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For more on Vancouver read Ian Young’s Hongcouver articles in the South China Morning Post.
The US and Canada have a plentiful supply of land that could be developed. However, it is in homeowners interest to believe that we have an increasingly scarce resource that is becoming more valuable. Long-term, this will likely correct.
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This over-evaluation has been greatly distorted in some markets by international buying. Vancouver and London are the top two that I know of. Local’s salaries have not budged, but property values have skyrocketed as foreign money has come in. In both places, existing owners fight any regulations or policies that would contribute to reducing prices because they view this as winning the lottery.
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It’s scary when large amounts of the economy have suddenly become about rising asset values (ie real estate, art, classic cars) versus value creating enterprises.