Vancouver City Strike Costing Developers 30,000 Dollars a Day
Few industries are as beholden to government workers as development and construction. There are many layers of bureaucracy that they have to wade through for every project. In the best of times this adds a cost due to inattention and malaise. However, add a strike as Vancouver is experiencing by city workers and it will grind construction to a halt.
The inability to get projects permitted and inspected makes the developers have to slow down and stop construction. And Vancouver is booming right now, so there is not even the chance for a developer to lay the crew off for a week to save some money. They will be working for his competitor the next day as labor shortages make getting skilled workers invaluable. So the developer is having to keep these guys on the payroll without any work getting done.
In a slow economy, developers could afford to lay off contractors while they waited for a resolution, Enser said. But, in B.C.’s hot economy, developers must continue to pay their contractors during a strike.
“If the strike goes more than a week, it’s going to have a really serious impact,” Enser said. “Developers can’t let their teams go — they will have to hold them.”
Those holding costs will ultimately be passed on to homebuyers, she said.
Enser said the city’s planners and building inspectors were already working flat out dealing with projects related to the 2010 Olympics and Canada Line. via the National Post.
Very funny comparison. However you don't need to pay property tax on Barbies 3 Story Dream House. With the unemployment ...
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
Comment by Danny on 24 July 2007:
Canada is about one year behind the US. Expect these builders to start taking loses shortly, within a year.
My site:
http://housingtsunami.com/blog