A case of not-so affordable housing

Good morning,

And especially good morning to Vancouver’s Philip Kim, who won gold in the very first Olympic breaking (break dancing) event. 

And some big news here at Vancity Lookout. We’re only 200 subscribers away from 25,000. If you could consider forwarding this newsletter to your friends or family, or sharing this link, we’d greatly appreciate it. Thanks for being with us on this journey and here’s to many, many more years ahead with you all.

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Today we’ve got a breakdown on a big housing kerfuffle, over how and what housing programs the provincial government should be funding. 

Let’s dive in!

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WEATHER

Monday: 23 🌡️ 15 | ☁️

Tuesday: 19 🌡️ 16 | ☁️

Wednesday: 22 🌡️ 15 | 🌤️

HOUSING

A case of not-so affordable housing

What happened: The BC government faced a barrage of criticism last week after it was revealed by the Globe and Mail that a publicly-funded housing project in Kitsilano, which was designed to keep 80% of units affordable for middle-income households, resulted in studio units listed at a rental price of $2,600 per month while two-bedroom units were $4,200 a month. 

As part of the government’s funding, the units are set at this price and cannot go above market rate for 10 years. The development also has 14 units that would be set at below-market prices, for which the city waived development cost levy waivers. Many have been criticizing the high price tag, where the vast majority of families would not be able to afford it.

Background: The units were funded as part of HousingHub, a program to help build housing for middle-income earners, or families earning up to $191,910. Developers get access to lower-interest rate financing in exchange for keeping a certain number of homes set to below-market rental rates.

• The government has also set aside $2 billion through a program called BC Builds to build more homes for middle-income families, as well as $950 million for grants and other funding. This is separate from BC Housing programs, which are targeted at lower-income families.  The program goal isn’t to develop low-cost housing, but to address supply issues.

Yes, but: Housing Minister Ravi Khalon noted that the housing project did not cost the government, specifically taxpayers, anything and allowed the creation of 14 affordable homes for low-income people that would otherwise not be built, according to the Vancouver Sun. Of course, as noted by columnist Vaughn Palmer, financing is not in fact free. 

The CEO of HousingHub noted that the program is not meant to be about affordability, rather about increasing market-rate housing rentals, according to CBC.

Also of note was how Kahlon framed the issue, saying, “Anyone that suggests that we’re going to be able to solve the housing crisis without increasing some form of housing supply is dreaming,” reinforcing the government’s current approach which is to focus on not only targeted supply to those who need it, but by expanding housing supply everywhere.

Why middle income: While it’s obvious that low-income families cannot afford housing and therefore need help, it’s also true many middle-income families cannot either. These types of programs target families who don’t qualify for provincial housing programs but still struggle to afford homes in the region, according to the Tyee. 

• Looking abroad, BC Builds is modelled after programs used in Singapore and Vienna. In fact, Vienna’s housing is primarily targeted to middle-class residents through subsidized rental and ownership programs, according to Smart Density. The city is considered a model for affordable housing.

A good question: Andy Yan, director of Simon Fraser University’s City Program, raised an important point in the Globe story, which is why the provincial government isn’t taking an equity stake in the development if they are subsidizing the building of the homes. This is a common practice for private lenders for instance. 

Zoom out: It gets at a bigger debate amongst housing experts. On one side are those who argue that housing can be solved by supply, that by increasing the number of units, house prices will fall. These people point to places like Austin that have sustained a huge housing surge, and have seen rents and prices drop recently, as well as Tokyo which has sustained lower priced housing and oversupply. 

• On the other side are experts like Patrick Condon, who say it’s a financialization issue, that housing is not in fact tied to demand, and that building more supply won’t solve the underlying issue of housing as an investment, as home building cannot keep up with investor demand and capital.

In other news: Vancouver is number one… in rental housing prices that is. According to Rentals.ca, Vancouver rental prices were  $2,761 per month for a rental one-bedroom apartment in July. The good news? Year-over-year price has fallen by 8%, though you could be forgiven for not noticing. The price for a two-bedroom has fallen 6.4% from last year and currently sits at $3,666.

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VANCOUVER NUMBERS

💰 $44,000: The cost of overtime for police providing security to Prince Harry and Meghan Markle’s three-day appearance at the Invictus Games in Vancouver in February. [CTV]

🏗️ 2: The number of weeks it’s going to take to remove the crane that fell at the fire in the Dunbar neighbourhood last week. [Chilliwack Progress]

MEMBERS ONLY

Insider: What happens during a transit death spiral?

This is a member’s only story on transit death spirals, a major issue facing underfunded transit systems. The story brings examples from Ottawa, which is undergoing it’s own potential death spiral, and offers lessons to Vancouver. 

In a lot of ways, the start of the spiral is no one’s fault. When COVID swept across the globe in 2020, it upended the underlying logic of transit systems almost everywhere. Ottawa was no exception.

In Vancouver: It’s a different problem out west, where ridership has rebounded to pre-pandemic levels, and has led to overcrowding on many routes, according to TransLink.

But since 2020, OC Transpo has been slower to recover ridership than other cities across the country. At the same time it has struggled with an LRT line beset by problems, and a bus service plagued by unreliability.

As a result, ridership has lagged. Now, OC Transpo has announced that starting Aug. 26, it will cut LRT service in half during off-peak daytime and nighttime hours.

Up for debate

Insider members also participated in a survey about how to solve TransLink’s funding crisis, which if nothing is done, could result in 50% of bus service reduction to the region, amongst other cuts. 

Here’s what readers voted on as a potential solution to the crisis.

Here’s what some readers said:

Want to get these types of stories, participate in debates and most importantly, fund local news in Vancouver? Become an Insider member today and join 400+ other locals.  

THE AGENDA

🐕 As a dog owner, this one’s near and dear to my heart. There’s a new petition circulating calling on the federal government to end the practice of pet discrimination for renters in their Canadian Renters’ Bill of Rights. The no-pet clause in many rental agreements means it’s hard for pet owners to find places (I know this from experience). [Global]

👎 Remember that grocer's bread-fixing scandal? Well, Loblaws and Sobeys are now embroiled in a new scandal. The Competition Bureau of Canada says the property controls used by the companies on commercial real estate make it practically impossible for competitors to open nearby. [Urbanized]

🔥 While clean-up is still ongoing at the site of the construction fire in Dunbar, everyone, except those whose homes were burnt down, were able to return to their homes. [Vancouver Sun]

❌ Speaking of fires, the vacant apartment that caught fire last week in Mount Pleasant will be demolished. Neighbours had expressed anger that the property was left vacant for more than two years before the fire. [Global News]

✈️ As a kid, I remember many a summer seeing the hulking red behemoths, the Martin Mars water bombers, picking up water at Sproat Lake and soaring through the air to fight forest fires. Now the bomber is undertaking a different journey, heading to the BC Aviation Museum in North Saanich where it will be viewable as of Sept. 28. [Vancouver Sun]

🪧 We could soon be in for a country-wide rail strike or lockout. Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. cautioned that a work stoppage could take place on Aug. 22, and would essentially shut down the Port of Vancouver and rail lines across Canada. About 9,300 conductors, engineers and yard workers have been negotiating for months for a new agreement. [Vancouver Sun]

👮 A 23-year-old man who was assaulted at Main and Hastings died of his injuries. Investigators say the man who died knew his assailant, and that there is no risk to the public. No arrests have been made. [Global News]

In provincial election news, retired Vancouver Police Department Inspector Terry Yung has been chosen as the candidate for the BC NDP in Vancouver Yaletown, as no other candidates are running. The riding is newly created, and was partially represented by MLA Brenda Bailey who will now be running Vancouver-South Granville. Yung is married to ABC city Coun. Sarah Kirby-Yung. [Urbanized]

WEEKEND GUIDE

Summer Movie Nights | šxʷƛ̓ənəq Xwtl'e7énḵ Square (Vancouver Art Gallery North Plaza) | Aug 15, 5 PM | Join us this Thursday for Spiderman: Into the Spiderverse! Participate in a cosplay costume contest and enjoy family-friendly entertainment before the movie! | Learn more [Sponsored]

Monsoon Festival of Performing Arts | Different locations | Until August 18 | Shows and performing arts celebrating South Asian artists | Learn more

Meet Me in Gastown | Gastown | Aug. 15, 4 pm-8 pm | Performances from the Vancouver Metropolitan Orchestra and street food from local restaurants | Free

Summer Workshop Series | Arts Club Theatre Company | Multiple dates | Workshops on acting, joke writing, character development and more | Pay what you can

PNE Fair | 2901 E Hastings St | Aug 17 to Sept. 2, 11 am-11 pm | The popular fair is back! | Tickets

Richmond Garlic Festival | 2771 Westminster Highway | Aug 17, 10 am-3 pm | Live bird of prey demonstration, children’s area, farmers market and more | Free

Bespoke Market | Between Fir Street and West 8th | Aug. 17-18, 12 pm-6 pm | Ceramics, slow fashion, jewelry, food and beverages | Free

Emo Night Vancouver: So Last Summer | Rickshaw Theatre | Aug. 17, 7:30 pm | Local bands play classic emo hits | Tickets $25

COMEDY BANG! BANG! | Vogue Theatre | Aug. 18, 7 pm | Comedy show with Scott Aukerman and my personal favourite Paul F. Tompkins (Mr. Peanutbutter from Netflix’s BoJack) | Tickets starting at $39

Vintage Expo Day 2 | Vancouver Art Gallery North Plaza | Aug, 18, 11 am-6 pm | Come shop, find some new vintage clothes and grab some food | Free

Cantopop Festival + Asian Market | Beaumont Studios | Aug. 18, 12 pm-10 pm | Come listen to Cantonese pop music, and grab some delicious food | Tickets $30

GOOD NEWS MONDAY

Start your day off with good news:

Canada broke records this Olympics, winning nine gold and 27 total medals, the country’s most for a non-boycotted Olympic games. The summer Olympics hold a place in my heart after my brother participated in the 2020 Tokyo Olympics in triathlon. While this good news story isn’t specifically about Vancouver, many of the city’s athletes did participate! Congrats to everyone who represented the country.

FOOD PREVIEW

Northern Chinese and Korean BBQ

BBQ is a universal food type. Meats grilled over heat, every culture has it.

Tomorrow’s latest restaurant review is a Korean and Chinese restaurant from a little province you’ve probably never heard of. Close to straddling the border with North Korea, the food comes from Jilin province, with its own interesting backstory. 

The restaurant brings together Chinese and Korean cuisine and specializes in BBQ skewers. Meat lovers, if you’re looking for something new, then this is a place to try.

To discover this place and read my review, click here to instantly subscribe to the Lookout’s food and drink newsletter and get this story tomorrow in your inbox.

PHOTO OF THE DAY

A man filmed a crow for two years, dubbing him Fabian. The crow is alive and well, in this very cute shot.

GAME TIME

COMMUNITY HIGHLIGHTS

• This local orchestra plays Studio Ghibli music, so I’m not surprised they’re so popular. [Vancouver Sun]

• Making a trip to Richmond Night Market this summer? The Lookout’s free guide has you covered. 

• Adidas is building a massive futuristic store called “Home of Sport” in this downtown location. 

• Thai Canucks broadcaster revealed that his leukemia was in remission thanks to a stem cell donor. [Vancouver Sun]

• It’s crazy how shows like The Last of Us are able to transform spots in Vancouver like this. [Reddit]

• Want to have your announcement featured? Learn how here.

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