The term "affordable housing crisis" has become ubiquitous, often overshadowing the significant opportunities that lie within this challenge. At Coldwell Banker Horizon Realty, we believe that British Columbia is poised for remarkable growth, and a proactive, forward-thinking approach to housing is key to realizing that potential. We're not just selling homes, we're invested in building thriving communities.

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Acknowledging Past Missteps

It's important to acknowledge that past policies haven't always been effective. Restricting foreign investment, while intended to curb rising prices, ultimately exacerbated the affordability issue. The benchmark price of a detached home in Greater Vancouver exceeding $2 million in early 2022 is a stark illustration of this. We must learn from these experiences and embrace a more nuanced approach.

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A Global Opportunity

Canada, and British Columbia in particular, is increasingly attractive on the global stage. Shifting political landscapes and Canada's ambitious immigration targets (485,000 new permanent residents in 2024 and 500,000 in 2025) present a unique opportunity to attract highly skilled workers and professionals. This influx of talent represents a significant economic advantage, but it also necessitates a substantial increase in housing supply.

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Strategic Policy Shifts

To capitalize on this opportunity, we need to move beyond restrictive policies and embrace a more dynamic and responsive approach to housing. This requires:

• Modernizing Zoning Regulations: Outdated zoning regulations in many BC municipalities significantly limit housing density and contribute to higher prices. The C.D. Howe Institute's finding that Vancouver's zoning restrictions could have reduced potential housing supply by as much as 50% highlights the urgency of this issue. We need to encourage a greater diversity of housing types, including townhouses, multi-family dwellings, and "missing middle" options.
• Refining Foreign Investment Policies: While concerns about foreign investment's impact on prices are valid, a blanket ban is counterproductive. A more strategic approach, such as exempting new developments from foreign buyer taxes, would channel investment into creating much-needed housing supply. The fact that foreign buyers represented approximately 1% of BC transactions before the full ban implementation suggests that targeted policies can leverage foreign capital without unduly impacting the existing market.
• Streamlining the Development Process: The lengthy and complex development approval process in many BC municipalities adds significant costs and delays to new housing projects. The Greater Vancouver Board of Trade's 2021 finding that the average approval time for a multi-family project in Vancouver exceeded two years underscores the need for significant reform.
• Re-evaluating Development Charges: While infrastructure funding is essential, the current reliance on high development charges, which can exceed $100,000 per unit for some new Vancouver housing, places an undue burden on new homebuyers and further exacerbates affordability challenges. Exploring alternative funding models, potentially with increased contributions from higher levels of government in cities committed to growth, is crucial.

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Short-Term Rentals

The impact of short-term rentals on long-term housing availability is a legitimate concern. However, it's also important to recognize the role that short-term rentals, which numbered around 33,000 active listings in BC before the new regulations, play in the tourism sector and the broader economy. A balanced approach that addresses both housing needs and the economic contributions of small business owners is essential.

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Addressing the Skilled Labour Shortage

Meeting the projected demand for 5.8 million new homes by 2030, as estimated by the Canadian Home Builders' Association, will require a significant increase in the construction workforce. Streamlining immigration processes for qualified construction workers is a vital component of addressing this challenge.

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Global Potential

Vancouver has the potential to become a truly world-class city, a hub for innovation and opportunity. However, realizing this vision requires addressing the housing affordability crisis and creating a welcoming environment for talent and investment. With Metro Vancouver's population projected to grow by over one million people by 2050, proactive and strategic housing policies are paramount. It's crucial to recognize that housing policy is inextricably linked to economic policy. The real estate sector, contributing over 13% of Canada's GDP in 2023, is a major economic driver. A healthy and accessible housing market is fundamental to overall prosperity.

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A Call to Action

Coldwell Banker Horizon Realty is committed to being part of the solution. We believe in British Columbia's immense potential and are dedicated to advocating for policies that foster sustainable growth and ensure access to housing for all. It's time to move beyond outdated approaches and embrace a bold vision for the future of housing in BC.