According to one market observer, the most important factor affecting Vancouver’s housing prices in the time of COVID-19 is immigration. Approximately 85% of the metro area’s recent rise in population was due to immigration. Global travel restrictions will reduce tourism, which in turn will hurt the Airbnb market and force many owners to sell properties. Government response actions could prove to be insufficient. Ultimately, the long-term impact of the pandemic crisis on housing prices is very difficult to predict.
- Global travel restrictions threaten immigration, which accounts for most of Metro Vancouver’s recent growth.
- Declining tourism will reduce Airbnb rentals, a source of income for many property investors.
- Government measures may not be capable of limiting the impact of the slowdown.
“And despite the optimistic post-coronavirus scenarios offered by multiple observers, predicting the long-term impact on the relationship between immigration and housing prices will be trickier.”