
- Vancouver has the world’s oldest apple tree which was planted in 1826 and still bears apples.
- Similar to Hollywood in Los Angeles, Vancouver is known as the Hollywood of the north.
- Due to moisture-rich storms from the Pacific Ocean, Vancouver is known as a rain city with an average rain of ~ 1200mm.
Why Vancouver is so expensive
Vancouver is generally considered an expensive city whether you are planning a trip or want to live there for a long time. The biggest reason for this is the scarcity of land area and high housing costs in Vancouver. According to a report published by the Chapman University of California, Vancouver is 3rd most expensive city in the world and is tagged as an “impossibly unaffordable” city.
According to the same report, in Vancouver, median house prices are more than nine times the median household income which is indeed a shocking fact. But travelers shouldn’t be bothered here, as they don’t travel there to reside. However, while exploring this city, you find that Vancouver is so expensive especially when you stay in a hotel or resort. Let us understand this more deeply why is Vancouver so expensive?
The Scarcity of Land
The unavailability of land for the development and construction of new houses is the major reason for this pricy city. According to various reports, only 15% land of in Vancouver is suitable for land development and construction making land acquisition very competitive. So, if there is too much demand and is not fulfilled, inflation is obvious (basic economic rule). As per the Vancouver officials, Vancouver gaining 50,000 new residents every year but there is no increase in land area!
Government Policies and Taxes
Government policies indeed have a significant impact on the land prices and development in a city or a as a country whole. A policy that was implemented in 2016 in Vancouver curbs the rapid escalation of houses and industrial development. This additional levied tax on non-Canadians by British Columbia hit hard over the investors and Vancouver has seen a flat 15% decrease in foreign purchases.
Under the 2016 policy, the Canadian government also imposed Speculation and Vacancy Tax (SVT) on vacant lands again deterring land acquisition and such exchanges. Now, this not only reduced new development but also significantly impacted the affordability of the houses. This is why Vancouver is so expensive.
Increase in Population Growth
Though the population growth of Vancouver is 0.98% only when compared to the 2023 population data, however, it is higher than the growth of 2022. But when we specifically talk about metro Vancouver, the numbers are not significant instead as a whole. The estimated population of Vancouver in 2024 is 3.021 million residents which was 2.842 in 2023.
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Accordingly, Vancouver took almost a decade to add a one million population to its existing population but the current scenario is not the same. Vancouver is a beautiful city and the tourists as well as migration have seen a significant boom recently (thanks to the internet). The increase in population greatly contributes to resource consumption and increases the density.
Expensive Ownership and Rental Homes
The region of metropolitan is comparatively very expensive when compared to the other regions of Vancouver and British Columbia. This is due to the fact that rental and homeownership are very expensive in these regions. On the other way, you can say that the prices associated with homes and rentals are the major reason why Vancouver is expensive. The taxes are increased significantly after the new tax policies.
Vancouver is the best city to live in the world
“Vancouver is the best city in the world” – indeed this statement cannot be justified as the reason why is Vancouver expensive. Unfortunately, this is also a great reason why Vancouver is expensive to live or visit. Due to the very low crime rate, beauty, and greenery throughout the city, Vancouver is always in demand and people want to live there.
Visitors and residents across the world are naturally attracted to the supernatural beauty of Vancouver. However, Vancouver authorities never take benefit of these blessings! Even the British Columbian government imposed significant restrictions under the Agricultural Land Reserve in 1973. These strict restrictions on the urbanization of Vancouver again increased the land price and associated building prices.
Conclusion
Vancouver is certainly beautiful and the most recommended city to travel but it may not be affordable for some as we discussed in this article. In this article, you have learned why Vancouver is so expensive to live and visit. Land scarcity, strict land acquisition policies, increasing population, operational costs, ownership costs, etc are a major reason that contributes to the rising cost of Vancouver. However, if your goal is just to travel to Vancouver, it won’t cost you much, so don’t prevent yourself from exploring this stunning natural city.