With the BC election campaign officially underway, the British Columbia Real Estate Association (BCREA) has launched a comprehensive five-point election platform designed to influence housing policy and raise awareness about the pressing issues affecting real estate across the province. Although BCREA is a nonpartisan association, it plays a critical role in ensuring that key housing questions are being raised during this critical election period. The campaign highlights five central issues that require attention to help alleviate BC’s housing crisis.

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1. Expansion of Provincial Trades Education, Funding, and Facilities

The Problem:
BC is facing a shortage of skilled trades workers, which is hampering efforts to meet the housing needs of a rapidly growing population. While the provincial government has committed to building between 216,000 and 293,000 new housing units over the next decade, significant barriers such as long permitting processes and a lack of skilled workers persist. The BC government estimates that nearly 55,000 construction workers will retire in the next 10 years, while BCREA projects that an additional 130,000 workers will be needed to meet housing targets by 2035.

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Key Barriers:

• An aging workforce and higher certification requirements.
• Inadequate funding for Skilled Trades BC, which hasn’t increased in over a decade.
• Insufficient trades training capacity in BC’s secondary and post-secondary institutions.

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Recommendations:

• Increase funding for Skilled Trades BC Youth Programming and expand capital grants for trades training institutions.
• Launch provincial scholarships and incentivization programs for skilled trades students.
• Introduce measures to improve awareness and support for trades from secondary school levels.

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By addressing these issues, BC could better retain and attract skilled workers necessary to meet its construction goals.

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2. Housing Tax Reform

The Problem:
BC’s housing tax regime is one of the most burdensome in the world, making it increasingly difficult for residents to afford homes. Housing-related taxes such as the Property Transfer Tax (PTT) and the Speculation and Vacancy Tax (SVT) have escalated since 2016, adding over $2 billion annually in provincial revenue. The PTT alone generates nearly $1.95 billion each year, with its rates being far higher than when the tax was first introduced.

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Impact on Affordability:

• Median PTT paid by BC households has doubled since 2010 to over $11,000 per transaction.
• 99.5% of transactions in the Lower Mainland now pay higher PTT rates, a significant increase from the original 1987 tax thresholds.

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Recommendations:

• Review the PTT to create a more equitable system, exempting homes priced below the average provincial price of $959,480 from the tax.
• Simplify and rationalize the tax rates and thresholds to reduce confusion and ease the burden on buyers.
• Repeal the Speculation and Vacancy Tax (SVT), which has shown diminishing returns and limited impact on rental prices.

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BCREA believes that by reforming housing taxation, the province could dramatically improve housing affordability for its residents.

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3. Short-Term Rentals: Impact and Proposed Changes

The Problem:
The province-wide ban on short-term rentals has led to disruptions in the tourism and business sectors, particularly in regions like the Okanagan. The crackdown on platforms like Airbnb has removed housing stock from the short-term rental market, which may help address housing supply, but it has caused significant challenges for certain groups such as medical employees, film industry workers, and tourists needing short-term accommodation.

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Impacts on Specific Sectors:

• Tourism: The Okanagan has seen a decline in tourism revenue during peak seasons due to the reduced availability of short-term rentals.
• Film and Medical Sectors: Short-term housing availability for temporary workers has been reduced, negatively impacting industries like film production and healthcare.

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Recommendations:

• Exempt high-tourism areas, medical staff, and individuals in need of short-term accommodations from the current restrictions to ensure that business and essential services are not hindered.

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BCREA advocates for a balanced approach that preserves housing stock for long-term rentals while allowing some flexibility for short-term accommodation in high-need sectors.

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4. Establishing a Permanent Provincial Housing Roundtable

The Problem:
BC’s government has introduced a number of new housing policies in recent years, but the process has often lacked detailed consultation with housing experts. This has resulted in policies that may not fully address the complex dynamics of the housing market and can lead to unintended consequences.

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Recommendations:

• Create a permanent housing roundtable consisting of 10-12 policy experts from across the housing sector, including representatives from market, non-market, Indigenous, and other relevant sectors.
• The roundtable would work closely with the provincial government to review proposed housing legislation, ensuring that policies are holistic, practical, and effective.

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By involving industry experts early in the policy-making process, BC could avoid many of the pitfalls that have slowed housing development and exacerbated affordability issues.

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5. Remaining Problems with New Notice to End Tenancy Rules

The Problem:
In 2024, BC introduced new rules requiring landlords to provide tenants with four months' notice before evicting them for the landlord's or buyer's use of the property. While these rules were revised to a three-month notice period following feedback from BCREA, other issues remain unresolved.

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Remaining Concerns:

• Financial strain on high-ratio insured buyers (including first-time homebuyers), who may struggle with delays in taking possession.
• Privacy concerns for landlords who must provide a copy of the Contract of Purchase and Sale to tenants as part of the eviction process.

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Recommendations:

• Allow high-ratio insured buyers to continue providing only two months' notice to tenants due to the financial burden of longer delays.
• Eliminate the requirement for landlords to share Contract of Purchase and Sale information with tenants, instead allowing documentation through more secure channels like the Residential Tenancy Branch.

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These adjustments would streamline the process and protect both landlords and tenants during real estate transactions.

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BCREA’s Campaign Moving Forward

BCREA is working to bring these critical housing issues into the public sphere leading up to the election. Through opinion articles, media releases, and targeted advertising campaigns, BCREA aims to raise awareness about the importance of reforming housing policies, taxation, and construction practices to address the province's housing crisis.

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With ads running on Global Television, CKNW Radio, and various digital platforms, BCREA hopes to engage both the public and policymakers in a conversation about the future of housing in British Columbia. By focusing on these five key issues, BCREA seeks to ensure that housing remains a priority in the upcoming provincial election.

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Conclusion

BCREA's pre-election campaign seeks to highlight the pressing issues impacting BC’s housing market, from expanding trades education and reforming housing taxes to addressing the challenges posed by short-term rentals and improving the province’s tenancy rules. These five critical areas are key to tackling BC's housing crisis, ensuring that policies not only promote housing affordability but also streamline construction and foster long-term sustainable growth.

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In the coming days, we will explore each of these five issues in greater detail, with a series of articles dedicated to providing in-depth insights into each of BCREA's five election platform points. Stay tuned for a comprehensive breakdown of these topics and their potential solutions, helping to inform the public and stakeholders about the path forward for BC’s housing market.