The North American correction in property values post the 2008 financial crisis was due to two factors: 1) Increase in inventory levels as subprime borrowers tr

The North American correction in property values post the 2008 financial crisis was due to two factors: 1) Increase in inventory levels as subprime borrowers tried to exit their mortgage via a fire sale 2) Total shut down of the mortgage markets, meaning only cash buyers could get deals done. Given the profile of the typical buyer at the high end of the market in Vancouver, an outsized effect like the one described above is unlikely. These homes are not mortgaged and their owners have savings they draw upon instead of income from employment. Job losses a la 2008 do not affect them as much. For these reasons I doubt we will ever see the kind of corrections in Vancouver like we saw in places like Phoenix and Las Vegas in 2008. Finally, a somewhat normative question, what's wrong with cheap housing? I agree with you that ill-thought out planning is detrimental to the city's quality of life. But to me at least it seems that the planning and permitting process is overly restrictive.