The housing crisis in Metro Vancouver is deepening to the point where the B.C. government is likely doing a re-think of its strategy in dealing with it.
Last week, the government released data covering more than 10,000 house sales that occurred over a 19-day period last month, and the reaction from many was largely one of derision and scorn. Critics claimed it minimized the amount of foreign money flowing into the grossly overheated housing market.
But while the data itself is likely not enough to draw too many conclusions, there were a couple of dollar amounts associated with it that should be of concern.
Those housing sales involved a whopping $7.6 billion, while the foreign money component of those sales was almost $400 million, with almost all of it coming from those who identified themselves as Chinese nationals. That’s a lot of money to change hands in just 19 days, and that’s a lot of foreign money coming in as well, even if on a percentage basis it was only five per cent of all sales in Metro Vancouver.
The government will continue to collect the data and Finance Minister Mike de Jong hopes to release more of it on a monthly basis. But I suspect the public reaction won’t change much when he does.
Adding to the crisis are the rapidly worsening problems faced by renters. The dream of buying a home in much of Metro Vancouver vanished for most people some time ago, but now actually finding rental accommodation has become increasingly difficult (if not impossible in some areas).
The rental side of the housing crisis has implications for more people than the sales side. Millennials (now the largest single demographic group in the population) are being squeezed particularly hard, as they likely don’t have the purchasing power of older renters.
As Vancouver itself becomes unaffordable for an increasingly large number of people, and as that unaffordability spreads throughout the region, the B.C. Liberal government has to be concerned as the spring election draws ever closer.
Elections are won by winning the most ridings, and there are anywhere from seven to 10 ridings currently held by the B.C. Liberals that could be in jeopardy if anger over the housing situation isn’t placated.
Some industry watchers suggest the housing market is showing signs of slowing down ever so slightly. But even a mere slow down won’t make homes any more affordable, and it may still leave many, many renters out in the cold. The housing crisis isn’t going away. We’ll see if the government has the ability to truly come to grips with it.
Keith Baldrey is chief political reporter for Global B.C.
