As Victoria Job Boom Escalates, Millenials’ Window for Home Ownership is Closing

Victoria: No Longer Just a Place for the “Newlywed and the Nearly Dead”

Speak to any local resident of our beautiful island, and you’ll hear one recurring theme: Victoria is the best place to live in the world. With a faint remnant of colonial British culture and a plethora of modern influences from around the world, the capital city of beautiful British Columbia is a unique island paradise that continues to draw people from around the world.

Victoria has long been a popular destination for retirees and university students, and for decades held a reputation as being a city for the “newlywed and the nearly dead,” with nothing to draw in the working age crowd.

However, that’s all started to change. Victoria is now a hotspot for jobs, to the point that some companies have tapped out the local market and are needing to hire from outside of the province.

Nowhere is this clearer than the tech industry, which has been a key factor in drawing 23,000 individuals to Victoria between 2011 and 2016. (Source: The Star)

Canada’s Lowest Unemployment Rate… Victoria?

As the country experiences a loss of jobs, bringing down the unemployment rate to 6.6%, Victoria has the lowest unemployment rate in the country at 3.9%. This boom in jobs has had a ripple effect throughout the local economy, as the increase in tech jobs brings with it an increase in demand for commercial buildings, as well as health care and social assistance programs. (Source: TC)

This job boom is only just beginning though. Victoria is well known for its aging population, with 55,000 residents between the ages of 55-64 (Source: Citified). This is the demographic that is quicky approaching retirement, meaning in the next 5-10 years there will be a massive demand for workers in every sector. These baby boomers hold the bulk of middle and upper management positions in both the public and private sector, meaning Victorians need to prepare for an increase in demand for skilled labour across the board.

How is This Affecting the Housing Market?

We’re starting to feel the effects of these changes as the influx of working individuals strains the already taxed housing market, which forecasts indicate will elevate the square foot price of housing from $650 to $1000 by mid 2018.

According to Darien Verbrugge of Victoria’s Condo Group, this drastic rise in the cost of housing is causing people to consider shifting to ownership, as first time home buyers are “recognizing that home ownership may no longer be within reach in a year or two, and they’re committing themselves to making a purchase work whereas a year or two ago they were perfectly content with renting.”

Verbrugge encourages people looking to get out of the rental market, saying “Yes, you need a down payment for a condo. Yes, you may have to forgo some of your monthly expenses. But if home ownership is your goal, there are ways to make it work.”

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