Quote:
Originally Posted by fredinno
http://dailyhive.com/vancouver/bc-va...-november-2018
...Why? This is just going to cripple supply. Ask the Venezuelans how well price controls on basic goods went.
The NDP should just wait for the real estate market to cool down, and let the free market do the work of cooling down rentals. Rentals can only decrease in price when house prices fall as well.
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Unlike other places Vancouver is quite unique because rents and prices did not rise in parallel. Rents only rose greatly recently when supply went below 1%. However many blame high rents on high real estate prices and believe lower prices will lower rents. Given the lack of supply I see lower prices leading to less development/supply creation and therefore higher rents but this is a personal opinion.
A lot of renters believe that the owner should make money off the increase in house value and lose money on the rent. There in for a rude awakening now that the market has stopped booming. Land speculation was helping to create tons of rental homes and now that it’s slowed rental supply is going to tank as for profit rental is impossible with our rent controls and low rents. If rent supply tanks expect to see large price increases for low tier rentals as competition rises over the minimal supply.
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