The Vancouver RE bubble has had profound overt and covert negative effects on our society. In response to a discussion on divorce and RE, this anonymous poster shared some ideas about the social effects of the bubble bursting. -vreaa
“It has been shown in both the UK and US downturns that divorce rates drop when assets are underwater, and rise when values are excessive, particularly amongst higher income individuals. Few people want to “split” a short sale or negative equity. So this coming crash might be good for our divorce rate, as more couples are forced to stick it out and share both the “good” and the “bad” times.
This coming crash might not only enhance the affordability of housing, but in doing so, it might:
• eliminate the perceived class divisions between owner and renter in Vancouver;
• slap the smugness out of real estate agents who make big bucks for “knowing” that prices always go up;
• make people realize that wealth comes from hard work, savings, and prudent investments;
• undermine the sense of entitlement of many generation Ys and Xs and the instant gratification endemic to our society;
• erode the rampant materialism where one is judged by the sum of their possessions as opposed to the strength of their character;
• enhance the mobility of the workforce, and hence economic productivity, as more people decide to rent and move to where the jobs are; and
• force loved ones and families to focus on the important things in life – friends, family, love and laughter
I don’t know about you all, but I see this coming crash as a social, economic, and psychological “cleansing opportunity” and I am pretty excited! There might be some short term pain for some families and individuals, but in the long term, I think it can really strengthen the moral foundation of our society.
Call me an optimistic bear.”