Quote from the article:
The reality is, nothing’s changed. Contrary to the cozy little myths about inflated land values and foreign ownership started in the 80s by mainland China, the factors that fuel the city’s vibrant real estate market are actually little different than they were 100 years ago. - See more at: http://thedependent.ca/featured/land-de ... ztNvE.dpuf
The author shows a total lack of understanding here.
Yes, the market can collapse....any time.
But I can think of five things that are
different right off the bat.
1) Back in them old days the Federal Gov't just wanted labour to build the railway. There were no "financial" qualifications required on the part of the immigrant. Anybody would do. All they had to do was show up for work without
their wives and family. Hence the immigrant did not need to own a house. Instead he was warehoused in downtown SRO's.
Today some immigrants are allowed in because buying a house is classified as a "business enterprise", and thus will help qualify the immigrant for citizenship.
2) Chinese and First Nation people weren't
allowed to own land back then.
3) Money was backed by gold back then. There was no need to have a "store of wealth" and hence no upward pressure caused by degredation of the currency. And money was not printed like it is going out of style. There was no CMHC either.
4) There was no middle class demand for real estate back then.
5) Populations were sparse. Today in some areas it's totally congested as there is a desire to live in, or close to urban centers.
Sorry author, you have no fawking clue.
Yes the market can collapse anytime. But the reason for the boom and the reason for the bust will be beyond your level of understanding.