Evidence that Foreign Buyers Aren't to Blame for High Housing Prices

Vancouver's exploding housing prices are caused by income inequality, housing scarcity, and a housing bubble, not by foreign investors and vacant housing units.

1 minute read

July 7, 2017, 7:00 AM PDT

By Michael Lewyn @mlewyn


Vancouver

Josef Hanus / Shutterstock

This post by Dan Bertolet discusses the rising home prices in Vancouver and Seattle. In particular, it rejects a common claim: that Vancouver's home price explosion is caused by foreign investors who buy units and then leave them vacant. In fact, the City of Vancouver regularly "assesses 'non-occupancy' based on abnormally low power consumption. The study concluded that between 2001 and 2014 the non-occupancy rate in city of Vancouver has remained flat at just under 5 percent, and that the city rate is consistent with the rate for the entire Vancouver region." 

So what does cause Vancouver's problem? Bertolet points out that the number of families earning over $250,000 has increased by over 20 percent in recent years, thus increasing demand for high-end housing. In addition, the city's high ratio of home prices to rents suggests a housing bubble—that is, people are willing to pay more for housing because they think housing will continue to become more expensive. Seattle home prices are rising less rapidly, due to the fundamentals that often cause home prices to rise: job growth and income growth. 

Wednesday, July 5, 2017 in Sightline

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

May 1 - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

May 1 - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

May 1 - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.