As of 2022, 1.8 billion people globally do not have access to adequate and affordable housing. Of those 1.8 billion people, 4.4 million live in Canada (around 10% of the Canadian population). The real estate hotspots (where the crisis is the worst) in Canada include Ontario, Quebec, and British Columbia (BC). While each of these provinces’ governments are coming up with various strategies to combat the housing crisis, BC seems to be doing the most—and the most effectively. They have a clear 6-point plan they intend to follow, whereas the other provinces (Ontario, Quebec, Nova Scotia, etc) seem to have much more singular plans that are vague and half-baked. The provincial government of British Columbia is stepping up to meet their citizens’ needs.
The BC government’s first step in combating the housing crisis is to make it illegal to operate a short term rental unit that is not your primary residence. This new regulation is set to take place on May 1st, 2024. The new legislation prioritises giving permanent housing to BC residents over tourists seeking temporary accommodation. By making it harder for tourists to take up space, there is more room for people who are homeless/looking for a home to rent or own. Unfortunately, the BC government is not compensating those who use short term rentals as their primary source of income. There is much debate between the government and rental operators as to the legality of this legislation, with the latter protesting “expropriation without compensation.”
The government’s second strategy to reduce the cost, or increase the availability of housing, is to expand the speculation and vacancy tax. Every year, landlords whose real estate resides in certain communities have to pay a speculation and vacancy tax on their vacant lots. In 2024, the BC government is adding thirteen more communities to the list. Those new communities include: Vernon, Coldstream, Penticton, Summerland, Lake Country, Peachland, Courtenay, Comox, Cumberland, Parksville, Qualicum Beach, Salmon Arm, and Kamloops. These added communities will bring the total number up to 59 communities/cities. If this plan works, it is very likely that the BC government will expand that number even further.
The intention of this increase in zoning is to further discourage landlords from having empty residences. In order to avoid paying more taxes than they already do, landlords are now more likely to get people to move into their lots. When there are inevitably landlords who are still paying the tax, it will raise money for the government to put into more housing solutions or other problems the government may have. The expansion also sets a precedent for other communities that are still not included. If landlords can see that their community might be next, they will preemptively move renters in to avoid the tax completely.
There is now a three day grace period, called “the homebuyer recession period,” in which homebuyers can make sure that they are making the right decision financially and for their families. The grace period does not only benefit the buyer: “[the homebuyer protection period] includes a rescission or cancellation fee of 0.25% of the purchase price, or $250 for every $100,000, for those who cancel their contract to help ensure that all parties are taking the transaction seriously” (Government of BC). This means that the seller does not lose out on money from other potential buyers that they could have attracted within the protection period.
As anyone who has ventured into the real estate market knows, buying a house is very difficult and sometimes scary. Houses are incredibly expensive, and the worst part is that they are expensive for life. This fear can be discouraging to prospective buyers. The three day grace period reduces stress on homebuyers, which in turn encourages them to buy real estate. British Columbia is the first province in Canada to implement something like this. Improving the rights and privileges of homebuyers creates a safer market that can be easier to understand for the layman.
Crime within the real estate market is a large contributor to the crisis as a whole. Money launderers and gangs are buying up real estate for numerous reasons, whether that be as headquarters or for tax evasion. The BC government is cracking down on these criminals. Gangs are occupying residencies and using them for illegal activities while people desperate for housing are left on the street. The BC government is collaborating with the Canadian federal government to weed out these criminals. To do so, the provincial government issues ‘unexplained orders’ when they observe erroneous or fraudulent behaviour on tax forms. The ‘unexplained order’ forces the taxpayer in question to explain how they acquired their assets, thus identifying anyone using or acquiring property illegally.
The landowner transparency registry act is a law that BC is enforcing to further clarify who owns what land. Targeted at people who own more than one primary residency, the land owner registry exposes people whose name does not appear when a prospective buyer/renter looks up the property. BC is hoping to end hidden ownership. When a landowner’s name does not come up on a search of a piece of land, it makes it much easier for that person to commit tax fraud and use that property as a money laundering hub.
Points five and six (cracking down on criminals and the landowner transparency act) are fairly similar, or at least have a similar idea. They both aim to hit criminals who are taking advantage of the housing market. Lots of criminals, especially those involved in gangs, mafias, or mobs, have a tendency to know how to find loopholes in tax returns. If the government fortifies their tax processes, it will make it much more difficult for those gangs, mafias or mobs to game the system using loopholes. If there are less criminals abusing the real estate market, it will grant other people space to live in their own home.
Another large problem with housing in BC is that there are a lot of foreign buyers. People from other countries/provinces are purchasing up real estate at very fast rates. Not only does this take away housing from actual residents in BC, but it also drives the prices up. BC is planning on fighting this by increasing the foreign buyers tax. If you are in a foreign country and are planning on purchasing property in British Columbia, an additional 20% (Government of BC) is added to the price of the property that goes straight to the government. The additional revenue can then be used to create more housing crisis solutions or, again, any other issues the government may have.
Theoretically, this will discourage foreign buyers by making it more expensive to buy real estate in BC. It will prioritise people who are primary residents of BC instead of people who are buying homes to make money off of or to vacation in. Most of the foreign buyers come from places like The United States and some parts of Asia. By reducing the amount of foreign buyers, the availability of housing will increase, and the prices will decrease. The BC provincial government has made a very clever move. It is a matter of supply and demand.
Being led by a businessman, the Ontario government is only tackling the issue of supply and demand. Doug Ford has pledged to build 1.5 million homes by the year 2031. Since his election in 2018, he has built 19% of his goal (285,000 homes). Unfortunately, there is only so much of Ontario for him to build on, (especially in places like the Greater Toronto Area). His ideas of places to build have been somewhat shady, as he was trying to build land on the Green belt, which is a huge plot of protected land. According to the official Ontario government’s website, this seems to be Doug Ford’s only solution. He has no other plan to increase/expand/reduce taxes, no plan to reduce foreign buyers, nothing. The Ontario provincial government’s only plan is to build more homes.
Building more homes is a very short term fix. While he is correct in thinking that more houses will dilute the market and make things cheaper, it will only allow foreign buyers or criminals to buy more houses at cheaper costs, then the cycle will start all over again. The provincial government of Ontario is not addressing the root of the issue: the rich and powerful are buying up land and jacking up prices that the middle class and poorer people simply cannot afford. The advantage BC has over Ontario’s strategies is that it addresses more than just a lack of housing, it also addresses the actual origin of the crisis.
Quebec’s solutions still in the works. Each political party in the province has their own spin on the issue, but they all eventually devolve into the same thing (reducing or increasing taxes). The Coalition Avenir Quebec (CAQ) has introduced Bill 31, which “would limit the use of lease transfers, new rules for landlords on rent rates, amendments to eviction rules and other housing issues” (Rowe). The liberal party, which is the main opposition, wants to introduce a tax exemption for building materials. If building materials are cheap, then houses will also be cheaper. The Quebec Solidaire wants to give tax credits to citizens who live in multigenerational homes.
Of the three, Bill 31 is the best option. Giving tax exemptions/credits will only work until the provincial government inevitably runs out of money, and has to reintroduce the taxes again. In creating a more balanced relationship between landlords and tenants, a more reasonable middle ground can be reached. But, the root of the issue is once again glossed over. Foreign buyers, criminals, interest rates, everything is seemingly ignored. Just like Ontario, Quebec is thinking in the short term instead of the long. Nothing effective will be accomplished unless topics are observed in a broader scope.
Nova Scotia’s plan is more diverse than Ontario’s and Quebec’s. The provincial government has a three point plan in that they will “increase housing supply, grow and sustain affordable housing, and provide programs that people need.” The Nova Scotian government pledges to build 40,000 houses by 2028. A much smaller amount than Ontario, but its lower size makes sense due to Nova Scotia’s population compared to Ontario’s (1,070,643 and 13.6 million respectively). In order to keep the housing they are building, the government plans to repair and upgrade houses that already exist. This is to ensure that the houses stay safe and usable for long periods of time. Their programs to help under-priviledged citizens (particularly that of Indigenous and African descent) will provide funding for communities in need, and will also move the homeless into safe homes.
The three point plan is admirable. Building more houses, making more sustainable housing and creating programs is far more diverse than Ontario and Quebec’s— but is it diverse enough? Building more houses paired with keeping them affordable is a step in the right direction, but runs into the same problem that Ontario will have In which the increase in houses is a temporary fix. Another issue is that if they upgrade the houses, it might take away from their affordability, and once again we are at square one. The programs are a good start. They address a root problem, being that underprivileged communities do not have the same access to housing/housing programs. Nova Scotia’s plan is a decent middleground between British Columbia’s and Quebec’s. It provides attainable solutions that quasi-think in the long term, and addresses the origins of the housing crisis.
The housing crisis is a major problem that the BC provincial government is faced with solving. It is certainly leading the fight against the unaffordable, as their six point plan not only addresses the lack of housing, but also makes steps in tackling the reasons as to why housing is so unaffordable. Compared to the plans from other provinces like Ontario, Quebec, and Nova Scotia, BC’s is the most promising. The absence of long-term thinking from the other provinces (particularly Ontario and Quebec) will only cause even more problems in the future that they will once again have to scramble to solve. BC’s attack of the roots of the housing crisis will only reap further rewards.