A City Divided by Political Philosophies: Residential Development in a Bi‐Provincial City in Canada

Gura Bhargava

American Journal of Economics and Sociology, 2001, vol. 60, issue 1, 317-373

Abstract: This paper examines the impact of two distinct political ideologies on the development of residential dwellings, particularly single‐family residences, in Lloydminster, a bi‐provincial city in Canada. Lloydminster is a city of about 22,000 which straddles the provinces of Alberta and Saskatchewan. The two provinces are recognized for the dissimilarities in their political orientations. These dissimilarities are reflected in different taxation policies, different Medicare and health insurance policies and different auto insurance policies, which have given rise to a quantitative and qualitative split in the market for single‐family residences in Lloydminster. This duality of the housing market is manifested in Saskatchewan's “affordability” and Alberta's “desirability.” Alberta's tax policies have attracted “place entrepreneurs” to build upscale residences on its side for homeowners in high income brackets, who benefit from its tax policies. Saskatchewan's health care and auto insurance advantages have attracted those with such priorities and with moderate incomes. It is contended here that while distinct policies may have contributed to an uneven bi‐provincial housing market, the disparity between the markets has been sustained and reinforced by all players who construct the housing reality through myths and perceptions as well as interpretations of policies and their underlying ideologies.

Date: 2001
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