Ron Matin
Residents living in West Vancouver, have some of the most expensive houses in all of Canada. This is without a doubt known to many people throughout not only Canada but other parts of the globe. Yet they are also the most likely to be mortgage-free in British Columbia. Why? Well, you’ll learn below…
Andy Yan’s data
According to Andy Yan, the head of Simon Fraser University’s City Program, who reviewed data from the 2021 census, 56 percent of West Vancouver households are free of mortgage debt. This is quite a significant proportion compared to the provincial average of 40 percent of Canadian homeowners and the 42 percent of homeowners who aren’t concerned about annoying & tedious monthly payments.
In addition to West Vancouver, Vancouver, and the North Shore, other areas in British Columbia have also seen many mortgage-free homes. The District of North Vancouver saw 44 percent of homeowners without a mortgage, while 39 percent of City of North Vancouver homeowners were mortgage-free.
Yan’s analysis of the data revealed that the proportion of mortgage-free households in these areas could be a reflection of West Vancouver’s older population. People who bought property decades ago before prices increased (because of inflation) and who are now in their retirement years are more likely to be mortgage-free.
According to the last census, those 65 and older in West Vancouver now make up 28.5 percent of the entire population, up from 27.8 percent in 2016. In the Lower Mainland, only White Rock and Belcarra have a larger percentage of seniors. On top of this, the Metro Vancouver average is now officially 17 percent.
Statistics of the real estate market
The average age of a West Vancouver resident is 47.6 years old, and the median age for the community is 50.8 years old, which is a full 10 years above the median for Metro Vancouver.
This means that millennials, those aged 25 to 40, make up just 10.8 percent of West Van’s population, compared to 25 percent in the City of North Vancouver or 23.1 percent of Metro as a whole. The “avocado toast” generation is also comparatively underrepresented in the district of North Vancouver, where they account for just 15 percent of the population.
However, Yan also believes that the mortgage-free contingent could include more recent purchasers whose global wealth is significant, for whom taking out a mortgage was not necessary to buy property. This is a possible explanation for why West Vancouver residents, despite owning some of the most expensive houses in the nation, are mortgage-free. According to Yan’s analysis throughout the province, 58 percent of homeowners have a mortgage versus 42 percent of mortgage-free homeowners.
Comparison Between Communities
After West Vancouver, the regional district of Powell River has the second-highest number of mortgage-free owners, at 54 percent. Sechelt is third with 53 percent. The three communities in B.C. with the highest percentages of mortgage holders are:
- Fort St. John,
- The City of Langley
- Surrey
Cities on the periphery of large census metropolitan areas, have a higher percentage of younger and new homeowners and have higher numbers of mortgage holders. However, these areas are also relatively more affordable compared to the more expensive areas such as West Vancouver.
Impacts within the real estate market
Professor Andrey Pavlov, a finance professor at Simon Fraser University, believes that this shows the impact on younger and lower-income people, who are now more impacted by interest rates than the average person. This information will without a doubt benefit the real estate market, as people will begin to go all over the market looking to purchase a house.
In conclusion, the data reveals that West Vancouver residents are more likely to be mortgage-free than other areas in British Columbia, which could be due to their older population or global wealth.
While other areas in the province have higher numbers of mortgage holders, they are also more affordable for younger and new homeowners. If you need any type of help within the real estate market of Vancouver, contact us. Overall, these statistics reveal a wealth divide between different communities in British Columbia.