How the federal budget could impact housing affordability in B.C.
From introducing new measures to stop foreign buyers to helping speed up approvals for new homes, Ottawa hopes to make the dream of ownership a reality – but will it work?
Paula Howley just got served notice to leave her rental home. At a time when vacancies are extremely low and costs are sky high, she's not sure what's next.
"I already work two jobs, my kid works, and there's not much time to enjoy life. I'm going to be looking for a third job now," Howley told CTV News.
Affordability for those buying and renting homes in B.C. has long been an issue. Now, with inflation increasing the cost of other goods, the federal government is under pressure to act.
In the budget tabled Thursday, the Liberal government plans to spend more than $10 billion to help with housing supply and affordability. Those who buy and sell a home within 12 months will pay higher taxes as a way to curb speculation. There's $4 billion to help cities and towns approve new housing faster along with another $1.5 billion to create more affordable homes.
Paul Kershaw, UBC Professor and the affordable housing advocate behind Generation Squeeze, said more housing supply starts at the municipal level, where officials may be lobbied by residents worried about new developments.
"One of the things i'm especially excited about is the $4 billion accelerator fund, which is designed to incentivize cities to resist NIMBYism in neighborhoods where there's low density, because we know that's where we need to add more rental and more ‘missing middle’ housing," he told CTV News from Ottawa.
With more and more people coming to B.C., there's increasing pressure for housing. New immigrants are needed, Kershaw pointed out, to ensure there are enough taxpayers to support an aging population.
"The housing system then generates higher prices, which erodes affordability for younger people who are working to sustain that aging population with their taxes,” he added. “But it also produces those interesting wealth windfalls for those who've been in the housing market longer, namely the aging population."
He believes until that key issue is addressed - how to stall prices while those who have reaped the benefits of a runaway market pay higher taxes - the housing affordability puzzle will remain unsolved.
Ottawa is also bringing in a two-year ban on foreign buyers in the real estate market. B.C. has rejected similar measures in the past.
Housing Minister David Eby said foreign buyers currently make up less than two per cent of the market.
"British Columbians shouldn't expect a dramatic impact given the measures we've taken in the past - the speculation and vacancy tax and the foreign buyers tax," he told reporters in Victoria.
There's also support for those saving to purchase their first home. For Howley, it's a moot point.
"Unless I get an inheritance of some sort, which I’m not expecting, I don't think owning a home is in my future,” she said.
There may be some relief for Howley and other renters. The NDP says it negotiated $475 million to be set aside this year to provide one-time payments of $500 for renters. Although there aren't details yet on who qualifies, the party says about a million people will be helped.
CTVNews.ca Top Stories
Inflation is down, wages are up. Why are Canadians still frustrated with the economy?
The federal finance minister has been taking every opportunity to remind frustrated Canadians that after a bumpy pandemic recovery, the nation's economy is actually doing a lot better.
'It looks quite real': Two Ontarians lose money to fake phone scam
About 85 per cent of Canadians have a smartphone and once you have one they’re hard to live without. The latest smartphones can cost as much as $2,000, so if you’re trying to save money, make sure you don’t get caught in a fake smartphone scam.
America reaches Election Day and a stark choice between Trump and Harris
A presidential campaign marked by upheaval and rancor approached its finale on Election Day as Americans decided whether to send Donald Trump back to the White House or elevate Kamala Harris to the Oval Office.
New homeowners find skeleton in attic 15 years after previous occupant disappeared
Homeowners in France have discovered a skeleton in the attic of an outbuilding while undertaking renovation work.
B.C. ports shuttered as lockout takes hold in latest labour dispute
One of Canada's most vital trade arteries is cut off as employers at most of British Columbia's ports lock out their workers in a dispute involving about 700 unionized foremen.
Months after VRBO booking, Taylor Swift fan told home 'not available' during Vancouver concert
A frustrated Taylor Swift fan is speaking out after being pushed from a short-term rental she booked for the upcoming Vancouver leg of the superstar’s Eras Tour.
Dutch police arrest a suspect in a botched art heist of Andy Warhol screenprints
Police arrested a 23-year-old man Tuesday on suspicion of involvement in a botched art heist at a gallery in the southern Netherlands targeting four valuable Andy Warhol screenprints.
Trudeau and Harris? Poilievre and Trump? Here's who Canadians think would work best with: survey
As Americans prepare to elect their next president on Tuesday, new data from the Angus Reid Institute suggests Canadians hold differing views as to which federal party leaders would be best suited to deal with either Donald Trump or Kamala Harris.
Australian foreign minister raises allegations with Indian counterpart of targeting Sikhs in Canada
Australia's foreign minister said Tuesday she raised allegations with her Indian counterpart that India has targeted Sikh activists in Canada.