Being one of the hottest real estate markets in the world, investors and homeowners in Canada are trying to cash in as much as they can. For one, they are tearing down old houses in exchange of a higher value home. The good news: some heritage houses in Victoria are being recycled to become affordable housing. The bad news: they are not for their own communities.
As reported by The Guardian, while Canada is experiencing its own housing crisis, heritage homes in Oak Bay, near Victoria, are being shipped to San Juan island in Washington, D.C. These old houses, built between 1910 and 1930, were cast aside as developers build bigger, more modern homes to meet the growing demand for such houses. They are to become part of a permanent affordable housing community in San Juan island that was launched in 2001 in a 5-acre land.
As Greater Vancouver becomes even more expensive, people are dispersing to Vancouver island and Oak Bay is one place they can get more with their money. As a result, house prices in Oak Bay have been increasing and more homes are being demolished to be replaced with pricier ones. Last year alone, there were 350 homes that were put down.
"If you have a bungalow which six months ago was worth C$600,000, they buy it, tear it down and build a house that is worth at least twice as much," said Cairine Green, a former Oak Bay councilor, told The Guardian. "We're not only losing these character houses, but the affordability factor is being pushed out of sight as well."
Demolition costs are also rising and one way to deal with it is to donate old homes. Nancy DeVaux of the San Juan Community Home Trust said that a recycle home costs $75,000 on the average, including their transfer to the island, plus some $150,000 for repairs and renovations. They can then be sold between $145,000 and $210,000 to residents of the island meeting the trust's threshold for low income.
