UBC Study Challenges Housing Supply as Solution for Affordability
University of British Columbia researchers argue that increasing housing supply has failed to lower costs in Vancouver and other major North American cities.
Researchers from the University of British Columbia released a study asserting that increasing housing supply has failed to lower housing costs in Vancouver and other major North American cities. The report, authored by Patrick Condon, Thomas Kroeker, and David Ley, analyzed data from 1961 to 2021 and found that rising supply correlated positively with unaffordability. The authors argue that domestic and foreign investment capital from speculators, rather than a shortage of units, is the primary driver of high prices.
These findings contradict the supply-side strategies promoted by B.C. NDP leader David Eby, the Vancouver City Council, and various municipal leaders. These officials maintain that deregulated zoning and increased construction are the keys to improving affordability.
Opposing the study, Chris Auld, an economist at the University of Victoria, argues that the researchers confuse correlation with causation. Auld asserts that rapid population growth and wealthier buyers have bid up prices despite the increased supply. The disagreement over these economic drivers remains a central issue in British Columbia's provincial and municipal elections.
