As we’ve reported before, there is a maddeningly distorted perception in the Lower Mainland of the impact of foreign buyers on the housing crisis. 86% of BC residents believe the government should be doing more to curb their influence on our housing market.
But according to a recent report by the B.C.’s Ministry of Finance, there’s not much more that needs to be done. So far in 2018, only a fraction of real estate transactions have involved foreign nationals – just about 1%. There are virtually no Lower Mainland communities where these numbers have gone up.
It’s becoming more and more preposterous to lay all of our housing problems at the foot of the foreigner.
Despite these numbers, housing costs continue to rise. The average cost of a home in Greater Vancouver is now at $1,093,600 – an increase of 10% over a year earlier. There’s no way we can use the foreign buyer menace as a scapegoat for this increase.
We at ENM can find many other causes for ballooning housing costs that can be meaningfully addressed by the provincial and federal governments. Our co-founder, Daniel Greenhalgh, points to the myriad new tariffs and fees imposed by the provincial government that directly add to the costs of new homes and developments.
“In the last five to ten years, and especially since the NDP’s have taken power provincially, we’re seeing so many new fees being levied on developers and new construction. The result is higher construction costs here than anywhere else in the country. With every new tax that adds to the cost of a property, it just exacerbates the housing crisis that’s at the forefront of everyone’s mind.
“It’s clear to me that the best weapon against outrageous costs is increasing the supply of affordable housing. We need to have streamlined development, a streamlined permitting process, and incentives to build purpose-built rental properties like our new development, Willoughby Walk. Instead, there seems to be this popular belief that we can tax our way out of the crisis. To me, that’s absurd.”
Meanwhile, housing sales are at their lowest point since 2000. The costs are simply out of reach for the vast majority of potential homebuyers. By placing the blame on the foreign menace, the provincial government is abdicating its responsibility to tackle its number one issue: affordable housing.
