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BC Real Estate Association: B.C. municipalities require collaboration to meet housing needs

BCREA shares its insights on issues surrounding the province’s housing market

Everyone needs a place to call home. Yet, in B.C., homeownership rates are declining, rental rates are increasing (in defiance of rental rate caps), and homelessness is increasing.

This problem is witnessed first-hand by the real estate sector. 

“Having adequate, affordable housing options is a fundamental human need,” says Real Estate Board of Greater Vancouver CEO Jeff King. “For too long, our region has struggled to ensure availability of the volume and variety of housing to meet this need.” 

The Right to Housing was established in the 2019 National Housing Strategy Act, and yet some local governments continue to be barriers in allowing families to realize that right. The challenges are many, but the best path forward is clear.

Challenges within cities

A significant challenge within some city councils and among some neighbourhood associations is a denial of a housing problem. Some elected officials have claimed that B.C. is building enough housing. Even worse, some have claimed that building more housing will actually worsen the affordability problem. 

The truth is that more housing stock is needed because average household sizes are declining, and more people are coming to B.C. than are leaving. Despite this need, B.C. has seen below-average housing completions for the past two decades. To address this long-term shortfall, housing needs to be built at a rate that exceeds population growth.

In most cities, the majority of residentially zoned land only allows single detached homes, which are the most expensive form of housing. Ground-oriented, family-friendly houses, such as duplexes, triplexes, and laneway homes, should be allowed to replace many single detached-zoned lots. 

B.C. NDP leadership candidate David Eby recently issued an aggressive housing platform of campaign promises. His plan could achieve positive gains in closing the gap in housing needs by legalizing secondary suites everywhere across the province and allowing homebuilders in major urban centers to replace a single-family home with up to three units. Still, the question remains as to whether these measures would be enough.

Challenges between cities

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Municipalities can help address the housing affordability issue by incentivizing Missing Middle housing to allow for gentle densification, says BCREA. Photo via: iStock.

Another challenge facing municipalities is the need for a coordinated, collaborative approach. If some cities are unwilling to prioritize housing needs, this exacerbates housing issues in neighbouring cities and communities.

A good indicator of who’s pulling their weight is comparing city population growth to the Canadian average. Canada-wide population growth was 5.2% between 2016 and 2021, and yet many municipalities grew by less than that amount during the same period. This figure indicates they’re effectively shrinking relative to nationwide demand. 

In seeking solutions to housing affordability issues, Vancouver Island communities need to recognize the importance of collaboration among real estate providers, community stakeholders, and all levels of government.

Solutions

The provincial government can empower local governments interested in creating more housing. They can allow municipalities to conduct rezoning with fewer barriers, focusing on community-wide, long-term benefits instead of giving a megaphone to short-term, self-interested perspectives. 

This can be accomplished by strengthening cities’ Official Community Plans by giving them zoning powers. New proposals for development that are compliant with Official Community Plans should be able to go directly to the development permitting stage.

For municipalities that refuse to face the reality that there is high demand for housing supply in their jurisdiction, the province can use its purse strings to pressure them to do their part. For example, transportation funding can be used to leverage gentle densification. Do you want funding for a rapid bus route? First, you need to meet your Housing Needs Report!

Cities can do their part by incentivizing (or in some cases, allowing) Missing Middle housing to allow for gentle densification. For example, Coquitlam Mayor Richard Stewart says that “more Missing Middle housing supply is needed to address the housing affordability problem.” 

Many cities are beginning to recognize the need for more Missing Middle housing in their Housing Needs Reports.

You can do your part by learning about how your local politicians stand on housing issues. We all play a role, and no one group can tackle B.C.‘s housing challenges alone.

Authorized by the British Columbia Real Estate Association, registered sponsor under LECFA (Local Elections Campaign Financing Act), 604-683-7702.