Mortgage Broker

CMB MAGAZINE cmba-achc.ca fall 2018 | 9 editorialsummary and development charges add more than $640,000 to the cost of building an average new home. Elimination of these regulations would clearly result in more market housing, which the authors believe would meet market demand. A second recent report authored by James Tansey from the University of British Columbia's Sauder School of Business came to similar conclusions. Tansey maintains that the province of B.C. has not implemented sufficient measures to ensure the increase of the housing supply. He suggests that the province needs to undertake a key role in ensuring that municipalities create supply. Decision-making across individual municipalities is fragmented and the provincial government needs to step in to develop a coherent strategy to encourage the development of affordable housing across the province and in each municipality. Each year, Metro Vancouver receives approximately 35,000 new residents and 140,000 foreign students and temporary workers. However, the province does not have a cogent plan to accommodate this influx. Tansey concludes that "In addition to a stronger plan for the region, the province could establish performance standards and maximum wait times for permitting, formalize Community Amenity Contributions and transfer revenues from housing-related taxes to municipalities to build capacity." Tax and appraisal expert Paul Sullivan confirmed Vancouver's addiction to real estate fees and taxes while speaking at a recent Vancouver Housing Forum. In his tally, 26 per cent of the purchase price of a new apartment costing $840,000 is due to government taxes and fees, which in dollar amounts is a jaw-dropping $220,256. e solution to housing affordability seems simple: we need to build more housing and in particular more market housing. Of course the execution of this strategy is much more complex, particularly given the tax- and regulation-heavy environment which the housing industry and homeowners need to manoeuvre around. However, if we step back from the endless debates about taxing foreigners and speculators, capping rent increases and pumping tax dollars into social housing, there are, as laid out in these three reports, clear solutions. Just take a look at the city of Tokyo. ree decades ago, it was in the midst of a housing crises just like the one we are experiencing now in our Canadian urban centres. Yet Tokyo currently has a staggering population of over 39 million residents – 50% more people than any other city, worldwide. However, rental rates have been steady over the last 20 years, with the average rent being about US$2.50 a square foot. Despite a recent surge in housing demand, as of last January, the average price of a newly constructed single-family house within Tokyo was the equivalent of $780,000 (Canadian) and only $510,000 (Canadian) in its western suburbs. Tokyo has avoided urban sprawl, and instead of housing people in ever diminishing square footage, it has increased people's living space by approximately 28 per cent. If Tokyo can figure this out, then perhaps we should take note of how the city achieved this success. e answer is simple. Tokyo built a record amount of market housing, complimented by smart and efficient transit systems. e national government made a bold move over 30 years ago by enacting legislation to force local governments to radically simplify zoning rules and eliminate permit approval wait times. is allows all Japanese cities to supply enough housing to keep up with demand. ere is nothing to stop our provincial governments from following Japan's lead. We know that cities must grow and adapt over time. e discussion on how to shape that growth surely must come from a higher level so we can move away from partisan community politics and old fashioned NIMBYism (from Not In My Backyard), which generally opposes any neighbourhood change. It is time for all levels of government to step up and listen to the experts to find real, tangible solutions to our housing affordability problems.

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