What does B.C. What does the B.C.

British Columbia’s housing market has had a strange half-decade. After almost two decades underproduction, municipal bureaucratic inaction and a failure to plan for the future, affordability issues continue worsening despite media fixation, an endless stream of government promises, plans, policies, podium pontifications, and proactive pronouncements.

The writ has yet to drop, but it’s expected British Columbians will once more take to the polls on Saturday, October 19, 2024. While housing and provincial affordability are top-of-mind issues, it’s the shift in public polling that’s particularly fascinating in the lead-up.

Two main contender parties: the far-left and the far-right

The destabilization started with B.C.’s Liberal PartyRebranding April 2023 to the ambiguously-named B.C. UnitedIt was an expression that resonated with absolutely no one. This is probably because they sound like they should be playing Manchester United instead of dealing with politics.

But the real story here is the upstart Conservative Party of B.C.The NDP (New Democratic Party), the party in power, which once had a majority advantage in the polls, is now virtually equal in support. This essentially means that, in the upcoming B.C. The two main contenders are either far-left or a far right option. It’s a showdown of the ideologies. 

What brought us here?

B.C. The progressive NDP has ruled B.C. for two terms. Former housing minister David Eby assumed the reins when then-Premier John Horgan stepped down (due to health issues).

Eby was aggressive in his approach to housing policy. Eby’s qualifications to handle the housing issues are undeniable, whether you like or dislike the NDP. In addition to his extensive ministerial and Attorney General experience, Eby spent the first years of his career with the PIVOT Legal Society. This non-profit Downtown Eastside organization provides legal advocacy for those in poverty. Civil Liberties Association.

It was a clear case of a leader coming to power who had a strong hands-on background, and the willingness to take immediate steps to curb drug problems and homelessness. What has happened in his 22 months as president is a litany if aggressive policies. Municipal housing targets are being set, as well as major rezonings, the banning of short-term rentals, and stronger tenancy rights. 

B.C.’s housing system changes’ billion-dollar consequences should create heavy burden of responsibility

If there’s a notable criticism of Premier Eby leading into the election (and it’s one that will dog him in the months to come), it’s that he has ruled with an iron fist in a velvet glove. This administration has acted repeatedly more like a nonprofit activist than an balanced government. Often over-focused on certain demographics while negatively portraying others, ignoring mayors and city councils concerned by the dictated pace of development and lack of matching infrastructure funding, protecting tenants with heavy-handed measures while ignoring the needs of the perceived privileged landlords — who are often just struggling families with a rental suite, not faceless corporations.

In short, it’s a complex housing ecosystem in B.C. It is a complex housing ecosystem that must be navigated with extreme care. Any change can lead to billion-dollar costs, and that should be a heavy burden. I don’t see enough of that burden with this government and that concerns me. 

What do we need to move forward? 

Actual collaboration

If we’re going to take all the rhetoric out of the housing crisis and get down to actually building solutions, then the issue requires the proper resources to tackle it. What ever party is in power, it must immediately establish a Permanent Housing Roundtable consisting of 12 or more carefully selected policy experts from across the housing continuum, including market, non-market, and Indigenous housing.

Let’s dwell for a minute on who is currently drafting our legislation. Currently, federally and provincially a group of policy analysts work in the respective housing ministries. These are people who were either transferred from other ministries or fresh out of post-secondary graduate programmes. These staffers, at both the provincial and federal levels, are not equipped to handle the complexity of the issues they are analyzing. The policy we see reflects that. Though the ideas are often sound, they are not always executed well.

The only way to move forward is to form a group of experts with extensive experience in housing policy from the private sector and non-profits to work with the government. This would add significant bench strength to the policy teams and would avail the opportunity to pressure-test new legislation before it’s announced for unforeseen consequences. 

Significant tax reform

Housing in B.C. There are so many taxes on housing in B.C. that we need Robin Hood’s help to get out of it. The review and repealing of some of the taxes that are burdening B.C. The cost of housing could be significantly reduced for buyers since 2016. A large portion of the cost of a home is due to taxes. Property Transfer Tax is an example. Originally, it was a wealth-tax for the top five percent of sales. Now, it applies to everyone. The lack of transparency about how taxes are spent, and the fact that most of them disappear into “general revenues”. 

Investor incentives should also be a major focus. This government doesn’t seem to distinguish between “speculative investment”, on which they cast aspersions, and other investment categories, from which our economy is heavily reliant. They need to stop using the developers as a piggybank. Developers aren’t the answer to every municipal budget shortage that occurs amid expansion of supply. 

Immigration offset by training in local trades

It is often said that a high number of immigrants is necessary to bring in the skilled workers needed to expand the housing supply throughout the province. The Feds have begun to rein in record-high immigration, as its causal effects on national housing pressures become more and more evident.

The government’s Labour Market Outlook estimates about 65,000 openings over the next 10 years in the construction sector, with 55,000 necessary just to offset retirements. B.C. can set about incentivizing the next generation of skilled trades labourers in the province — start offsetting tuition costs, offering high school feeder programs, initiating recruitment campaigns for youth, expanding facilities at the B.C. Institute of Technology 

There is real job opportunity in B.C.’s housing trade sector for years to come. Why not focus on getting more graduates into these programs, and increasing trade graduate numbers by tenfold over the next ten years? 

Exemptions for foreign buyers

The Foreign Buyer Ban is a slick federal policy that was implemented in 2023. It had very little impact on statistics. B.C. has a major negative side effect. This ban includes several ski areas that are also municipalities.

The ski hills are a vital part of B.C. Tourism sector is still struggling to recover after a long-term COVID-19 closure and a disastrous 2024 season. Now, to protect housing supply, foreign investors can’t invest in ski condominiums? The provincial government must work with the federal government in order to resolve this issue as soon as possible, before the next ski season. 

Get rid of the rescission periods

It was and still is a bad idea to allow buyers to cancel a home purchase that they have willingly entered into. We all know that buying property is a big responsibility. Back-out clauses are already in place for certain categories. 

The rescission clause was designed to coddle the buyer and treat them as ignorant, innocents on a competitive market. It fails to take into account the symbiotic nature of the relationship between buyer, and seller. Once a house is sold, the seller becomes a buyer. Allowing “I changed my mind”Back-outs without any specific justification are a disruptive and harmful tool. 

Exemptions on short-term rental

Policy that puts too much emphasis on housing at a regional level and ignores the regional economy is not a well-thought out policy. The tourism industry is still recovering from COVID-19. Our wine regions suffer. Unintentional foreign homebuyer restrictions have harmed multiple ski regions. Now short-term rental stock will be stomped on for the theoretical transformation into permanent rental stock.

The data isn’t agreeing and hotels across the province have never cost more. After the election, the government should start drafting a list of exemptions that are based on region, season, zoning, and support for critical sectors like remote medical workers, students, and people travelling to medical care. 

Looking forward

B.C. It can overcome the challenges it faces. To do so, it’s high time partisan politics were extracted from housing policy.

Let’s gather the smartest policy minds in the province. Let’s craft public-private collaboration. Let’s work together. And let’s get this done.