Quote:
Originally Posted by mousquet
When real estate gets to this point, it's worth building real bigger things, while Vancouver has been kinda shy.
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There are a bunch of factors, some obvious, some not. Building is maybe 20% of what is going on and building alone could not solve the problem.
- Vancouver is isolated and there aren't a lot of alternatives if you have local connections here. Either you pay a lot or you start over. Even rural BC is expensive.
- Canada is very open to foreign capital flows and immigration and so many people buying real estate here don't have a lot of affordable alternatives (may be somewhat wealthy but not allowed in the US or Europe).
- Because the prices went up so much there is a fear of missing out and a sense that housing will generate $$$. Buy for $1.4M now, sell for $2.8M later. People have been skeptical about high prices here forever, and lots of people got locked out because they didn't buy.
- There are a lot of restrictions that aren't NIMBY based but have to do with agricultural land or approvals for infrastructure. Any long-distance transportation here is abysmal by developed world standards. This also makes people want to pay more to be in a better location.