How The Ultra Rich Are Making It Harder To Fix Vancouver’s Housing Crisis

Unaffordability is determined but on individual viewpoints of people and for wealthy people. Expensive homes are considered to be more desirable but for those who cannot afford to live in expensive regions such as Vancouver, yet decide to reside there for various reasons most especially for work find it difficult.

High home prices poses as a big threat for young people trying to enter the market or for those that delayed buying a home before home prices escalated.

This leaves many to wonder if they are in the right city or what will happen if rental cost increases to a point they cannot afford. But all these issues makes little difference to the ultra rich people who also resident in these cities. For rich people, the higher the cost of a home becomes, the more they are attracted to the home. The high Vancouver home prices do not prevent rich people from buying homes. Wealthy elites gain satisfaction from owing an expensive home including it in their social status.

This makes it very difficult for home prices to reduce as looking wealthy elite with more than one home, using one to reside and the other as investment will prefer home prices to escalate as it adds to their accounts.

This influence of wealthy elites on real estate has grown significantly global according to Knight Frank, a London-based real estate consultancy. From 2005 to 2016, the global figure of millionaire grew from 8.7 million to 13 million. The number of people described as “ultra high net worth individuals” also increase over 60%. The financial effects wealthy elites have over the global economy are quite significant.

This gives rise government’s in cities like Vancouver to come up with measures to reduce on the effects on wealthy people on the real estate market prices.