Quote:
Originally Posted by D as in David
No but I imagine it kind of works like this:
Single-family homeowner sells their house - reasons are many like moving upmarket or downmarket, moving away, death, etc.
Developer purchases the property and builds two or more dwellings at market price. Some of these buyers are immigrating from outside of the province but many are moving upmarket and selling their house at a lower price point.
Their old property now becomes available to someone who can buy or rent at a lower price point. In the case where it is purchased by someone who wishes to dwell in it but a developer buys it and creates more than 1 dwelling out of it and the above process repeats itself.
By increasing supply at higher price points up to the point of what the market demands, the supply at lower prices increases.
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Maybe your scenario benefits the bottom if the gap between supply and demand wasn't so wide, and new dollar input wasn't so easily achieved.
The ability to actually develop the quantity of units under R-CG needed to have a tangible impact won't even meet the pace of current demand, let alone future demand that's increasing daily.
Doesn't mean it shouldn't happen, but it's only a sliver of the solution.