It’s not a secret; Vancouver is one of the World´s least affordable cities, and it seems to be the only thing on Vancouver’s minds for the past decade. We blame foreign investors, lack of available housing, money laundering, our governments and almost anyone we can.
However, we are missing something fundamental that links all these ¨causes¨ together.
One Critical Cause We Are Overlooking
Why is there such a high demand for a specific city when our Province is bigger than most countries?
Why does it only seem like people can live in Vancouver and nowhere else in the Province?
Foreign investors flock to expensive Vancouver over more affordable cities such as Victoria, Kelowna, Vernon or Kamloops. People born and raised in Vancouver refuse to move, even though they claim to be unhappy and to be pushed out of their “city” by increased rent. People from all over the country move to the Lower Mainland despite knowing its lack of affordability.
The reason for the madness:
Most people don´t want to move anywhere else in British Columbia because they believe there is nothing outside the Lower Mainland and a lack of economic opportunity in the rest of the province.
Why do residents in the Lower Mainland think this?
Let´s look at a personal example of mine.
I was born and raised in Vancouver, 15 minutes from downtown. I moved to Switzerland for economic opportunity (Schooling at one of the best Hospitality Management Schools in the World), which is currently unavailable in Canada.
The University is in a village of 300 people and a 2-hour drive or 3-hour train ride to the nearest international airport in Geneva.
I left for an internship in Barcelona, again for economic opportunity, with a population of 1.6 million. Then, I moved to a resort town 140,000 for a semester abroad.
After my time in Spain, I had the choice to move back to the village of 300 people, with a post office, three overpriced mediocre restaurants and an international airport, which was a 2-hour drive away, or I could move back to the Spanish city of 1.6 million, filled with world-class restaurants, entertainment, beaches and an international airport 25-minute drive away.
The choice was a relatively easy one to make. Spain it is.
This is a European example, but British Columbians face a similar dilemma every time their rent increases and their living expenses skyrocket.
The Common Vancouverite Dilemma
British Columbians can move to Vancouver, an incredibly international city filled with some of the best restaurants and cafes in the country, large malls and shopping areas, beaches next to downtown, an internationally recognized sports team and a stone’s throw to a world-class award-winning airport.
Alternatively, they can move, for example, to Victoria, which is smaller and has historic charm but with similar unaffordability issues to Vancouver. They could move to Kelowna, which has a small international airport and some city amenities. They can move to Kamloops, known as the tournament capital of Canada (i.e. ice hockey), with limited city amenities and job opportunities.
Smaller city living can be excellent, yet a large population of Canada wants to have economic opportunities and access to a lifestyle that is only available in large international cities. Many people would never consider Kelowna, Victoria, Kamloops, or other smaller cities in British Columbia a viable alternative to Vancouver, resulting in an affordability crisis in Vancouver.
It’s not just foreign investors buying all of Vancouver´s housing; it’s Vancouverites’ attitude towards other cities in B.C., notably smaller cities. The lack of international city amenities and economic opportunity in other areas has reduced emigration from the Lower Mainland to other parts of B.C.
Not to insult the beautiful and diverse towns of British Columbia, but this is the reality. We only have one international city with amenities and economic opportunities that are on par with other global cities in foreign countries. Vancouver is the only BC city competing with other global cities for job opportunities and international amenities.
The Solution
Vancouver wasn´t always an international city. Instead, it developed into a renowned city thanks, in part, to the Expo 86´ and, later, the Vancouver Olympics. Because of these world events, Vancouver received a large amount of investment capital from governments, companies, and investors, which was used to improve, develop and expand the city for an international audience.
From this, we can see the requirements other British Columbian cities need to compete with Vancouver:
British Columbia´s smaller towns and cities need investments from businesses, governments and private citizens to increase the amenities and economic opportunities it provides to its inhabitants and increase the number of inhabitants away from overpopulated Vancouver.
Over-Developed Neighborhood Theory
People move to other neighbourhoods if a neighbourhood gets too expensive due to demand in the area surpassing supply. This emigration brings the establishment of new cafés, entertainment venues, restaurants, and shops in different places because of the increased population and income bracket. This is also called gentrification. The result is that another neighbourhood develops, attracting more people than before, and the cycle continues.
Think of Vancouver as an overdeveloped neighbourhood. The natural next step is for people to leave and turn other cities and towns into beautifully developed ones filled with new restaurants, cafes, shops, and entertainment, which creates more jobs and brings more people into the area. Then, as a result, the city will become more sought after, and the cycle continues into surrounding towns.
Increased Populations and their Effects
We already see increased populations in British Columbia and other small cities across Canada. Kelowna and Victoria have seen an increase in inhabitants over the last decade, most of which is due to Vancouver´s unaffordability.
Due to the increased population moving outside Vancouver, we are seeing new businesses open or move to these cities, creating more amenities and jobs in the local area. This economic boost creates more amenities, services, and opportunities for people in the area and, therefore, attracting more people to the area. As a result, the non-Vancouver cities have more appeal for people looking for a career, services and housing when priced out of Vancouver. There is also the added benefit of local governments having more taxes to develop their region.
It will take at least a decade or two to fully see the effects of developing other towns and cities in BC to reduce the Vancouver housing crisis. Still, it’s a natural solution that I feel has not been openly discussed as part of the solution to the housing crisis in Vancouver. Simply put, another way to fix Vancouver’s housing crisis is to make the rest of British Columbia very attractive to people looking for city amenities, services, and jobs, just as Vancouver has.
Initially written in 2019, updated in 2024
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