Navigating the Housing Crisis in British Columbia: Urgent Actions Needed
British Columbia (BC) finds itself at a pivotal juncture in its housing crisis. Despite the provincial government’s commendable efforts, including a series of robust policy measures aimed at alleviating the crisis, the overall action still falls short of the urgent needs of the moment. The gap between legislative initiatives and the scale of the housing crisis remains stark and pronounced.
A Snapshot of Government Actions
In the past year, BC’s government has introduced several measures, including:
- BC Builds Program: Aimed at accelerating the construction of non-market rental housing.
- Rental Protection Fund: Designed to safeguard tenants from evictions and ensure housing stability.
- Regulation of Short-term Rentals: Restrictions on platforms like Airbnb to keep rental units in the long-term market.
- Flipping Tax: To discourage speculative real estate practices.
- Standardized Designs for Multiplexes: Streamlining the design process to expedite housing creation.
- Reforming Development Charges: Making it cheaper and easier for developers to build.
- Encouraging Proactive Planning in Municipalities: Urging local governments to adjust zoning laws to facilitate housing development.
Nonetheless, despite these aggressive initiatives, BC is still not meeting the extensive demand for housing. The Canada Mortgage and Housing Corporation estimates that BC needs to build approximately 610,000 new homes by 2030 to address the shortage and meet evolving demands, with 25,000 of those being non-market homes needed annually.
Confronting the Core Issues
To navigate this crisis effectively, BC must ramp up the creation of public and non-profit housing. This can be achieved through three strategic actions:
- Removing Restrictive Zoning Bottlenecks
- Increasing Capital Grants and Loans
- Proactively Developing Public Sector Housing Projects
Removing Restrictive Zoning Bottlenecks
One of the most pressing barriers to non-market housing development is the restrictive zoning in most municipalities. The government should legislate to allow non-market housing to be built “by right” — meaning that it doesn’t need a discretionary rezoning on a case-by-case basis. This would significantly reduce the costs, risks, and delays associated with the current zoning processes.
Currently, most residential land is exclusivity designated for low-density housing. This limits the land available for multi-family developments, driving up land prices and making it exceedingly difficult for affordable housing proposals to materialize. The costs incurred in navigating the rezoning process can range from $500,000 to $1 million, a burden that non-profit developers often struggle to bear. This cost is often passed on to residents in the form of higher rents, exacerbating the affordability crisis.
Upzoning for Non-Market Housing: Doubling Density
By enabling developers to build multi-family housing at higher densities across BC, the government can enhance the availability of affordable housing. For instance, allowing a six-story development or doubling existing density regulations can empower developers to initiate more projects that cater to lower-income residents.
The intention behind the BC Builds program is commendable, but its anticipated creation of 8,000 to 10,000 homes over five years falls significantly short of addressing the backlog. Policymakers need to move more boldly and efficiently to clear hurdles to non-market housing development.
Increasing Public Financing and Capital Grants
The current housing crisis necessitates that both federal and provincial governments secure accessible, low-interest loans for non-market housing development. Major initiatives such as the Apartment Construction Loan Program and BC’s HousingHub program are steps in the right direction.
However, increased capital grants, funded through targeted tax reforms such as higher taxes on wealthy landowners, are crucial for creating deeply affordable housing options. The substantial rise in residential property values in BC presents an opportunity to redistribute some of that wealth into public housing initiatives.
Taking Initiative in Public Sector Housing
Governments must become more proactive in developing their housing projects. While partnerships with non-profit developers are essential, public agencies like BC Housing should scale up their internal capabilities to initiate and finance their housing projects. Adopting self-supported debt models for financing could also alleviate fiscal pressure while expanding the inventory of public housing.
The Call for Comprehensive Housing Solutions
Ultimately, confronting BC’s housing crisis necessitates a multi-dimensional strategy. Simply focusing on non-market housing will not suffice; a larger strategy must include ending exclusionary zoning, providing renters with robust protections, and addressing the broader housing supply deficit.
Recent provincial zoning reforms are a start, but they must extend far beyond current proposals. Enabling more multi-family housing across the spectrum will contribute to meeting the pressing needs of all BC residents.
The stakes are high: with waitlists for social housing soaring and the risk of increased homelessness looming, it’s imperative that BC government speed up efforts to create a wide array of non-market and affordable housing options. The time for bold, decisive action is now — the communities of BC are counting on it for years to come.
