The Housing Shortage

[-dlc-]

It's no secret that many young people and families in BC and across Canada are struggling to make ends meet. With interest rates and the cost of living skyrocketing, many face uncertain futures. Having a home is all but a dream for many.

 

I, for one, don't believe Air BnB when they claim that short term rentals aren't a problem or contributing to housing shortages. It's their bread and butter so of course they're not in favour of anything that interferes with that.

 

I know people tracking this in Richmond and some offshore investors have multiple listings in the double digits. I'm talking over 50 properties each. We need more housing, sure. But to build condos that are gobbled up in pre-sales by foreign investors making big bucks is not really getting us any further ahead. Some of the mega mansions built on farmland here are now being advertised by the room/night for a small fortune. Many in strata units simply tell their clients to say they're family to skirt around bylaws. "Don't talk to anyone". It's so shady.

 

I'm glad to hear the province is going to further delve into this:

 

https://bc.ctvnews.ca/b-c-is-bringing-in-new-rules-for-short-term-rentals-here-s-what-s-changing-1.6603052

 

Quote

B.C. has put in place new legislation to help municipalities regulate short-term rentals on sites like Airbnb, which provincial and municipal leaders say is affecting the availability and price of long-term housing.

The new rules passed first reading in the B.C. Legislature Monday and include increasing fines for hosts breaking local municipal bylaw rules to $3,000 per infraction, per day, from $1,000.

All short-term rental platforms will also be required to share data with municipalities to improve local enforcement, although no private information about hosts will be released publicly.

In addition, all short-term rental platforms will have to include the business licences and registration numbers of listings where they are required by a local government, and must remove listings without those requirements quickly.

The province says the new rules, which will come into effect in stages from now through late 2024, are meant to create a minimum regulatory standard for housing available for rent for fewer than 90 days.

uration0:43

Housing Minister Ravi Kahlon says news rules to regulate short-term rentals in B.C. are meant to target short-term rental hosts with multiple listings, often for homes where they don't live.

B.C. Housing Minister Ravi Kahlon said the rules are meant to target operators who rent out multiple units over the short-term in residences where they do not live themselves.

"Operators with multiple listings are taking homes off the long-term market to make big profits while people pay the price — it can't go on like this," he said.

Short-term rental listings on online platforms such as Airbnb, VRBO, Expedia and FlipKey have expanded rapidly since the COVID-19 pandemic and are now at an all-time high, according to the province.

The province said there are around 28,000 daily active short-term rental listings in B.C., which is an increase of 20 per cent from a year ago. Data indicates that more than 16,000 entire homes are being listed as short-term rentals for the majority of a calendar year, according to provincial officials.

The legislation limits short-term rentals to within a host's home, or a basement suite or laneway home on the property where they reside. 

 

More than a dozen resort municipalities, mountain resort areas, electoral areas including the Gulf Islands, and most municipalities with a population under 10,000 people will initially be exempt from a principal residence requirement but can opt in if the local government decides to.

Some municipalities such as Vancouver already have more stringent rules but struggle to enforce them. The city defines short-term rentals as those that are shorter than 30 days.

"We have said we need more support when it comes to enforcement and we are pleased to see the province introduce these changes, with more significant consequences for those who seek to abuse the system," said Vancouver Mayor Ken Sim as part of a provincial release.

The new changes also include a new provincial short-term rental compliance and enforcement unit, but the province did not provide a timeline or budget for that. It said it would be modelled after the Residential Tenancy Branch's unit, which has 10 members.

 

The province said the increased fines for municipal bylaw infractions went into effect on Monday after immediately achieving royal assent. The legislation also now allows regional districts to require business licences from hosts in communities where there was no mechanism for it before.

On May 1, 2024, the principal resident requirement will come into force along with the requirement for business licences to be displayed on platforms. Also in effect on May 1, 2024 are changes that close loopholes that allowed short-term rental hosts to operate under pre-existing municipal rules.

Next summer, short-term rental platforms will have to share data with the province and a provincial registry for platforms will be mandatory by late 2024.

David Wachsmuth, the Canada research chair in urban governance at McGill University, said in a statement that the new policy will set a new Canadian standard.

"These are sensible, evidence-based rules that are going to prioritize the needs of B.C. residents and get available rental housing back on the long-term market where it belongs.''

Not the solution, says Airbnb

Helping municipalities better regulate short-term rentals was part of Kahlon's mandate letter from December 2022.

Short-term rentals in cities like Vancouver, Victoria and Kelowna have come under scrutiny for several reasons including the argument that they siphon housing from municipalities already struggling to provide long-term, stable rentals to residents.

• According to a new report, you're likely paying more in rent due to the increase in short-term rentals

• Vancouver to raise short-term rental licence fee almost tenfold to $1,000

Airbnb says its platform allows residents in cities with expensive real estate to help pay their mortgages. It does not agree with studies that show short-term rentals contribute to overall rent increases.

Alex Howell, a policy manager with Airbnb in Canada, said the new rules will harm property owners trying to afford life in the province and communities that rely on revenue from tourism.

"The B.C. government's proposed legislation won't alleviate the province's housing concerns, instead it will take money out of the pockets of British Columbians, make travel more unaffordable for millions of residents who travel within B.C., and reduce tourism spending in communities where hosts are often the only providers of local accommodations."

Airbnb says it, and other short-term rental platforms, are being unfairly targeted as contributors to B.C.'s housing crisis. (Kate Porter/CBC)

Airbnb doesn't agree with the province that the top 10 per cent of hosts in B.C. earn nearly 50 per cent of short-term rental revenue.

The company said on Monday that the majority of hosts in B.C., approximately 83 per cent, share just one home. It also referenced a Conference Board of Canada report from last week that Airbnb activity at the current levels has not generated an economically meaningful increase in rents across Canada's major cities.

"The reality is, Airbnb listings in B.C. represent less than one per cent of the overall number of dwellings, and if every short-term rental was put back on the market, it wouldn't scratch the surface of the number of houses needed," a company statement said.

'Give me a break'

Speaking on Monday morning, Eby told CBC News short-term rentals are contributing to the province's housing crisis.

"I mean, give me a break," he said. "Not a single person finds it credible in British Columbia in any way that short-term rentals haven't eroded long-term rentals in this province.

"Bottom line is when people own multiple condos and are renting them out as private hotels in our province when we are desperate for long-term housing for people, it's just not acceptable. So we're going to deal with it."

 

 

[Warhippy]

30 minutes ago, -dlc- said:

It's no secret that many young people and families in BC and across Canada are struggling to make ends meet. With interest rates and the cost of living skyrocketing, many face uncertain futures. Having a home is all but a dream for many.

 

I, for one, don't believe Air BnB when they claim that short term rentals aren't a problem or contributing to housing shortages. It's their bread and butter so of course they're not in favour of anything that interferes with that.

 

I know people tracking this in Richmond and some offshore investors have multiple listings in the double digits. I'm talking over 50 properties each. We need more housing, sure. But to build condos that are gobbled up in pre-sales by foreign investors making big bucks is not really getting us any further ahead. Some of the mega mansions built on farmland here are now being advertised by the room/night for a small fortune. Many in strata units simply tell their clients to say they're family to skirt around bylaws. "Don't talk to anyone". It's so shady.

 

I'm glad to hear the province is going to further delve into this:

 

https://bc.ctvnews.ca/b-c-is-bringing-in-new-rules-for-short-term-rentals-here-s-what-s-changing-1.6603052

 

 

Full disclosure on this.

 

Property management companies and investment fund arms of REIT stocks are apparently to be immune from this.  meaning companies or corporations holding numerous properties will not be having to be at risk of this.  But the flip side is that for the first time these companies will be tracked and tagged with the first real time data regarding the financialization of our housing sector

[Coconuts]

I mean, it's something. The following isn't encouraging though, if folks are scrambling to eat up existing housing for profit that doesn't bode well for those looking to buy a home to actually live in. 

 

Short-term rental listings on online platforms such as Airbnb, VRBO, Expedia and FlipKey have expanded rapidly since the COVID-19 pandemic and are now at an all-time high, according to the province.

The province said there are around 28,000 daily active short-term rental listings in B.C., which is an increase of 20 per cent from a year ago. Data indicates that more than 16,000 entire homes are being listed as short-term rentals for the majority of a calendar year, according to provincial officials.

 

When I read stuff like this it just contributes to the idea of someday being able to buy a home feeling more and more like a pipe dream. 

[-dlc-]

It's a start, it's something. 

 

It makes sure people are licenced, regulated and registered. Many of these property owners don't like these ideas.

 

I mean, do they even declare any of this income they're currently raking in? Doubtful. 

 

 

[-dlc-]

This Bill does the following:

• requires the registration of online short-term rental platform service providers and of offers for short-term rental accommodation services;
• requires that, subject to any applicable exceptions or exemptions, short-term rental accommodation services may only be provided in a host's principal residence or, in some circumstances, one secondary suite or other accessory dwelling unit;
• provides for how certain local governments, persons or entities may request changes to the exempt land where the principal residence requirement does not apply;
• provides for the appointment, powers and duties of a registrar;
• provides for the appointment, powers and duties of a director, including the authority to undertake investigations, make compliance orders and impose administrative penalties;
• provides for injunctions that may be granted by the Supreme Court to prevent contraventions;
• provides for the sharing of information and for information-sharing agreements;
• enables the minister to enter into coordination agreements with the Nisga'a Nation or treaty first nations relating to the regulation of short-term rental accommodation by the Nisga'a Nation or treaty first nations;
• enables the coordination of regulation of short-term rental accommodations by local governments, including for the purposes of enforcement of local government bylaws relating to business licence requirements, and provides for other matters relating to the authority of local governments and other authority for making regulations.

 

[moosehead]

Air B and B's really should not be allowed unless owner is also living in. the unit....

 

New York just did this.   Smart. 

[King Heffy]

5 hours ago, moosehead said:

Air B and B's really should not be allowed unless owner is also living in. the unit....

 

New York just did this.   Smart. 

That's by far the best solution.

[Playoff Beered]

Rent Going Up? One Company’s Algorithm Could Be Why.

 

https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent

[Coconuts]

10 hours ago, Playoff Beered said:

Rent Going Up? One Company’s Algorithm Could Be Why.

 

https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent

 

How dystopian 

[Mando27]

17 hours ago, moosehead said:

Air B and B's really should not be allowed unless owner is also living in. the unit....

 

New York just did this.   Smart. 

I've always held the opinion that Air B and B should of been banned but this seems like a solid compromise.

[moosehead]

Just read this Van Sun online

 

VICTORIA — The New Democrats had some strong advice this week for property owners who’ve gone big on renting out several units on a short-term basis through Airbnb and other vacation platforms.

 

“You should probably be thinking about a new profit scheme in the very near future,” said Housing Minister Ravi Kahlon

[Master Mind]

Would be nice if there was a limit to the number of properties someone could own.

[6of1_halfdozenofother]

4 minutes ago, Master Mind said:

Would be nice if there was a limit to the number of properties someone could own.

 

Instead of limits, there should be escalator tax implications on each subsequent property in someone's possession.  And I don't know if they're subject to tax deductions or not, but it would be fair that owners of multiple properties should not have access to capital loss tax write-downs.  They have the money to purchase multiple real estate assets, they should face the full force of taxation.

[Coconuts]

15 hours ago, Master Mind said:

Would be nice if there was a limit to the number of properties someone could own.

 

15 hours ago, 6of1_halfdozenofother said:

 

Instead of limits, there should be escalator tax implications on each subsequent property in someone's possession.  And I don't know if they're subject to tax deductions or not, but it would be fair that owners of multiple properties should not have access to capital loss tax write-downs.  They have the money to purchase multiple real estate assets, they should face the full force of taxation.

 

Agreed on both counts. I'm sure folks would work to find workarounds regarding home ownership but it'd be a start. 

[The Arrogant Worms]

Meanwhile......

 

Dubai Homes Worth $844 Million in New Project Sell Out in Hours

https://www.bnnbloomberg.ca/dubai-homes-worth-844-million-in-new-project-sell-out-in-hours-1.1992509

[aGENT]

On 10/17/2023 at 8:54 AM, Mando27 said:

I've always held the opinion that Air B and B should of been banned but this seems like a solid compromise.

 

On 10/16/2023 at 2:56 PM, moosehead said:

Air B and B's really should not be allowed unless owner is also living in. the unit....

 

New York just did this.   Smart. 

 

Air BNB, VRBO etc isn't the problem. I don't even have a problem with Joe and Jane Doe working hard to buy a seperate vacation home that they use part time and (short term) rent out part of the time. That's not what's causing problems and is barking up the wrong tree IMO. Private property owners should be allowed to use their 1 or 2 properties as they see fit. It isn't individual home owners responsibility to fix the housing crisis. Though they should have to register those properties and any short term rentals on them, while being taxed (non primary residence, declare rental income etc) appropriately.

 

Investment companies that own tens (or more) properties however.... THAT is most definitely where the biggest problem lies.

[JIAHN]

Well, people on the Lower Mainland and Vancouver Island  do have a housing shortage, but alot of the rest of BC does not.

 

Take Dawson Creek where you can buy a house for under $200,000, and a lot for about $40,000 to $50,000

 

Or Prince Rupert where you can buy a 25 X 100 ft lot for $25,000

 

But IMO, people do not want to live in these places, and would rather rent where it is more metropolitan. 

 

In saying that.............

 

If the government would open up more land and develop lots themselves, it would lower land prices in the Lower Mainland and Vancouver Island.

 

But in saying that...........

 

People need to sacrifice and move away from the big cities, and into smaller towns.............business should do the same

 

 

Edited November 2, 2023 by JIAHN

[4petesake]

14 minutes ago, JIAHN said:

Well, people on the Lower Mainland and Vancouver Island  do have a housing shortage, but alot of the rest of BC does not.

 

Take Dawson Creek where you can buy a house for under $200,000, and a lot for about $40,000 to $50,000

 

Or Prince Rupert where you can buy a 25 X 100 ft lot for $25,000

 

But IMO, people do not want to live in these places, and would rather rent where it is more metropolitan. 

 

In saying that.............

 

If the government would open up more land and develop lots themselves, it would lower land prices in the Lower Mainland and Vancouver Island.

 

But in saying that...........

 

People need to sacrifice and move away from the big cities, and into smaller towns.............business should do the same

 

 

 

So many spectacular places in BC that are much more affordable for people that are willing to step away from what they know.
Some of the people we met while travelling the north this summer -

 

Met a younger couple with 3 kids while taking a short hike to see the Hixon Falls. They had moved from Aldergrove up to Quesnel for more affordable housing and because they loved the outdoors-camping, hiking, fishing, snowmobiling etc and hated traffic & congestion. 

 

Sat watching a mixed softball game on a beautiful summer evening in Mackenzie. BBQs going with coolers of beer, kids chasing each other on an adjacent diamond. Talked to two women who fell in love with the town while travelling & moved from Vancouver.

 

A single mom in Hudson Hope that came from the Okanagan for work. She was over the moon about all the support she and her child received from the community and how quickly they were accepted.

[Elias Pettersson]

13 hours ago, aGENT said:

 

 

Air BNB, VRBO etc isn't the problem. I don't even have a problem with Joe and Jane Doe working hard to buy a seperate vacation home that they use part time and (short term) rent out part of the time. That's not what's causing problems and is barking up the wrong tree IMO. Private property owners should be allowed to use their 1 or 2 properties as they see fit. It isn't individual home owners responsibility to fix the housing crisis. Though they should have to register those properties and any short term rentals on them, while being taxed (non primary residence, declare rental income etc) appropriately.

 

Investment companies that own tens (or more) properties however.... THAT is most definitely where the biggest problem lies.

 

Don't think that is the problem.  Investment companies for the most part are buying up apartment buildings and commercial properties, they aren't going around and scooping up individual condos or detached homes.  

 

The biggest problem in regard to affordable housing is a LACK OF INVENTORY.  That's it.  You increase the inventory and you do two things.  You increase supply so there are more homes on the market for sale, and then you ultimately bring down prices as well depending on how much more inventory you can put out into the market.

 

The reason why we have a lack of inventory is not because corporations have been scooping up condos and detached homes.  It's because of all of the red tape from municipal and provincial governments in regard to the building of more housing in general.  It takes up to 8 years for a developer to buy a piece of land and then ultimately complete a hi-rise development on that land.  It takes a builder over a year just to get a permit to build a house.  This is the problem.  And this problem has not been addressed in many years, so as a result inventory levels have shrunk by almost 50% since 2019.  There were over 15,000 properties for sale at any given time in 2019 in Greater Vancouver.  In 2023 that number has shrunk to under 8,000.  That's almost a 50% drop in inventory levels in only 4 years.

 

This is why you saw such a huge price increase after COVID in 2021.  2021 was the greatest year in Vancouver real estate history.  Over 44,000 properties were sold in Greater Vancouver in 2021.  In 2023 that number is expected to be around 29,000.  That's a 35% drop in sales, which is why our inventory levels have dropped considerably.

 

You would think the market would be tanking right now because of the high interest rates, but that is not the case in Vancouver.  Because of a lack of inventory, prices have remained relatively stable all year.  Prices in October are pretty much the same as they were in January this year.  Nothing has changed even though interest rates have doubled in the last few months...

[aGENT]

4 hours ago, Elias Pettersson said:

 

Don't think that is the problem.  Investment companies for the most part are buying up apartment buildings and commercial properties, they aren't going around and scooping up individual condos or detached homes.  

 

The biggest problem in regard to affordable housing is a LACK OF INVENTORY.  That's it.  You increase the inventory and you do two things.  You increase supply so there are more homes on the market for sale, and then you ultimately bring down prices as well depending on how much more inventory you can put out into the market.

 

The reason why we have a lack of inventory is not because corporations have been scooping up condos and detached homes.  It's because of all of the red tape from municipal and provincial governments in regard to the building of more housing in general.  It takes up to 8 years for a developer to buy a piece of land and then ultimately complete a hi-rise development on that land.  It takes a builder over a year just to get a permit to build a house.  This is the problem.  And this problem has not been addressed in many years, so as a result inventory levels have shrunk by almost 50% since 2019.  There were over 15,000 properties for sale at any given time in 2019 in Greater Vancouver.  In 2023 that number has shrunk to under 8,000.  That's almost a 50% drop in inventory levels in only 4 years.

 

This is why you saw such a huge price increase after COVID in 2021.  2021 was the greatest year in Vancouver real estate history.  Over 44,000 properties were sold in Greater Vancouver in 2021.  In 2023 that number is expected to be around 29,000.  That's a 35% drop in sales, which is why our inventory levels have dropped considerably.

 

You would think the market would be tanking right now because of the high interest rates, but that is not the case in Vancouver.  Because of a lack of inventory, prices have remained relatively stable all year.  Prices in October are pretty much the same as they were in January this year.  Nothing has changed even though interest rates have doubled in the last few months...

 

 

Oh absolutely (other than buying up apartment buildings IS part of the problem).

 

Though not all of it is red tape either. We also don't have enough workers to build as fast as we "need" to.

 

We (the government) should also be building a crap-tonne of public/co-op housing that we're not.

[6of1_halfdozenofother]

1 hour ago, aGENT said:

Oh absolutely (other than buying up apartment buildings IS part of the problem).

 

Though not all of it is red tape either. We also don't have enough workers to build as fast as we "need" to.

 

We (the government) should also be building a crap-tonne of public/co-op housing that we're not.

 

But haven't you heard?  Developers and construction industry and real estate dealers alike are such altruists that they'll flood the market with supply to the point where they create a flood of inventory that will handily cut into their profit margins allowing them to earn less on higher overall costs borne and higher risk of being left unable to move their product for a neat little profit, all for the greater good!  Bless their bleeding hearts!  

[/s] 

 

The construction industry is in it for themselves, and developers will generally want to make top dollar on anything they seek to develop.  Flooding the market with inventory to tank the prices runs against what would be in their interest, especially since labour and material costs have only gone up.

 

Public housing is definitely what North America as a whole needs - but oh no no no, don't you dare get government involved in housing the unhoused and providing decent housing for those who can't afford market prices, lest the socialists take over the country!  

[Taxi]

I don't trust the government one bit on this. For the past few decades they've been siding with NIMBYs who've been purposely limiting construction of new homes to preserve the character of their "neighbourhoods" ***cough cough*** property values. The government has limited construction in places where there aren't even people living. For example, the area around Main on the East side is still largely empty warehouses and industrial/commercial sites. It would vastly decrease the profitability of developers to open up huge areas for development at once. They, instead, trickle out luxury boxes that are unsuitable for families.

 

The government only cares about the rich citizens who already own housing and the developers.

 

 

[Bob Long]

16 minutes ago, Taxi said:

I don't trust the government one bit on this. For the past few decades they've been siding with NIMBYs who've been purposely limiting construction of new homes to preserve the character of their "neighbourhoods" ***cough cough*** property values. The government has limited construction in places where there aren't even people living. For example, the area around Main on the East side is still largely empty warehouses and industrial/commercial sites. It would vastly decrease the profitability of developers to open up huge areas for development at once. They, instead, trickle out luxury boxes that are unsuitable for families.

 

The government only cares about the rich citizens who already own housing and the developers.

 

 

 

 

are you talking about Ken Sim or the province? Vancouver has actually rezoned almost every block to be open for multi-family developments. Sim is talking a lot about massive new developments for East Van. 

 

https://vancouver.ca/home-property-development/rezoning-applications.aspx

 

 

[JIAHN]

8 hours ago, 4petesake said:

 

So many spectacular places in BC that are much more affordable for people that are willing to step away from what they know.
Some of the people we met while travelling the north this summer -

 

Met a younger couple with 3 kids while taking a short hike to see the Hixon Falls. They had moved from Aldergrove up to Quesnel for more affordable housing and because they loved the outdoors-camping, hiking, fishing, snowmobiling etc and hated traffic & congestion. 

 

Sat watching a mixed softball game on a beautiful summer evening in Mackenzie. BBQs going with coolers of beer, kids chasing each other on an adjacent diamond. Talked to two women who fell in love with the town while travelling & moved from Vancouver.

 

A single mom in Hudson Hope that came from the Okanagan for work. She was over the moon about all the support she and her child received from the community and how quickly they were accepted.

 

What a seriously great response!

 

It has occurred to me on more than one occasion, that It is actually the last 40 years, that people do not want to move or give up their security of what they know. No sense of adventure. Both my kids moved away from family, and both were able to grow their wealth much faster than their class-mates. Both are in the $150,000 per year, with the ability to earn even more. (I am proud of them both, even though it was more difficult to see them)

 

People need to realize exactly how easy it is to pay a house off, when not paying a salary and a half each month for rent. I actually know a family who moved north and paid their house off in 5 years....they are now about 35 years old, with no housing costs, and are banking their pay checks like crazy. One is buying the business he started working for, when they moved. Cash!

 

I believe he calls it freedom 40....lol (Good on him!)

 

And that is just the housing! Like you have indicated, the quality of like is so much better, and the community in some places, actually raises you kids with you....which is much like it was 50 years ago. And people actually are friendly and not guarded, and will knock on your door if they see you have a flat tire. No yelling or screaming, etc.

 

I am in Prince Rupert now, and the community is awesome! When you meet a person, chances are you will see them again, within a few days......so less pressure!

 

Anyways, it is a personal choice, but the point is there is actually choices, people just need to get out and explore those choices.

 

[JIAHN]

I wonder, if 50,000 people moved out of the Lower Mainland/ Van Island...........would there be high rents, and a housing shortage?