Quote:
Originally Posted by whatnext
The notion that we can build our way to affordability has been thoroughly discredited over the past decade.
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You're showing a really fundamental misunderstanding of economics.
If supply increases but prices remain constant or increase, that implies that demand has increased as well. This is entirely plausible in Vancouver and it is consistent with bog-standard microeconomic theory.
P.S. Housing is an interesting case because supply can have large externalities (positive or negative) that also shift the demand curve.
The thousands of new housing units in Yaletown over the last 30 years put downward pressure on prices through supply, but they also put upward pressure on prices through demand by making Yaletown and all of Vancouver a better place to live.
Long story short, if additional housing has been built but prices keep going up, it's either due to unrelated changes in demand OR it's possible that the additional housing has made it a significantly more desirable place to be.