30s Grind #6 – “I grew up here and recently moved back after having lived in NYC for 5 years. Vancouver is not a world class city which begs the question how prices are ridiculously expensive here.”

“I grew up in Vancouver and recently moved back from having lived in NYC for 5 years. By comparison, Vancouver is not a world class city which begs the question how prices are ridiculously expensive here. Real estate prices in world class cities are high due to their being international business and cultural centres where the residents get paid high salaries and the rich foreign investors from ALL parts of the globe keep the property prices high in a city where they want a piece of the action, know that housing prices will very very likely go up over time and the demand for real estate will always outweigh supply because it’s the IT place to be. (Even in NY after the 2008 debt crisis housing prices dropped a mere 15% initially and are now back up – it’s a resilient market due the make up of the purchasers drawn to the city itself). In comparison, Vancouver isn’t the heart of a ton of action, has a small business and cultural centre even compared to other Canadian cities, and the majority of foreign money is Asian or probably grow-op money – so it’s likely that once the economy in Asia softens or drugs become legalized, the price of property in Vancouver will fall as Vancouver’s small business and culture scenes couldn’t and (probably, at present, doesn’t) attract the masses with money from elsewhere otherwise. Quick question, i find greater Vancouver and the burbs to be an endless massive residential sprawl – what jobs are everyone doing? Am i missing something? Is everyone reverse commuting for work? ‘Cause the downtown is teeny weeny in comparison.”
Anon at thethirtiesgrind 8 Jun 2012 7:25pm

3 responses to “30s Grind #6 – “I grew up here and recently moved back after having lived in NYC for 5 years. Vancouver is not a world class city which begs the question how prices are ridiculously expensive here.”

  1. unique geography is one answer. With Vancouver, you have only a very small footprint of West Coast climate connected to a major international airport. Land links, same thing. So what does this do to people suffering from water cravings or water deficiencies in their personal energies? yup, Migration… to the one area that they perceive can support their Neptune illusions.

    You get this parabolic concentration of boomers, both internal and external (HongKong has similar fertility rates to Canada in the 1960’s, and China bounced back with a vengeance after their famine years 1959-61. I would even go so far to say that many of the HAMs operators are from this massive restocking of children @1962/63).

    There is a vicious cycle of debt spending that matches the abstraction of a geographically closed world, Vancouver and burbs… the sea is to the West… mountains to the North, and the USA border to the South. Feeling claustrophobic yet?

    Civilizations are birthed, grow, mature then die in a east to west rotation. You might have to read Toynbee to get up to speed with how Western Civilization … Canada and America’s West, and Vancouver in particular fits this rotation, and where we’re at:…

    • oneangryslav

      Then why have rental costs (inflation-adjusted) not increased for over a quarter of a century?
      The answer to the original poster’s question is simple: prices are excessively high here because of massive speculation. Without a real economy, Vancouver (and BC more generally) is susceptible to massive boom-and-bust cycles.

  2. So far, how is Vancouver RE sustainable? This city is full of criminals. You got kids straight out of high school getting into gang life and making some serious money. A few guys I know hit the 1 million mark by age 21. Tax free dollars here. All have nice homes and fancy cars. Combine this with Asians immigrating here, you have a whack load of people that pay no income tax but are rich. There is then equity built up in their homes and then they use that as leverage to either move up or buy another property. If the market slows, they don’t care. Why? Dirty money needs to go somewhere. You get it now? I’m not sure how long this is sustainable, but this is why the party is still rocking. A 12% decline had not been yet felt. It’s quit a lame and unreliable stat.

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