November 6, 2013

How expensive is housing in London?

So expensive that …

Sam Cookney, a blogger based in London, theorized on Twitter that it’d be cheaper for him to rent a two-bedroom in Barcelona, Spain, and commute to work four days a week than live in a one-bedroom in the U.K. capital.

Details here.


UPDATE: A couple of items in The Sun for more perspective on our situation:

Single-family homes are a dying breed

Single family housing accounts for just 15 per cent of new housing construction  in the Lower Mainland and families that want an affordable traditional home with  a fence around it will likely find themselves living as far east as Mission.


Housing affordability not as cut-and-dried as it seems

Don Cayo: It costs just over 8½ times the median after-tax household income of  $61,975 to buy a home for the median price of $517,677.34 …

Today’s ratio (of 8.5) is at least lower than the 9.4 to one in 2010, the peak of 9.5 to  one in 2011, or the 8.7 to one in 2011. The ratios are still headed in a  slightly more affordable direction. …

Robert Helsley, dean of the Sauder School of Business … suggested Vancouver’s high home prices are “the price of  admission” to this amenity-rich little corner of the world. …

Michael Goldberg, a UBC professor emeritus who used to hold Helsley’s job,  said when people are trying to calculate affordability, they often fail to look  at all costs. …

When homes are well located to minimize transportation costs – as they are in many expensive parts of Vancouver – “We capitalize transportation savings into home prices.”

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  1. Yup…housing prices can basically be explained by two factors: high demand (desirability of the city, a growing population) and low supply (zoning regulations, topographical and policy restrictions).

    People who attempt to explain high housing prices in any way other than that are twisting the facts to fit their worldview. Blame the immigrants, the rich, or the spectre of “foreign money”. Any explanation that doesn’t include supply and demand goes against the fundamentals of economics.