A new study by Zoocasa shows that homes in Vancouver may be costly to buy, but they are cheaper to own than in other cities. Out of the 25 major cities studied, Vancouver has the lowest property tax rates which can more than offset the higher prices of housing in that city. The owner of a home with an assessed value of $1 million in Vancouver will owe just $2,468 a year in property tax, compared to $6,355 in Toronto or more than $10,000 in Ottawa.
On a pure property tax basis, Vancouver home ownership is also cheap in comparison to cities in the U.S. For example, the annual cost of owning a home in Vancouver with a property tax rate of 0.25% is roughly half that of Toronto (with a 0.64% rate), a third that of Seattle (0.84%), and almost a fifth that of San Francisco (1.16%). So, for foreign buyers, Vancouver is a relatively inexpensive place to park money. This has been a significant incentive for speculative investment, especially in high-end homes and in turn, it is likely a historical factor that has driven up home prices over the past twenty years.
Residential real estate prices have doubled in Vancouver over the past decade. This has put homes out of reach for much of the local population whose wages have not kept pace. The average home price in Vancouver is now a wicked ten times average household income.