A warning from Vancouver

Building more may not lower prices, and may actually raise them. Funny stuff, that real estate: instead of just supply and demand, there’s location, location and location, and other funny dynamics.  Who knew? Our much-envied big sister city in B.C., for one.

“The City of Vancouver is finally admitting that they cannot build their way out of the housing affordability crisis. The supply myth has been driving ever-escalating amounts of market housing, but affordability is getting worse, not better…

“The industry must be pleased that the same supply myth continues to be applied even though the city admits it doesn’t work. More expensive market supply will not make things more affordable. It will, in fact, continue to intensify the affordability crisis as millennials are demo-victed from their older housing and priced out of Vancouver. How many more times will the city do the same things expecting different results?”

“Housing reset — Supply myth exposed, but more of the same,” from the Vancouver Sun. A very thoughtful article, worth a full read.

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