[06.15.2024 - 06.21.2024] Weekly Real Estate Review: Vancouver and Canada Markets

Report Reveals Skyrocketing Rent Costs for Vancouver Tenants

A new Royal LePage report reveals that 27% of Vancouver renters spend more than half their income on rent, significantly higher than the national average of 16% and surpassing Toronto (19%) and Montreal (10%). April figures from liv.rent suggest some Vancouver renters pay over 60% of their salary on rent, far exceeding the recommended 30% rent-to-income ratio. Despite a boost in rental supply, affordability remains a major challenge in Vancouver, where the median household income lags behind other major cities. Consequently, only 27% of renters in B.C. plan to buy a home in the next two years.

Major Tower Development Proposed Near Future Emily Carr SkyTrain Station

A proposal for three towers next to the upcoming Great Northern Way-Emily Carr SkyTrain station in East Vancouver has been submitted. The development includes two 35-storey rental housing towers with 548 units, a 20-storey office tower, retail and restaurant space, and a daycare. Twenty percent of the rental units will be below market rate. The project, designed to fit into the city's Broadway Plan, is a collaboration between PCI Developments and Chip Wilson’s Low Tide Properties. Public input is welcomed on the city’s Shape Your City web page.

Canada Housing Starts Surge 10% in May, Reaching Yearly High

In a rare positive development amidst bleak housing supply news, Canada saw a 10% increase in housing starts in May, reaching the highest level in seven months. According to the Canada Mortgage and Housing Corporation (CMHC), the seasonally adjusted annual rate (SAAR) of housing starts rose to 264,506 units from April's 241,111 units. Urban centres with populations over 10,000 experienced a 39% year-over-year increase, driven by a 49% rise in multi-unit starts and a 6% rise in single-detached starts.

CRA Monitors Frequent Trading in TFSAs for Business Activity

The Canada Revenue Agency (CRA) has been scrutinizing frequent trading in Tax-Free Savings Accounts (TFSAs), considering it a potential business activity subject to tax. A recent Federal Court of Appeal decision emphasized this point, highlighting a Vancouver-based investment adviser who grew his TFSA from $15,000 to over $617,000 in three years through frequent penny stock trading. The CRA may reassess such accounts, which are intended to be tax-free, if the trading activity is deemed business-related. This case serves as a reminder to Canadians about the risks of active trading in TFSAs.

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