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Housing prices, government policy, and urban decay: a tentative hypothesis, a possible connection, and a policy suggestion Cox, James Clayton


The development of significantly different housing prices in Canada and the United States was an issue of popular concern in recent years when Canadian housing prices were undergoing almost unprecedented price increases. The purpose of this paper was to determine the underlying causes of the differential in housing prices in Canada and the United States. The research methodology followed in the preparation of this paper involved the analysis of the housing markets of Seattle and Vancouver to determine what factors might have influenced prices in these two cities. The factors considered include housing stocks and starts, population, income, credit conditions, and the impact of the state. In general the findings suggest that the price differential has evolved because of a comparatively higher level of housing demand in the Vancouver housing market.

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