B.C. announces new affordable units but middle-class still feeling housing squeeze

Through a new partnership with municipalities and Metro Vancouver, the province plans to build an additional 2,000 affordable rental homes in the next decade.

The program is called Homes For People and the first phase will see approximately 660 units across five sites in Vancouver, Burnaby, Coquitlam and Pitt Meadows.

According to B.C. Housing Minister Ravi Kahlon, the province’s initial investment in the program will be $158 million over the next three years.

"There is much more work to do but we're starting to see progress on increasing the supply of affordable and supportive homes for people across British Columbia,” Kahlon said.

Making the announcement in Port Coquitlam Wednesday, Kahlon was joined by municipal politicians and officials from Metro Vancouver and BC Housing.

Kahlon said the rental prices for the new buildings would follow a similar formula to Salal Landing, the complex under construction where the announcement was made.

When complete in 2024, that building will be comprised of suites ranging in size from studios up to three-bedrooms with residents paying 30 per cent of their pre-tax household income towards rent.

Only individuals and families making less than $115,000 per year will qualify to apply for the units.

"Sixty-three families are going to be able to get affordable housing right here,” Kahlon said as he gestured towards the construction site.

According to new data from rentals.ca two-bedroom units in Vancouver are going for an average of $3,653 in April and landlords are listing three-bedroom units for an average of $4,200 per month.

The latest census data shows the median pre-tax household income for Metro Vancouver is $90,000.

A family making that much money in the market for a three-bedroom home right now can expect to pay 56 per cent of their pre-tax income on rent each month.

“It’s not sustainable. When you're talking about the people who are making a livable wage, contributing to the economy,” said Rentals.ca analyst Paul Danison. “These people are struggling to pay their rent and there's not something going on for them."

CTV News asked Kahlon what can be done to help those that make too much money to qualify for affordable housing but not enough to pay market rates in the Lower Mainland.

"Well, a $400 rent rebate is going to help a lot of families making less than $80,000 a year,” he said. “But we know we are short of supply of rental housing."

The BC NDP promised that $400 renter’s rebate before the 2017 election and again during the 2020 campaign before finally including it in this year’s budget.

With a vacancy rate under one percent in Vancouver, a shortage of supply is exactly what Danison points to as the primary force driving rapidly rising rents.

"Rents are going to continue to go up until governments decide to do something very creative with supply,” he said.