On the other hand, much of what makes Vancouver liveable has little to do with the city and more to do with the province and country. Get out of Vancouver, to Squamish, Chilliwack or even to Bowen and you can afford to work.
Wages in tech are low compared to the major US tech hubs. That can be an advantage if you contract for US companies as I've been doing recently tho.
Historically housing also tends to underperform the stock market when you take all costs into account (taxes, maintenance, strata fees, etc.). It's also a highly illiquid asset and tends to correlate with economic conditions (e.g. in an economic downturn you risk losing your job and facing a negative equity trap to move to find another one).
Some people derive enjoyment from owning their own home and if that's the case then maybe the financial downsides still make sense for them. For me I'd rather not have any of the hassles involved with home ownership and let my landlord deal with them. Personally owning a house seems like an unappealing prospect and it would have to be not just a neutral financial decision but a heavily net positive one for me to consider it.
The savings can be used to fund investments which make you more money.
In TO and the surrounding areas a fully detached houses start around 750k, and in the core can be way more expensive. Average home price is heading (or is over) 1m CAD. I can get a shoe box condo (1b/studio) in the "close" burbs for mid-high 200-300k.
A real house, detached that is nice, about 1.5 hours away approaches 200-300k.
Being a home owner you have to be in the market once. One good rational decision and you are set. Being a renter means being the buyer all the time. At least for me I dont want to spend the extra time to learn the skills to be an expert renter and try to outsmart the landlord year after year.
[1] http://www.cbc.ca/news/canada/british-columbia/vancouver-ren...
In the modern world I know of very few home owners who are in the market once. Most people have housing needs that change over time: marriage, kids, job changes (wanting a shorter commute), changes in financial situation. It's generally easier to adapt to those quickly as a renter.
Nowadays I tend to go for furnished rentals. I don't have any more desire to own most of the contents of housing than I do to own the property. That means moving is relatively low cost and effort if my housing needs change.
I mean it's difficult to get work visas unless you have an essential skill, and companies don't want to hire people without interviewing them in person. With Washington so close, companies can interview highly skilled individuals without spending a fortune on airfare.
Conversely, you're not going to get a lot of unskilled immigrants and you need to compete with the wages of your neighbour. It almost seems like the gentrification problem would be terrible.
I grew up near Vancouver and am currently working in Germany because I was getting better offers among other reasons.
No they don't. Nobody earning 20$/hour moves to vancouver. Those who do earn low wages have roots in the city. They started renting before the rise (and now live in fear of their landlord selling). Or they bought 20+ years ago and are now sitting on a pile of equity. Or they are living in a friend/parent's basement. Such people are established in the city. The low-pay stranger isn't welcome in Vancouver.
[1] http://www.cbc.ca/news/canada/british-columbia/vancouver-ren...