>upzoned parcels of land increased in value by about 50% compared to the non-upzoned neighbourhoods, but because you could build 3X as much floor space on them, the cost of land per square foot of floor space fell by half.
Another angle here: the AUP upzoning increased the stock of 5-storey-zoned land, making it less scarce, hence the price falls.
Vancouver doesn’t have a housing shortage. If there was a shortage there wouldn’t be thousands and thousands of listings on the MLS. It has an affordability problem because the money is broken. Wealthy people store value in houses. Fiscal policies like the HBSP, RRSP loans, 5% down, $1.5m insured mortgages and the housing accelerator fund make it worse. The money printer made housing unaffordable. Fix the money fix the problem.
>upzoned parcels of land increased in value by about 50% compared to the non-upzoned neighbourhoods, but because you could build 3X as much floor space on them, the cost of land per square foot of floor space fell by half.
Another angle here: the AUP upzoning increased the stock of 5-storey-zoned land, making it less scarce, hence the price falls.
Vancouver doesn’t have a housing shortage. If there was a shortage there wouldn’t be thousands and thousands of listings on the MLS. It has an affordability problem because the money is broken. Wealthy people store value in houses. Fiscal policies like the HBSP, RRSP loans, 5% down, $1.5m insured mortgages and the housing accelerator fund make it worse. The money printer made housing unaffordable. Fix the money fix the problem.
Excellent points Russell!