VANCOUVER – Scarce and expensive housing is eroding the province’s liveability and economy and the skyrocketing price of homes has become a source of enormous wealth inequality, says a new report that analyzes policy changes introduced by the BC and federal governments in recent years and finds more action is needed.
Policy changes examined in Building Equity: Lessons for Affordable Housing in BC include new public investments in affordable housing, changes to exclusionary municipal zoning and restricting more-speculative forms of investment. The report is written by CCPA-BC senior economists Marc Lee and Alex Hemingway.
“Expensive housing is eroding the core of BC’s economy,” Lee says.
“In recent years, speculative behaviour from real estate investors has been top of mind as home prices rise beyond the reach of many households,” he adds.
The report addresses both the demand- and supply-side factors behind the housing crisis, in particular the surging cost of rental housing and limited new rental housing development. While focused on Metro Vancouver, similar issues are found in more-populated places in BC and the report’s lessons can be applied and adapted equally for specific communities around the province, the authors say.
Public and non-profit housing are needed to deliver genuine affordability in the short run and maintain affordability over time, Lee and Hemingway say.
The federal National Housing Strategy and the provincial Building BC program have been slow to deliver the type of community or social housing that was built from the 1960s to 1990s and that remains a cornerstone of housing affordability several decades later, they explain.
“In the context of a housing shortage, allowing new non-market and market rental apartments is crucial, particularly in the large areas of cities currently reserved exclusively for low-density housing. Where possible, land value increases from upzoning should be used to meet affordable housing objectives, while ensuring projects remain economically viable so they actually get built,” says Hemingway.
The report provides direction to all levels of government—local, provincial and federal—to increase affordable housing for both renters and owners.
Directions for local governments
The BC government has implemented housing supply targets for local governments, while establishing minimum densities across the province. Recommendations include:
- Legalize multiplexes and small apartment buildings in detached-housing neighbourhoods.
- Reform public hearings.
- Implement renter protections.
- Support public and non-profit housing developments.
Directions for the BC government
The BC government has introduced a number of measures to boost private market supply and supports for rental housing including restrictions on short-term rentals and a new Renter’s Tax Credit. Recommendations include:
- Increase housing supply targets and expand zoning reforms.
- Commit to 250,000 non-market rental units.
- Create a new housing benefit.
- Reform property taxation.
- Update rent controls.
Directions for the federal government
The federal government’s 2017 National Housing Strategy has to date delivered relatively little of what Canadians might consider to be affordable or social housing. With access to nationwide taxation powers and borrowing capacity, the federal government needs to be a key player in building affordable housing and eliminating homelessness, Lee and Hemingway say. Their recommendations include:
- Recommit the National Housing Strategy to build non-market housing and end homelessness.
- Scale up the non-profit housing sector.
- Reform taxation of capital gains from housing.
Lee and Hemingway say tackling the housing crisis requires an all-of-the-above approach, including a large investment in non-market housing, accelerating zoning reform and increasing the supply of homes overall, taxing ballooning land wealth and strengthening tenants’ rights through stronger legal and regulatory protections.
For more information and to arrange interviews please contact Jean Kavanagh at 604-802-5729, [email protected]
