logo

Housing Cost in Vancouver: Policy Measures to Regulate Demand

Assignment for MAE101 course on Economic Principles in Trimester 2 2018, requiring students to describe, analyze and apply key microeconomic concepts, explain and interpret economic tools, and obtain and present information and data related to a real-world issue.

9 Pages1317 Words358 Views
   

Added on  2023-06-07

About This Document

This article discusses the factors contributing to the increased housing costs in Vancouver and the proposed policy measures to regulate demand. It also compares the housing situation in Australia. The article suggests that the government should prioritize housing affordability and formulate proper policies to address the issue.

Housing Cost in Vancouver: Policy Measures to Regulate Demand

Assignment for MAE101 course on Economic Principles in Trimester 2 2018, requiring students to describe, analyze and apply key microeconomic concepts, explain and interpret economic tools, and obtain and present information and data related to a real-world issue.

   Added on 2023-06-07

ShareRelated Documents
HOUSING COST IN VANCOUVER 1
HOUSING POLICY IN VANCOUVER
Name
Professor
Institution
Course
Date
Housing Cost in Vancouver: Policy Measures to Regulate Demand_1
HOUSING COST IN VANCOUVER 2
1. Vancouver is grappling with the increased costs of housing and this has pushed
out a large number of residents. The increase in the housing costs has caused distress to
the youth who are not capable of getting rent easily and hence they live under the
assumption that they will never have a home of their own.
The politicians, on the other hand, have discovered that Vancouver is so
expensive in terms of housing and therefore they are yearning to tax the real estates of the
region into submission and the homeowners think that this will be the best idea that has
ever been employed.
The problem of the increased cost of housing is brought about by the attraction of
Vancouver itself, the climate of the place and the immigration policies in Canada
(Dougherty, 2018).
2. The supply-side factors that have contributed to the worsening of the situation in
Vancouver include a) the Canadian liberal immigration policies that have led to many
buyers accessing land in Vancouver.
b) Provision of subsidies and the steps taken to ensure that the tenants are not
overcharged.
c) Protection of the tenants to make sure that they are not mishandled and
overcharged by the homeowners (Dougherty, 2018).
d) Taking measures to enable developers to build houses fasters and hence solve the
issue of the shortage of houses and increased housing costs.
The demand side factors include:
a) The demand for housing
Housing Cost in Vancouver: Policy Measures to Regulate Demand_2
HOUSING COST IN VANCOUVER 3
b) Growth in the economy that has seen increased income for the residents of
Vancouver who get their income mostly from abroad (Dougherty, 2018).
3.
a) As it can be noted in the diagram, the steeper demand curve is for the owner-
occupiers whose demand appears steeper and more inelastic. Due to the inelasticity, the
prices go up and the quantity demand is low. For demand two, the demand curve is less
steep and more elastic, for our case, this curve represents the demand for land owned by
the investors. Here, the higher the prices the lower the demand (Dougherty, 2018).
Housing Cost in Vancouver: Policy Measures to Regulate Demand_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Why land price is high in Australia cities
|5
|784
|45

Victims of Australia's Property Market: An Economic Analysis
|11
|531
|455

Demand For Houses In Australia Report
|5
|548
|51

Supply and Demand of Houses in Australia
|8
|1431
|466