Real Estate

Vancouver housing bubble?

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Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
Motoss wrote: lol...I won’t even bother as you’ve been schooled on this many times.
It's not for you. Other people could learn some basic economics from trained economists.
https://www.theglobeandmail.com/news/br ... e37601341/
Thomas Davidoff and Tsur Somerville are associate professors in the University of British Columbia's Sauder School of Business. Joshua D. Gottlieb is an associate professor in the University of British Columbia's Vancouver School of Economics

More than two centuries of economic science shows that supply and demand factors are both crucial for determining prices.

From avocados to apartments, markets must use prices to allocate scarce goods to the consumers who want to buy them.

Increases in demand for housing come from many sources. These include rising incomes, cheaper and easier mortgages, a city becoming a more attractive place to live, new household formation and inflows of investor capital.

But for any increase in demand, the supply response determines how this demand affects prices. When supply can rise quickly, increasing demand leads to more output. This dampens price growth. But if supply cannot increase sufficiently in the face of rapid demand growth, price increases can be astronomical – as Vancouver and Toronto have recently shown.

Housing affordability in Vancouver suffers from both demand and supply-side pressures. Demand growth is high while both geography and regulation restrict housing supply. Of what land developers could use, zoning limits where and how. A long and arduous permitting process slows the supply response to increases in demand.
Increasing supply = more investment and jobs.
Decreasing demand = government messing in the markets.

Markets are better than government at allocating scarce resources. The NDP is pandering for votes because they want to stay in power.
Deal Addict
Dec 27, 2006
1958 posts
933 upvotes
zakarydoks wrote: It's not for you. Other people could learn some basic economics from trained economists.
https://www.theglobeandmail.com/news/br ... e37601341/


Increasing supply = more investment and jobs.
Decreasing demand = government messing in the markets.

Markets are better than government at allocating scarce resources. The NDP is pandering for votes because they want to stay in power.
Out of respect for others perhaps you could stop spamming this thread as we have covered this topic many many times.
Last edited by Motoss on Mar 1st, 2018 3:44 pm, edited 1 time in total.
Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
Motoss wrote: Out of respect for others perhaps you could stop spamming this thread as we have covered topic many many times.
Facts you don't like are spam. The topic of this thread is still the Vancouver housing bubble so if this topic is too boring for you feel free to browse other threads.
Deal Addict
Dec 27, 2006
1958 posts
933 upvotes
zakarydoks wrote: Facts you don't like are spam. The topic of this thread is still the Vancouver housing bubble so if this topic is too boring for you feel free to browse other threads.

Please - stop spamming!
Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
Motoss wrote: Please - stop spamming!
An article about the Vancouver real estate situation written by trained economists from UBC is spam?

Ok. Let's make a deal. I'll stop posting if you promise to get help.
Deal Addict
Dec 27, 2006
1958 posts
933 upvotes
zakarydoks wrote: An article about the Vancouver real estate situation written by trained economists from UBC is spam?

Ok. Let's make a deal. I'll stop posting if you promise to get help.
You are back to clogging up this thread again - just PM if you need some guidance.
Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
Motoss wrote: You are back to clogging up this thread again - just PM if you need some guidance.
I'm going to steer this away from me and back on topic. Feel free to have a discussion about Vancouver real estate.
Can more housing supply resolve the affordability crisis in Vancouver?

Thomas Davidoff and Tsur Somerville are associate professors in the University of British Columbia's Sauder School of Business. Joshua D. Gottlieb is an associate professor in the University of British Columbia's Vancouver School of Economics
"More than two centuries of economic science shows that supply and demand factors are both crucial for determining prices.

But for any increase in demand, the supply response determines how this demand affects prices. When supply can rise quickly, increasing demand leads to more output. This dampens price growth. But if supply cannot increase sufficiently in the face of rapid demand growth, price increases can be astronomical – as Vancouver and Toronto have recently shown."


Very interesting and it is very different from what some people feel.
Sr. Member
Feb 1, 2010
871 posts
173 upvotes
I don't really care about supply, demand, immigration, or anything else for that matter. I want everyone to pay tax because I have to pay a lot of income taxes. I am very happy that people who otherwise do not pay taxes are now paying something.
Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
quatchi wrote: I don't really care about supply, demand, immigration, or anything else for that matter. I want everyone to pay tax because I have to pay a lot of income taxes. I am very happy that people who otherwise do not pay taxes are now paying something.
I know it's hard but try not to dwell on fairness because every person has a different definition of fair. Concentrate on productivity. How do produce more goods that we want to consume?

Sometimes we wonder why Canada is so reliant on oil and real estate. We have all the natural resources in the world but a very mediocre GDP per capita. Talented individuals who are educated here gets siphoned into the US and Asia. Taxing the rich will not improve our situation. It's too much taxes and regulation on capital formation that is holding us back.

If we want tech jobs, we have to ask how do we get tech investment. The US has developed the model and China has copied it. In Canada, instead of doing what works we do this. Feds names five 'superclusters' that will share $950M in government cash. We all know this will become a super clusterf&@# and the billion dollar will go to friends of Trudeau.
Banned
Feb 23, 2009
1670 posts
1495 upvotes
Oshawa
Once again, there is no supply problem.
Speculators waiting to make a profit here in the GTA also.
Plenty of places sitting empty that can be made available with the right rules.
Deal Addict
Dec 27, 2006
1958 posts
933 upvotes
pkrash wrote: Once again, there is no supply problem.
Speculators waiting to make a profit here in the GTA also.
Plenty of places sitting empty that can be made available with the right rules.
Agreed - maybe best to just ignore him. He has been spamming and trolling all day. Unhinged ... comes to mind.
Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
Motoss wrote: Agreed - maybe best to just ignore him. He has been spamming and trolling all day. Unhinged ... comes to mind.
Are you talking about me again? This is what unhinged looks like lol.
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Sr. Member
Feb 1, 2010
871 posts
173 upvotes
zakarydoks wrote: I know it's hard but try not to dwell on fairness because every person has a different definition of fair. Concentrate on productivity. How do produce more goods that we want to consume?

Sometimes we wonder why Canada is so reliant on oil and real estate. We have all the natural resources in the world but a very mediocre GDP per capita. Talented individuals who are educated here gets siphoned into the US and Asia. Taxing the rich will not improve our situation. It's too much taxes and regulation on capital formation that is holding us back.

If we want tech jobs, we have to ask how do we get tech investment. The US has developed the model and China has copied it. In Canada, instead of doing what works we do this. Feds names five 'superclusters' that will share $950M in government cash. We all know this will become a super clusterf&@# and the billion dollar will go to friends of Trudeau.
With all due respect, money is flowing into RE at the expense of other industries as it is a protected asset by government regulations and tax policies. If it was treated the same as any other investment, it would have less demand. Taxing foreigners so taxes on local productive workers and business can be lower does help make Canadians more productive and will stem the flow of talent to other locales.
Deal Addict
Jan 14, 2009
1675 posts
664 upvotes
Vancouver, BC
quatchi wrote: With all due respect, money is flowing into RE at the expense of other industries as it is a protected asset by government regulations and tax policies. If it was treated the same as any other investment, it would have less demand. Taxing foreigners so taxes on local productive workers and business can be lower does help make Canadians more productive and will stem the flow of talent to other locales.
That is classic left wing government doctrine. Economic planning has a very poor track record. I'm not optimistic that it will work but we can keep trying and see what happens.
Sr. Member
Feb 1, 2010
871 posts
173 upvotes
zakarydoks wrote: That is classic left wing government doctrine. Economic planning has a very poor track record. I'm not optimistic that it will work but we can keep trying and see what happens.
Alternatively then, don't tax my salary and investment income which generates my rent. Ridiculous that one is a tax shelter and the other is taxed at marginal rate. Even more ridiculous is that foreigners can access the tax free route over citizens who vote.

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