Car ownership becoming a luxury downtown

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VANCOUVER (NEWS1130) – Gas, tolls, wear and tear: It is no secret driving to and from work every day can be costly. But even when you live and work in the same city, car ownership is heading into luxury territory for many people.

If you buy a condo in Downtown Vancouver and you want a parking space, there is a good chance you are going to pay a lot for it. Fewer developments are offering an abundance of spots for vehicles.

An analysis in a Toronto real estate blog looked at parking, car payments or depreciation, insurance, gas, and maintenance. It found — even for Sunday drivers — the cost of ownership was $870 per month. That’s $10,400 per year.

“In my line of work, focused on downtown Toronto real estate, I meet many renters and younger home buyers who surprisingly still want a parking space with their one-bedroom or one-plus-den condo when they are on a budget. Many times, I have to remind them of the cost of a car in the city,” writes real estate agent Jason Tang, adding that $870 a month translates to an extra $150,000 mortgage or a whole lot of taxi rides, transit passes, and picking up a car anytime you want at your nearby car sharing lot.

Transportation expert Gordon Price with the City Program at SFU says the numbers are similar in Vancouver and that’s why many young urban professionals look at the other options.

“Income is the critical factor. After all, Tang is talking about people who are starting out — buying their first home — and he notes that if you are going to have a car, that is a big chunk of change when it comes to taking out a mortgage or what you could pay for otherwise. But the other part of it is whether or not you have a choice. You’ve got to get around. How realistic is it to use transit? Are things within walking distance? Is it possible to use your bike?” he asks.

“Now with car-sharing programs, more and more young people in particular have found realistic ways to get around. As a consequence, you can see they’re taking out licences less and they are not buying cars; they are finding substitutes,” Price tells News1130.

But though car ownership may have become a luxury for people living downtown, it is still a necessity in some other areas. For many in Metro Vancouver and the Fraser Valley, commuting by transit is not an easy option.

A recent study by the Pembina Institute found only 19 per cent of Metro residents live within walking distance of rapid transit, compared to 21 per cent in Calgary, 28 per cent in Ottawa, 34 per cent in Toronto, and 37 per cent in Montreal.

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