On the sleepy West Coast, despite the spin coming out of city hall, Vancouver remains a backwater when it comes to attracting or developing corporate headquarters.
Planners blame a lack of housing affordability, which discourages companies from setting up shop here. Civic politicians point fingers at our obsession with cyclical resources such as forestry and mining, rather than trying to grow the small, but emerging green economy.
At the end of the day, most homeowners are not fussed about a lack of a corporate presence here in Metro Vancouver. But they should be. Compared to Seattle, which generates significant tax revenue and jobs from industry titans such as Microsoft, Boeing and Starbucks, we are bit players.
Our jobs and growth plan is based upon condo development and land speculation. However, take that away, and our local economy is as emaciated as your average catwalk fashion model.
For far too long, we have associated new condo towers with rising property values. In other words, our region has convinced itself we don’t need jobs to increase our personal wealth — we merely need a hot property market.
It is painfully obvious we have lulled ourselves into believing we have a “real” economy. The sad reality is we are only one real estate crash away from finding out that we don’t.
Speaking of real estate and the slowing market, Landbaron over on VREAA notes that when you a 'Vancouver' craigslist rental search, over 10 pages of 100 rental listings are returned on March 28th alone.
As VREAA notes:
The idea is that some properties held empty (speculating upon future price gains) start coming onto the market as rental properties if they cannot be sold for the ‘right price’. That way, when the crash comes, an entire extended families RE holdings go underwater, rather than one home being battered with a price drop.
Multigenerational wealth destruction.
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