B.C.'s new housing-related bills 'transformational' but changes will take time, advocate cautions

As the B.C. government has introduced a new set of bills in an attempt to increase housing supply amid an affordability crisis, one housing advocate cautions the changes will take time.

"We do have to keep in mind that these are long-term fixes," said Leo Spalteholz with the housing advocacy group Homes for Living, describing the changes as a "transformational" shift in housing policy.

"I think we'll see good positive results on affordability in about five years." 

After cracking down on short-term rentals, B.C. introduced legislation that takes aim at single-family zoning, reforms the way municipalities collect fees from developers, and sets minimum requirements for building heights and densities that municipalities must allow.

"All of it is co-ordinated and it works well together," said B.C. Housing Minister Ravi Kahlon on Nov. 8. 

"Essentially what it allows us to do is plan our communities in the beginning, and when we're done planning, we can work the plan, and get the housing we need built."

Data gathered from the 2021 census said B.C. ranks as the most unaffordable province for housing in Canada, due largely to the number of people paying high rents to live in downtown Vancouver.

According to January 2023 data from the Canadian Mortgage and Housing Corporation, the average rent in Vancouver on a two-bedroom apartment is $2,504. Attached homes in Metro Vancouver sold for an average $1.1 million in October, according to the Real Estate Board of Vancouver.

The bills amount to the biggest reform in housing policy seen in B.C. in a generation, according to Anne McMullin, president and CEO of the Urban Development Institute, a non-profit association.

McMullin said the combination of high land costs, interest rates, and construction costs have put many building applications on pause.

"The cost to build are so high that in many cases we're not even launching projects. Because the cost is so high that people can't even afford what we would build," McMullin said.

McMullin said the changes will speed up approvals of housing, and spell more certainty for housing developers by determining land use and fees upfront.

Spalteholz said single-family homes are likely to remain expensive, but that the biggest changes to affordability will be in townhomes and multiplexes.

He said he expects pressures on the rental market will ease first.

'More about politics than good public policy'

B.C. United's Kevin Falcon, leader of the official opposition, is highly critical of the proposals.

"The rushed nature, the lack of credible answers on a lot of basic questions, leads me to believe this is more about politics than good public policy," Falcon said on Nov. 8.

He also raised concerns about the pressures faced on infrastructure like sewers, water and power, and the potential for high fees to be imposed on small developers. 

Falcon didn't offer an alternate proposal on increasing supply, but said the party will release their own housing strategy this year.

The province said more policy details are expected in the coming weeks.

"This isn't something we just created on the back of a napkin a couple weeks ago. This is work that has been happening for years," Kahlon said on Nov 8.

'Introducing legislation is the easy part': UBCM

Municipalities are starting to digest the implications of the announcements, said Trish Mandewo, president of the Union of B.C. Municipalities (UBCM). 

She said local governments are excited to see the province taking action on housing but are on the lookout for unintended consequences and gaps.

"Introducing legislation is the easy part," Mandewo said. "The hard part will be the implementation, and then looking at the policies and the changes that will be needed."

Initial concerns from municipalities include infrastructure capacity, the staff needed to update official community plans, and money to pay for increased planning. She said some small communities are talking about increasing taxes in order to deliver on all the requirements.

"There will be challenges ahead and local governments who want to know if the province will be there to work with them to address these issues," Mandewo said.

Kahon said they will continue to work with local governments on infrastructure needs, including providing more schools.

Mandewo also said she wants to see more investments and a plan to provide affordable housing — something echoed by Spalteholz — and that more time is needed to assess the legislation's impacts on local governments and affordability.

"The devil is in the details," she said.