A commentary by the former B.C. Liberal premier.
Canada’s housing problem is at a point of no return. Housing deficits grow each year by hundreds of thousands of units.
Our ability to meet the needs of our citizens is eroding, as is our ability to fulfil the promises of a better life we once were able to proudly make to future generations and those who join us from around the world.
More than 60% of new immigrants move to Montreal, Toronto, Calgary and Vancouver, the places where our gravest housing affordability problems exist.
Sadly, as the housing situation has worsened for Canadians, governments have consistently added costs upon costs. The more unaffordable housing has become for you, your families, your neighbours, your friends and your communities, the more all levels of government have profited. They aren’t making the changes they should, in large part, because they are addicted to the revenues derived from your pain.
All levels of government have a responsibility to dramatically change tack. Since there is a provincial election coming, let’s start there.
In British Columbia, we are in the worst housing affordability position that we have ever experienced. Every homeowner and renter, young and old, is paying the price.
Each housing unit built carries land costs, material costs, wage costs, financing costs, and government-imposed fees and taxes. Homebuyers and renters, not developers, ultimately pay all these costs.
If housing is the bedrock of our quality of life, and if affordable housing is, indeed, a top priority for our provincial political parties, then it is time for the province to take real action to decrease government-imposed housing costs and increase citizens’ ability to pay for housing.
Here are four steps the province could take right now to more affordable housing.
Step 1: Immediately remove all provincial sales tax from building materials for new residential development.
Step 2: Immediately remove the property transfer tax. That change would save $2.55 billion this year and $6.74 billion over the next three years.
Step 3: Prohibit all development cost charges levied by the provincial, local, and regional governments on residential development. Recognize that buyers and renters, not developers, ultimately pay these costs, which add tens of thousands of dollars of unnecessary expense on every housing unit for ordinary citizens.
Step 4: Significantly reduce people’s provincial income taxes. Lower income taxes mean larger pay cheques and greater ability for citizens to buy or rent homes.
These four steps are just a start.
Our political leaders need to understand that when British Columbians say they need more affordable housing, they are saying that we need housing that costs less! Government-imposed fees and taxes make all housing much more expensive that it needs to be.
It is time for bold decisions and bold action — not more talk, hand wringing, hollow promises and announcements. British Columbians require courageous leadership and a fresh approach to shake up our untenable status quo.
The 2024 provincial election is a time for all British Columbians to ask — who among the politicians is prepared to prioritize affordable housing and quality of life for citizens over government revenues?
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