Patrick Sisson at Curbed.com reports on the ground breaking (no pun intended) work of two Vancouver locals~Joseph Dahmen, a professor of architecture at the University of British Columbia, and mathematician Jens von Bergmann of MountainMath Software. They’ve developed the “teardown index” by determining the ratio of land to home value. Relative Building Value, or RBV needs to be 60 to 70% for a new residence “but when the RBV drops below 10 percent, the chances for a teardown increase dramatically.”.
How dramatically? Based upon their formula, the researches estimate that 25% of the current single residential houses in the city could be gone in the next twelve years.Read more »