Quote:
Originally Posted by twoNeurons
Immigrants usually rent when they first get here anyhow.
Also doesn't explain why we have a record high months of Inventory of houses on the market.
Surely, with population increases... there would be fewer houses on the market.
I have no evidence to support this... but in boom times, my guess is that new housing starts outstrips demand to a large degree.
Anyone have any numbers on how much housing was added in the last 5 years?
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Your are probably right about the renting, but they have to live somewhere. Something has to give. You build more driving up the cost of the land. Someone is buying the houses/condos most likely investors and then renting them.
here's an example from New York,
Rent for $2000/ month 1200 sqft 2 Br 1 Bath
http://www.sublet.com/spider/supplyd...pplyid=1979608
Buying a condo same area
$4.1m, 2br, 2 bath
http://realestate.nytimes.com/sales/...-YORK-NY-10019
A 2br in my building the Social rents for around $2000. it is obvious to me that rents do not have to change at the same rate as the price of a house otherwise we should see rents alot higher in New York then you do. I know this was a quick sample but when you compare New York and Vancouver there are similarities.
1. Land locked or limited develop-able land
2. People want to live there
these 2 factors are huge when it comes to price of buying property.