Quote:
Originally Posted by junius
What about cheap credit combined with rabid speculation?
Everyone talks about this but I would really like to see a proper analysis of the subject. How much of a factor is land prices when people are more and more accepting of living in a dense urban environment? Vancouver has not added any new land in a century but has added significantly to the population due to densification.
While I agree that land prices are a factor I somehow feel they are often overstated or at least relied upon to dispel any belief in a possible price bubble in the lower Mainland. San Francisco has similar geographical limitations and its market crashed in the past 3 years. Oh, and it is pretty too!
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Land prices are overstated. I think the "we have no room to grow myth" has a more psychological effect on the psyche than any real physical barrier. Ironically, it's this idea that keeps people justifying the higher prices here.
If we opened up the entire ALR today to housing, doesn't anyone here think that prices would drop more than a single percentage point?
There's plenty of open space to build houses on in Surrey and Cloverdale. There's no shortage of land out there... and yet prices are pretty much on par with inner suburbs.
Prices are where they are for many reasons. But people will only buy if they think prices are affordable, or they think that even if it's not affordable, prices will go up faster than inflation, so they're saving money by doing it earlier. Of course, there's more to it, but when you're inundated with surveys proclaiming Vancouver as the world's "most livable city" all the time, it can get to you.
One thing I've wondered, is that if Metro Vancouver amalgamated, and all of the Metro was included in the rankings, I wonder how well this city would fare.
I think these surveys focus on the 200,000 or so people who live in or around the downtown peninsula / False Creek when it is talking about livability.