New data provided by urban planner Andy Yan suggest that supply alone isn’t the reason for Vancouver’s lack of affordability, according to the Globe and Mail. Yan used Canada Mortgage and Housing Corp. data and found that Vancouver has a lower ratio of new residents to housing supply compared to other cities.
UBC economist Tom Davidoff agreed the data is useful but he told the Globe that “there is a significant role for supply.”
He speculated that Yan’s findings could indicate, instead, that population growth is low because there isn’t enough housing.
Davidoff added that the 15-per-cent foreign-buyers tax is a good idea.
“Moving the tax system around so that if you are working here means you do better – and if you are buying a house here just as [an] investment means you do worse – is unquestionably good policy. It’s not the exact step I would have taken, but I have not heard any economist say, ‘This sucks,’” said Davidoff.