If you’re planning to buy a home in Vancouver any time soon, be prepared to pay a pretty penny. Vancouver is one of the most expensive cities in the country, with the average house price in Vancouver reaching over the $1 million mark.
Before you buy a home in Vancouver, do a little homework on where prices are currently at and take some time to save for a big down payment while getting your finances in order.
And if Vancouver is a little too pricey for you, other nearby housing markets offer prices that are much lower in comparison.
What Is The Average House Price In Vancouver?
Like Toronto, the average price for a home in Greater Vancouver is high at $1,161,300. That’s a hefty price and is among the most expensive centres in the entire country. Prices have increased by 4.2% over the past year.
Vancouver’s home prices are well over the province-wide average of $964,371. BC’s average home price is quite high mainly because of the exorbitant home prices that the city of Vancouver is seeing.
How Does The Average House Price In Vancouver Compare To Other Cities In British Columbia?
| Home Prices 2024 | Year-Over-Year % Change | |
| Greater Vancouver* | $1,183,300 | 4.5% |
| Vancouver Island* | $671,700 | 4.9% |
| BC Northern | $401,806 | 8.5% |
| Victoria* | $848,000 | 0.2% |
*based on MLS HPI benchmark prices
Why Are Home Prices So High In Vancouver: Housing Market Outlook
Location plays a key role in why real estate prices in Vancouver are so high. Because Vancouver abuts the water’s edge on the west coast, there’s little place to expand other than eastward. And a city on the waterfront — on the Pacific Ocean, no less — certainly contributes to the rarity of the land in Vancouver and therefore its appeal to homebuyers.
Vancouver’s proximity to the Rockies and its pleasant climate compared to other parts of Canada also make this city an attractive place to call home. There is also plenty of opportunity for work in Vancouver, and along with employment opportunities comes a higher demand for housing, which can drive prices up. Further, the majority of new immigrants choose Vancouver after Toronto. Canada has a massive land mass but the major cities are highly saturated with the majority of the population
Other factors, including the high rate of foreign real estate investment, are also driving up home prices. Plus, the city is home to a lot of fixing and flipping for profit, which can fuel home prices higher at a faster rate.
How Much Should You Spend On A House In Vancouver?
Your income not only needs to be enough to cover all your current debt obligations but should also be sufficient to cover a mortgage payment.
How do you determine how much you can comfortably spend on a home purchase in Vancouver? You can quickly calculate how much you can afford by calculating these two ratios:
- Determine Your Gross Debt Service (GDS) – Your GDS measures all the monthly debt you are responsible for paying relative to what you earn. Ideally, your GDS should be less than 30% to 35%.
- Determine Your Total Debt Service (TDS) – Your TDS measures all your debt, including your housing debt, relative to your income. Your TDS should be no more than 44%. A TDS higher than this figure can lower your chances of getting approved for a mortgage.
What Can Affect The Average House Cost In Vancouver?
Numerous factors can affect the average house price in Vancouver, including various features of the house and external factors such as the housing market.
House Features
Many house features can shift the cost of a house, including the following:
- Type of dwelling
- Number of bedrooms and bathrooms
- Square footage
- Age and condition of the home
- Layout
- Basement
- Finishes and features
- Size of the lot
- Location in the neighbourhood
- Parking
Historical Sales
Other features that can affect a house price in Vancouver are the economy and housing market. For example, the historical sales of comparable houses in the area will also impact the house price.
Generally, when houses are put up for sale, the listed price is based on properties:
- Similar to the subject property – Ideally, the properties listed should have the same number of bedrooms and bathrooms, be roughly the same size, be of the same type (such as a bungalow or two-story), and sit on a relatively similar lot.
- Sold in the recent past – Properties included in the list of comps should have sold no further back than 3 to 6 months earlier.
- Located in the same area – The closer the properties are to the subject property, the better.
Final Thoughts
Buying a home is a significant financial endeavour, especially when you’re spending the kind of money that the housing market in Vancouver commands. Be sure to do your homework, ensure your financial profile is strong, and team up with an experienced mortgage specialist and real estate agent to increase your chances of a successful real estate transaction.
Vancouver House Price FAQs
What other costs are involved when owning a home?
- Home insurance
- Property taxes
- Utilities
- Maintenance and repairs
- Condo fee (if applicable)
