VANCOUVER (NEWS 1130) – A local economist believes eliminating bridge tolls is unlikely to have a significant impact on house prices south of the Fraser.
The NDP government is getting rid of tolls on the Port Mann or Golden Ears bridges in September. Tom Davidoff with UBC’s Sauder School of Business doesn’t think the move will make a difference to home prices, because both the New Democrats and the Liberals promised to either eliminate or cut tolls when they were campaigning.
“Already by election time, everybody knew tolls were coming down, so prices should bake in all available information.”
“And so the fact the NDP is doing something they said they would should not affect prices ni the short-run. They should have already been affected by this announcement.”
Davidoff also explains that housing prices have been rising so fast anyway, and the effect of tolls would have been buried or lost.
“The toll change won’t be permanent so if anything we might see something in rents in the short run, but I don’t think it’ll be significant.”
Davidoff says rentals could be affected, but doesn’t think it’ll last forever.