Quote:
Originally Posted by Rutuu
It is interesting that so many people think it can't go up forever...and they're kinda right as there is a lending limit for two salaries, but they don't envision the scenario where wages cap the total spend but developers come in and start cutting properties up into "right sized" blocks, be it infills or condos. All of a sudden there is inventory that can rise in price again to what two salaries can cover.
Can't afford a 6000sqft lot...well subdivide it and put two houses on it. Houses cost ~$400k, and the $1.2m property is now two 3000sqft properties valued at $1m with room to run. If its a younger area, put townhouses or condos on that property and get the units into the $650k - $800k range.
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This is exactly what's happening.
Vancouver passed a zoning change about 2 years ago that now allows pretty much every single family lot in the city to be zoned for duplex building.
We are starting to and will continue to see the decrease of single family housing and replaced by 2 homes on the same lot.
Other areas are zoned for townhouses which gives even more homes per lot.
Families will adapt to living in these semi connected housing types if they want to stay in Vancouver (which aren't bad at all).
The single family dream is just too difficult for most incomes and should rise even further as more houses become duplexes/townhouses.
The supply of single family homes is only going down.