>at least in the us they are mentioning how development companies scaled back in 2008 and they are still ramping up construction That's in the US. Canada wasn'

>at least in the us they are mentioning how development companies scaled back in 2008 and they are still ramping up construction That's in the US. Canada wasn't hit anywhere near as bad by 2008, and Vancouver construction rebounded very quickly. With the way real estate has been skyrocketing since 2009, it was inevitable. >This is a bit mindboggling: flood of foreign does not explain the global effect very well. I'm not talking about the global effect, I'm talking about Vancouver, where prices have become so decoupled from local wages that you need to earn twice the median family household income just to afford the average home (I'm including condos in the definition of "home"). >flood of foreign money into a city like Vancouver could be helping a lot in its economic development And it could also hinder its economic development if there's too much. The only question is whether or not there's too much. Given the completely out-of-whack salary to cost of living ratio, I'd say we hit the "too much" point a long time ago. I don't think there's anyone familiar with the area who says otherwise at this point, including the infamously, intentionally out-of-touch government. >we still dont know why a rich person would buy a property and never rent it out if he doesnt plan in living in it Right now, we can only speculate thanks to the government shoving their fingers in their ears and refusing to admit there's a problem. But there's a few key factors that help us make informed speculation. First, we know from the Panama Papers that Vancouver real estate is being used to launder and hide money. You don't rent out your tax shelter or money washer to some rando off Craigslist. Second, having a tenant delays sales by at least two months (that's how long an eviction without cause takes). That's a LIFETIME in Vancouver real estate. Third, in the last few years, asset appreciation means you're gaining more money on paper just by holding onto the real estate than you could ever hope to collect in rent. Even if you pay a property management company to deal with everything, it's still a non-trivial amount of work for comparatively little gain. Fourth, it sounds nuts, but in Chinese culture, a home that has been lived in sells for less money than one that has never been lived in. Something about feng shui, which is still such a big deal in China that it's made its way into Vancouver real estate. Hell, until the city council put a stop to it due to the logistics issues it causes emergency crews, buildings were going up that didn't have floors with the number 4 in them. 4 is associated with death in Chinese culture, and apartments with the number 4 don't sell as quickly.