Burnaby, BC: A Beacon of Urban Vitality

These past few weeks, we have been continuing our deep dive on various cities within the GVA. Last week we spoke about Surrey, British Columbia. Next on the chopping block is Burnaby, British Columbia. Let’s get familiar with Burnaby and what makes it so unique, aside from the facts that it is the hometown of many Canadian celebrities like Michael Buble, actors Michael J. Fox and Carrie-Anne Moss, ice hockey player Joe Sakic, and a national team soccer player Christine Sinclair.

Burnaby takes its name from Burnaby Lake, named after Robert Burnaby, an English merchant, politician and civil servant who travelled the area in 1859. Located in the center of Metro Vancouver, it’s the third-largest city in the province with over 249,000 residents. Burnaby's economic base has changed from logging and agriculture to service, commercial and industrial activities. Community, business and personal service industries account for approximately 27% of the City's employment, reflecting Burnaby's growing role as a diverse urban center.

The municipality of Burnaby received its charter of incorporation on September 22, 1892. In 1992, the City of Burnaby celebrated its 100th anniversary.

The earliest known human occupation of the Lower Fraser Valley dates to approximately 10,000 years ago, shortly after the retreat of the last glaciers. However, the present configuration of the Fraser River and the height of sea levels didn't stabilize until at least 5,000 years ago, creating the unique landforms and lush native vegetation of Burnaby. Burnaby is known for its beautiful surrounding natural environments and diverse culture—making it a sought-after place to live, work and play. With one of the highest open-space-to-resident ratios in North America, Burnaby has over 25% of the land designated to parks and open spaces.

There are over 107,046 private dwellings in the city. The most common are high rise apartments, or apartments that have more than 5 storeys, making up 29,715 homes. Already, this is looking different from the other areas in the GVA which we determined to show that the most common housing type was the single detached home. The second most common property type in the city is an apartment building that has fewer than five storeys, making up 23,835 homes. In third place we finally see the single detached home, making up 19,080 homes. The average household size in the city is 2.4 people.

The median household income is $83 thousand. The largest share of household income lays in the $150,000 and above range, with 20,980 households falling within this range. This month, March 2024, the average house price in Burnaby, BC is $1,057,181. This is in line with the average prices in the other cities of the GVA we have looked at so far.

Further analysis of Burnaby's demographics reveals intriguing trends, including a steady increase in average and median ages (42 and 40.4 years old, respectively), coupled with a notable decline in the average number of children per family (1.6). The prevalence of married and common-law couples without children surpasses those with offspring, while a significant portion of residents opt for solitary living arrangements, with 29,000 individuals residing alone.

B.C.'s recent introduction of a home-flipping tax has stirred controversy among economists and industry experts, with many expressing skepticism about its potential impact on affordability. The measure, aimed at curbing property flipping, faces criticism for its potential to deter real estate investment and tighten market conditions, particularly in the pre-sale market.

Some industry experts voiced concerns about the timing and efficacy of the policy, suggesting it may have been more suitable in previous years.

The new tax, similar to the speculation and vacancy tax, imposes a 20% levy on profits from selling residential properties within two years of purchase, gradually reducing to zero over the specified period. While exemptions exist for extenuating circumstances such as divorce or disability, critics argue that the tax could deter investment without significantly impacting flipping activity.

Data from the province suggests that only a small percentage of home sales in recent years qualified as property flips, prompting questions about the tax's necessity. Many transactions will be exempt from the tax due to various factors.

Despite the government's revenue projections, experts anticipate minimal impact on home prices and sales volume. However, concerns linger about potential market distortions and reduced investment in pre-sale projects, which play a vital role in financing new developments.

In the ever-evolving tapestry of Burnaby's story, these developments serve as a reminder of the intricate interplay between history, demographics, and policy in shaping the city's future trajectory. As stakeholders continue to navigate these challenges, Burnaby's resilience and vibrancy remain steadfast, anchoring its position as a beacon of urban vitality within the GVA.