I was recently asked to be a guest lecturer at the UBC part-time MBA program to speak on the topic of housing economics. It is a topic near to my heart given my previous tenure with BC Housing and my continued service to clients in the affordable housing sector. This class was most concerned with the real estate market, and whether housing prices in the Vancouver area were likely to stabilize.
The answer to the Greater Vancouver housing affordability is very simple: create more supply. Right now, there is approximately an 8,000-unit deficit in housing supply. That means that for every unit that comes to market you are competing with 8,000 other households to get it, and it will go to the highest bidder. That is the crux of the housing affordability issue. Projecting outwards using Metro Vancouver’s own figures for population and dwelling construction, there is no point between now and 2041 when there will be an adequate supply of housing units. This is why house prices are so high, and continue to rise. There is not enough to go around, and current policy - knowingly, willingly - continues to make it so.
#housing #realestate #vancity