Quote:
Originally Posted by Caliplanner1
A case can be made that improved regional transit can help precipitate lower housing costs (at least over the short-term) as "distant" marginal residential areas are made more accessible to downtown Vancouver and other centers of employment!
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Granted, I only took first year economics, but I think it makes it more expensive. Making anything more attractive raises demand and raises price, unless you raise supply by more.
Prices are "low" in certain parts of metro Vancouver because they are a 🞵🞵🞵🞵🞵 to get to. When they get easier to get to, they become more attractive places to live to more people. More people want to move there, so there is competition for those cheap places, which drive up prices.
It definitely helps people who live there already. People who bought in at low prices (thus have a fixed housing cost) but high travel costs, will get lower travel costs, and save money overall. But if they rent, they will now face competition in the form of people who want to move there.
Maybe the people now looking to move to a new transit area currently have high rents some place downtown, and are actually downgrading. But moving from a $1000/month tiny apartment to a $900/month larger apartment (that used to be $700/month before transit) isn't really freeing up income that can be disposed of in the economy, and actually more of GDP in the region is being dropped in housing than services.