Tear down and build larger vs rehab and sell?

[Lorin K.]

Seems this is the trend in more expensive cities like Seattle and in Vancouver. Doesnt this go against the grain of investing in income properties? What happens when the economy turns sour and the vacancy rates drops and total stock for homes for sale in a town increases? Also, what is the reason why these houses look like a box instead of traditional slopped roof style?

http://www.seattletimes.com/seattle-news/data/teardown-town-1500-small-houses-replaced-by-giants-since-2012/