Reply to comment

There's been a lot of speculation about why it's so expensive here. I've never been convinced by any one explanation. Some possibilities:

1. Speculation. A report a year or two ago by BC Hydro, the main source of electricity here, suggested that there were thousands of units using only enough power to keep a fridge running. Seems to have been discounted since, but there has been a lot of flippping.
2. Quality of Life. It is true that various polls and studies have consistently rated Vancouver one of the best places in the world to live. But they never seem to take into account the cost of real estate.
3. Foreign Buyers. Strikes me as a bit xenophobic. I've seen some suggestions that our rate of immigration has been relatively low through all of this.
4. Drugs. Some have said that drugs are a bigger industry in BC than forestry--and that's saying a lot. There may be thousands of undiscovered grow-ops, as well.
5. Real Estate Religion. This is mostly my idea: it's basically psychology. I have never lived anywhere that has had as much talk and press about real estate. It's become an obsession.
6. Low Interest Rates. This seems to have revived or extended the boom.
7. Mom and Dad. Inherited money, property passed on.

There are more, I am sure. Maybe it all adds up.

For some more information, see the 5th Annual Demographia International Housing Affordability Survey. It suggests that Vancouver was at an 8.4 multiplier. I've heard higher values.