- Vancity Lookout
- Posts
- Why the construction of new rental housing is facing headwinds
Why the construction of new rental housing is facing headwinds
Plus, faulty COVID tests?
Geoff Sharpe
December 22, 2023
Good morning —
Well, here we are. The last newsletter edition of 2023. It feels like only yesterday we started Vancity Lookout (and by yesterday, I mean January).
A big thank you to everyone who’s been with us on this journey. It’s a crazy time to start a local news publication, but somehow, against all odds, we’ve succeeded. And that’s only because so many of you keep reading us every day.
Today we’ve got some bad news on new rental constructions, events around town and an update on some problematic COVID tests.
Let’s get to it!
— Geoff Sharpe, Vancity Lookout editor
If you find this newsletter valuable, please consider forwarding it to your friends. New to the Lookout? Sign-up for free.
WEATHER
Friday: 6 🌡️ -1 | 🌧️
Saturday: 4 🌡️ -2 | 🌤️
Sunday: 4 🌡️ 2 | ☁️
Monday: 7 🌡️ 3 | ☁️
HOUSING
Why the construction of new rental housing is facing headwinds
What happened: In the midst of many levels of government getting serious about building more housing, the Canadian Mortgage and Housing Corp. issued a stark warning about the decline in potential rental construction in the coming years, according to Business in Vancouver.
What they’re calling the “perfect storm” of problems — financing, rising construction costs and fees — are making many projects unviable. The report noted nine out of 10 housing developers said their projects were no longer financially feasible.
The report noted only well-capitalized developers can afford to build them because they do not generate up front revenue from pre-sales.
Federal response: The government’s big policy action to increase rental construction was to end the GST on new rental construction, according to Global, a move that was lauded by the industry. It should be noted this report was commissioned before the GST was removed.
A report from RBC noted that developers preferred to build market condos over rental units because they weren’t as profitable.
Yes, but: One developer noted that the recent increase in the development cost charges by Metro Vancouver will also have a negative impact.
As reported by Storeys, the National Housing Accord was released in August that noted that Canada needed to build two million new purpose-built rentals by 2030, meaning home building would need to increase by three times in order to hit that goal. The police called on low-cost financing for rental construction, a property acquisition program for non-profits, an immigration strategy to bring in new trades workers and a Homelessness Prevention and Housing Benefit, among other policies.
Looking ahead: The RBC report noted that there was no quick solution, and any changes will take a while to be felt with lower rents. With rents rising above $3,000 for a one-bedroom, Vancouver and most major Canadian cities will continue to deal with this problem for the foreseeable future.
In other news: Commercial real estate in Vancouver is dealing with the opposite problem. According to Business in Vancouver, with more lease options for tenants and higher vacancy rates. Office space has increased in downtown Vancouver by 12 percent. It’s teh first time in 20 years that it’s now a tenants’ market.
Affordability getting worse: According to a new report from RBC, it’s increasingly becoming unaffordable for people to purchase a home. In Vancouver, the average household would need a share of income of 102.6 percent in order to purchase a home. The average in Canada is 62.5 percent.
VANCOUVER NUMBERS
🔥 70,406: The number of calls the Vancouver Fire Rescue Service dealt with in 2023, the highest on record. The next highest number was 66,845 in 2017. [CityNews]
✈️ 70,000: The average number of travellers that are expected to fly through YVR next week. [CTV]
⛴️ 900,000: The number of passengers expected to use BC Ferries over the holidays. The company has scheduled an additional 150 sailings to deal with increased demand. But will it be enough… [Business in Vancouver]
👮 268: The number of people arrested as part of a Vancouver police crackdown on shoplifting between Nov. 30 and Dec. 15. [CityNews]
HEALTH
Green boxed rapid COVID tests not as reliable as sold
What happened: The supplier of the ubiquitous light green rapid test kits, BTNX, deleted data from a study of its effectiveness when it applied to Health Canada for supply contracts, Global News reported.
The story, reported over the course of a year, reveals that the rapid tests many across the country relied upon were not as accurate as advertised, and are prone for giving false negative tests. Researchers told Global that the altered study results made the test kits seem more reliable and more sensitive than they really were.
Company origins: Before the pandemic, Markham-based BTNX was mostly known for test kits that enabled drug users to test for fentanyl contamination. The federal government gave the company multiple contracts to procure the rapid test kits, worth some $2 billion.
How they did it: Global found the original study from the supplier, based in China, from a distributor in Germany, and compared it to the study submitted to Health Canada by BTNX when it discovered the missing data.
Company’s response: In a statement to the broadcaster, a lawyer representing BTNX said “We have at all times operated with integrity and transparency, and have manufactured and distributed our COVID-19 rapid tests in accordance with Health Canada and international standards.”
THE AGENDA
👮 In what may be in the running for one of the oddest stories of 2023, a 72-year-old woman chased off a naked man who had broke into her home. Police arrived and arrested the man. [Vancouver Sun]
⚡ BC is struggling with a lack of power due to drought conditions. About a fifth of the province’s energy has been imported this year. The last time this happened was 10 years ago. BC Hydro is asking people to conserve power. [CBC]
🚨 Lord Byng Secondary School was in lockdown Thursday morning after a gun scare. It turned out a teacher had brought a vintage rifle for a presentation. [CTV]
❄️ It’s a sad time to be a ski bum, as the North Shore mountains deal with a huge lack of snow, with Mount Seymour closing for the holidays. [CityNews]
👎 A new report about challenges faced by Vancouver’s park rangers, who’ve had to deal with many unhoused people facing challenges, has resulted in a blame game between the park board and city council about who’s to blame for the poor working conditions. [Global]
💰 That’s a pricy fountain! It will cost around $7 million to repair the Lost Lagoon Jubilee Fountain in Stanley Park. The fountain has been in operation for 80 years. [Urbanized]
👮 After many long years for the parents of Amanda Todd, the Dutch man who harassed and extorted their daughter, eventually causing her to commit suicide, was sentenced to six years in prison in Amsterdam. The man’s lawyer says he will appeal the ruling. [CTV]
1️⃣ How has Mayor Ken Sim fared after one year in office? The Tyee has a comprehensive breakdown with interviews from experts across the city. [The Tyee]
🏠 First it was Vancouver, now Vancouver’s next door neighbour. The federal government announced $43 million in housing funding for Burnaby as part of the Housing Accelerator Fund. Vancouver received $115 million earlier this week. Burnaby promised to reduce red tape, simplify approvals and adopt zoning changes in order to receive the money. [Urbanized]
SURVEY
What readers said were the top issues of the year
On Wednesday we asked Lookout readers for their top stories of the year. Here’s what you selected:
The toxic drug crisis - 63%
The rising cost of renting - 59%
The new housing paradigm - 39%
The police and public safety - 34%
A tie between the end of the park board and the encampment clearing - 29%
Reader: There has been a real shift in the perception of housing as an issue in the past year. It used to be that those who complained about high costs were just whiners who needed to stop buying so many lattes or so much avocado toast. While these kinds of dismissive takes still definitely exist, some awareness that most people who don't already own their own homes are struggling seems to have finally broken through.
Geoff: This is a very astute observation. I still find some people believe this, but the reality of the situation makes it hard to ignore. I can’t even remember the last time I saw a story like that! The big shift is that policymakers are finally taking the issue seriously.
Reader: Working in the rental housing and cooperative housing industries, I have never seen such dramatic increases in people facing homelessness. Seniors and youth are the most tragically affected. I’ve seen seniors sleeping in their cars, applying for apartments where the rent would consume 85 percent of their income; young entry level workers who, even as a couple, face rents in excess of 60 percent of their full time employment income. This is no longer the exception, but the norm and it’s frightening.
Geoff: Could not agree more. Research is clear that homelessness is a direct result of high housing prices. Until we sort that out, we will have increased levels of unhoused people throughout the city.
Reader: Abolishing the Park Board is the most obvious example of how Sim and ABC “rule” the city. It seems impossible that a democratically elected board can be abolished-just like that. I’m already tired of Sim and his endless “swagger.”
Geoff: I will point out a counterargument and say that the mechanism by which the mayor is doing this is within his legal purview. Does that make it right? That’s up for voters to decide.
EVENT GUIDE
PNE Winter Fair | PNE | Now until Dec. 23 | Solve puzzles, crack riddles, check out the Winter Lights and meet Santa. It’s fun for the family | Starting at $12
Santa Clauses are Coming to Town… Metropolis at Metrotown! | Metropolis | Now until Dec. 30 | Get your photo with santa, along with other activities | Free
Granville Island Festival of Lights | Granville Island | Now until Jan. 3 | Check out the winter lights display | Free
Elf: The Musical | Stanley Industrial Alliance Stage | Nov. 2-Dec. 31 | Come see Elf like you’ve never seen it before, as an on-stage musical | Starting at $46
Vancouver Christmas Market | Jack Poole Plaza | Nov. 16-Dec. 24 | One of the best Christmas festivals in the city, come celebrate the Christmas spirit with food, drinks and other vendors | Starting at $15.99
Steveston Festival fo Trees | The Cannery | Now until Jan. 7 | See the winter wonderland of decorative trees | Free
HISTORY
Here’s a shot from 1955. Now that’s an old streetcar!
COMMUNITY HIGHLIGHTS
Soccer fans rejoice. Lionel Messi is set to play the Whitecaps at BC Place on May 25. Tickets are not yet available. [The Province]
If you’re looking to travel in February, you can score tickets to Paris for $187. [Vancouver is Awesome]
A popular Turkish restaurant in Burnaby, Anatoli’s Gate, now has a spot in Vancouver at 1039 Granville St.
A reminder that you can ride on public transit for free on New Year’s Eve. [Urbanized]
Why this Japanese snack bar breaks all your perceptions. [Vancity Lookout]
Want to have your announcement featured? Learn how here.
GAME TIME
This is the last Wordle of 2023. Can you guess what it is? Play it here.
What did you think of today's newsletter? |