Corey and Stephanie Goudriaan are running into sticker shock in Vancouver’s suburbs during their quest to find a townhome or detached house.
The millennial couple, who have been priced out of the real-estate market within Vancouver’s city limits, are examining their options. Suburban prices are far from bargains. Even driving 60 to 90 minutes east of downtown Vancouver, the Goudriaans have slim pickings for three-bedroom places within their $500,000 price range.
A major challenge is coming up with a down payment, though they have some equity built up from owning a condo in Surrey, a sprawling city where housing prices are less expensive than in Vancouver. In 2010, they accumulated a modest down payment and bought a two-bedroom, 1,200-square-foot condo in North Surrey for $217,000. They have been making mortgage payments totalling $800 a month and have reduced their outstanding mortgage to $190,000.
While prices for detached houses have surged 65 per cent in the Vancouver region over the past three years, the market for older condos in their Surrey neighbourhood has been flat. Their three-storey, 51-unit complex was built in 1991.
“We could probably start a family in the condo but, at a certain point, it becomes a space issue. I really don’t want to be in a situation where we have a child and we can’t afford to move and we’re stuck,” Ms. Goudriaan says.
There were 526,000 residents last year in Surrey, accounting for one-fifth of the region’s population that has exceeded 2.5 million people.
Fast-growing Surrey is by far the region’s largest suburb. The community, located across the Fraser River, can be at least a 60-minute drive east of downtown Vancouver even before rush hour.
Parts of Surrey north of Highway 10, including an area near the Goudriaans’ neighbourhood, have a gritty reputation. But those are small portions of the community. And while South Surrey has become popular with young families over the years, townhouses there are selling for $700,000 – which is more than the Goudriaans wish to spend.
The trouble is that to find a suitable place within the Goudriaans’ budget of around $500,000, it would mean a long commute. Maple Ridge, Pitt Meadows and Langley are possibilities, though Abbotsford and Mission in the Fraser Valley would be too far.
“It’s a tough tightrope to walk. For quality of life, the commute to work would be unreasonable,” Mr. Goudriaan says. “I spend enough time in traffic as it is. It’s a matter of what sacrifices you’re willing to make.”
Generation Squeeze, a group representing the views of Canadian workers in their 40s or younger, estimates that based on assessments in 2014, only 15 per cent of properties with at least three bedrooms were valued at $500,000 or less in Metro Vancouver.
Ms. Goudriaan, 31, and her 35-year-old husband are willing to stretch their budget if needed.
Combined, the couple garnered almost $100,000 annual gross pay in the past. Even with that above-average household income, they feel shut out of Surrey for a detached house. They have seen young families move west to Vancouver Island or east to Chilliwack in the Fraser Valley to buy houses. Some of their friends and acquaintances devoted to Metro Vancouver expect to remain as long-time renters unless they inherit a large sum of money.
When public transit is on time, it takes one hour for Ms. Goudriaan to commute to her job as a paralegal in downtown Vancouver. She drives to a park-and-ride at a Surrey transit station, where she pays $3 a day for parking. Her SkyTrain transit pass costs $170 a month.
Mr. Goudriaan worked his way up from cooking duties to become a kitchen supervisor at a restaurant chain, making $21 an hour. He decided on a career change in early 2014 and began training to be a licensed plumber. His current job site is in Surrey.
Moving away from Metro Vancouver is an agonizing option, and they aren’t at the point yet where they would seriously consider moving to Alberta, where Mr. Goudriaan has relatives. Most of Ms. Goudriaan’s friends and family are in the Vancouver region. “It would break my heart to have a child and leave, with my 85-year-old grandmother here,” she says. “That weighs heavily on my mind. I feel like we’re in limbo.”
Even in North Surrey, the median price for detached houses sold is $820,000. The pair are aiming for a townhouse in an effort to avoid having a huge mortgage.
He leases a 2016 Mazda CX-5 to transport his plumbing tools and supplies to job sites in Surrey and other parts of the region. On weekends, his wife drives a 2001 Mazda 3 that was paid off years ago.
The couple would prefer to stay in Surrey to be close to Ms. Goudriaan’s parents, who live in nearby North Delta. They both graduated from high school in North Delta and have friends and family there.
On Vancouver’s east side, condos that recently sold had a median price of $440,000. That’s considered affordable by the region’s standards. But the Goudriaans are seeking a backyard now because they plan on starting a family. And their dog, Laycee, would benefit from the extra space too.
“To take on $400,000 or $500,000 worth of debt, people are becoming so desensitized to that. That is a huge debt load to carry,” Ms. Goudriaan says.
