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Laneway homes decrease real estate value in affluent Vancouver neighbourhoods: study – Vancouver Sun

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New research may help policy-makers and planners understand “NIMBYism” and just how density affects the housing market in affluent neighbourhoods

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A new study shows that privacy is more prized than even the gentlest density on Vancouver’s west side.

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Data from a study to be published in the Journal of Urban Economics shows that in more affluent areas, having a laneway house right next door can knock down your property value by 3.8 per cent, on average.

“The richer you are, even as a per cent of your home, the more you are willing to pay to avoid density,” said Dr. Thomas Davidoff, a housing economist at UBC’s Sauder School of Business.

The “laneway effect” is not as much of a factor for median and lower-valued homes. Although the study focused on property value, rather than neighbourhoods, most of the higher value properties hit by the “laneway effect” were on Vancouver’s west side.

“The adverse effect is significantly more negative on the west side, with a dip of five to seven per cent, but very little effect on the east side,” said Davidoff.

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The study  crunched data extracted from real estate sales records across Vancouver from 2009 to 2017, and examined sales prices of properties where neighbours had laneway homes.

“The really important finding is we do find negative spillover of building new density by single family homes, and that this effect is concentrated in the most affluent areas of the city,” said Davidoff.

Davidoff said the data suggests the loss of privacy is a factor.

“Physically, laneway homes are similar structures to garages, but it’s people instead of a two-car garage. You could get the sense that there is less privacy when your neighbour has a laneway house.”

“What this tells us is that about 75 per cent of us aren’t especially bothered if there are small increases of density around us, but for 25 per cent of us with the priciest homes, the loss of privacy is not OK,” said Tsur Somerville, associate professor in economics and real estate at the Sauder School of Business, and co-author on the study.

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“This crystallizes aspects of the opposition to increase density and helps us understand it better. If, for the social good, it is beneficial to have more of certain kinds of units, it’s worthwhile knowing why there is opposition to it,” said Somerville.

According to the study, a laneway house within 100 metres of a property on the West Side of the city was associated with a 2.8 per cent lower sale price on neighbouring properties. Houses immediately beside a new build with a laneway house sold for 3.8 per cent less, on average, than those beside new houses with a garage but no laneway home.

Among the highest price properties, having a laneway house next door led to the highest drop in value, at 4.7 per cent.

Vancouver homeowners and developers of new builds have added some 3000 laneway homes to properties since 2009, when the city made laneway homes a key component of their housing strategy, and rezoned 95 per cent of single family properties to allow the 1.5 story homes.

dryan@postmedia.com

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Canada’s Real Estate Bubble Is Getting Even More Irrational: US Federal Reserve Data – Better Dwelling

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Canada’s Real Estate Bubble Is Getting Even More Irrational: US Federal Reserve Data  Better Dwelling



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New Zealand Real Estate Investors Pull Back After Policy Changes, Price Growth Slows – Better Dwelling

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New Zealand Real Estate Investors Pull Back After Policy Changes, Price Growth Slows  Better Dwelling



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Real estate board donates to Inn of the Shepherd – Woodstock Sentinel Review

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Members of the Sarnia-Lambton Real Estate Board presented a cheque for $2,000 to the Inn of the Good Shepherd as part of Realtor’s Care Week celebrations on Nov. 19.

During the national week, local realtors are encouraged to do good turns in their community.

Funds given to the Inn will help feed the 170 individuals in the care of the Inn, up significantly since the beginning of the pandemic.

Representatives of the Inn thanked the realtors for their donation as well as for their involvement year round in activities such as the annual CANstruction fundraiser as well as food drives.

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