April 26, 2023 – BCREA Government Relations Update

On Wednesday, April 26, we were joined by Trevor Hargreaves, Senior Vice President of Policy Research & Advocacy, Marketing and Communications, BCREA. Trevor walked through the provincial housing policy landscape, BCREA’s upcoming Government Liaison Days conference being hosted in Victoria, and BCREA’s advocacy focus going forward in 2023.

• Session slide deck (BCREA)

The following questions were asked but, due to time constraints, were not answered during the session. The answers are enclosed below:

1. Aren’t “flippers” who are looking for non-livable housing and converting it to livable housing adding to more affordable housing supply? If so, why does the government view flipping negatively?

   The government is probably not targeting “non-livable” housing. However, if someone wants to purchase such housing (likely at well below similar well-maintained units), complete a series of improvements, then re-sell, they will likely be counting on a rise in market value to provide some level of profit over and above their inputs. It may be difficult to argue that a prospective homeowner would be better off by purchasing the property themself and making the improvements, without having to pay the profit margin to “the flipper”. The argument could also be made that the prospective homeowner may not have the expertise to carry out the renovations themselves, so could be running a high level of financial risk. This is not a simple issue.

2. Won’t blanket rezoning for all single-detached lots to allow multi-unit housing drive up multiple offers (competition) for single-detached homes?  

   Only if the demand for these lots exceeds the supply. This is why we are recommending to the province that the zoning reform apply to all single family zoned lots in the province. If it is limited to certain lots in certain cities or neighbourhoods, then an artificial shortage will exist, and demand could exceed supply, resulting in bidding wars and price escalation. By essentially creating an “unlimited supply”, the opportunity for multiple offers will be greatly reduced.

3. How do we promote affordable housing without devaluing or demolishing recently constructed single family homes?

   The market will determine the best opportunities for redevelopment of existing single family homes into missing middle multiplexes. In any given neighbourhood, older, smaller homes will be better candidates for conversion/redevelopment than new, larger homes. As well, many cities now have waste diversion policies in place for any residential demolitions. Some have gone so far as requiring “deconstruction” so maximize the building products from the older homes that can be recycled.

•