TYEE LIST #28: Our big housing problem? Actually a century-long crisis, if you look at the archives.
Real Estate promotions photograph shot near Granville and Georgia, circa 1886. Image courtesy of the Vancouver Archives (LGN 454).
On Sept. 30, after months of research, the Mayor's Task Force on Housing Affordability released its final report, outlining the challenges facing renters and owners in Metro Vancouver's housing market.
"We know that many people across a wide range of incomes face affordability challenges in our city," it states, "from those with little income and no housing to those with a higher income but who struggle to find affordable, suitable and adequate housing... How Vancouverites decide to address these challenges is fundamental to the future of our city. Should we simply let the market decide what kind of city we want and who gets to live here? Or should we take the actions needed to increase the diversity of affordable housing options, and maintain the vibrancy, diversity and economic competitiveness of our city?
"We believe that this report provides a blueprint for both short and long-term policy directions to significantly increase affordable housing options in Vancouver, and encourage City Council to embrace the recommendations and take action on the most pressing policy issue in Vancouver today -- the lack of affordable housing."
The report goes on to cite high costs and substandard facilities as particular problems -- echoing media rumblings about a city-wide "housing crisis" -- and concludes that housing affordability is perhaps the most significant issue affecting Vancouverites at the dawn of this century. As it turns out, a look through the city archives reveals that it was also the most significant issue affecting Vancouverites at the dawn of the LAST century. And quite often ever since then. Hm.
"There are more speculators about New Westminster and Victoria than there were in Winnipeg during the boom and they are a much sharper lot. Nearly every person is more or less interested and you will have to be on your guard against all of them."
-- William Cornelius Van Horne, in a letter to Major A.B. Rogers of the C.P.R, 1884.
"[The government] believes that all people have the right to expect decent living accommodation. It believes that appropriate steps must be taken to assure an adequate supply of housing... not just to meet present needs, but to meet the needs of the future as well. A great deal of time has been spent, by both public and private authorities, on analysing the housing problem. We must now concentrate our efforts on finding the solution."
-- "Housing: Everyone's Responsibility." Dept. of Municipal Affairs. Victoria, 1969.
"Vancouver's housing problems focus on the issue of cost of housing services. Inadequate income, or alternatively, the high cost of shelter, is seen to be the major factor constraining choices... An estimated 23% of the City's families pay in excess of 30% of their income for shelter."
-- "Understanding Vancouver's Housing," Planning Dept. City of Vancouver, 1979.
"What sort of economy and society will there be if only the very rich can afford to live here? Current high housing prices have definite economic growth and job creation implications for the province. If high-priced executives can't afford to move here, how can lesser-paid people afford to stay?"
-- The Vancouver Province, 1981.
"Land prices are high, it is said, higher than anything would warrant. 'Why, the workingmen cannot afford to pay at the rate demanded for these tiny outside lots,' asserted one man recently. The same thing was said here 20 years ago, answer the pioneers; others of us know that it was repeated 10 years ago and five years ago, and our children and our children's children will hear the same tale of woe decades hence."
-- B.C. Magazine, 1911.
"Housing costs are high, but we can't afford to throw up our hands and say we can't afford to build many more houses until costs come down again. In a city growing as fast as ours this would be the counsel of stupidity and despair. We must have more homes and we must have them at prices people can afford to pay."
-- The Vancouver Sun, 1958.
"Vancouver is facing a housing crisis. Real Estate agents have difficulty in finding apartments and houses to accommodate hundreds of people seeking quarters every day -- soldiers' families, war workers, and people who are swelling the city's population. Then there is also the slum question."
-- Vancouver News-Herald, 1941.
"Apart from overcrowding, a very unfortunate condition is being perpetuated in connection with dilapidated and, in some cases, condemned dwellings. Under ordinary circumstances, these buildings would stand vacant, or be demolished, but the great lack of suitable accommodation has forced people to occupy these premises to the detriment of their health and wellbeing. The rentals obtained are small and, therefore, the landlords will carry out no repairs, nor make any improvements; thus, damp and cold add their toll to the misery of the occupants."
-- Interim Report of the Special Housing Committee, 1937.
"The inability of younger households to afford 'family type' accommodation in the City has been one of the spin-offs of rising house prices... Households in the lowest income category, 18% of all households, have about 4% of the total income, while those in the highest category, 23% of all households, have 47% of the total income. The obvious implication is that much of the purchasing power in the City, including the ability to pay for housing, is concentrated in a relatively small proportion of households."
-- "Understanding Vancouver's Housing," Planning Dept. City of Vancouver, 1979.
"Look no further than the Trafalgar area, perhaps the most striking example of investor decay in the city. It's no longer a community, it's a commodity. A pocket of land bought and tilled by speculators... It didn't used to be this way."
-- Vancouver Courier, 2012.
"The association suggests that land speculators, in their greed for quick capital gains and profits in bidding for land offered for tender by Cities and Municipalities, have raised the cost of serviced lots beyond all reason, far beyond the limits of scarcity."
-- "A Brief On Housing." Vancouver Civic Action Committee. Jan, 1967.
"I look on it (such activity) as I look on land speculation where nothing is done but turning property over for profit. They add nothing to the city. I despise it. […] We have to retain occupier ownership in the city or our neighbourhoods are going to go down the drain."
-- Ald. Mike Harcourt, quoted in The Vancouver Sun, 1974.
"Given the negative impacts that expensive housing has on our city -- whether it is forcing people into longer commutes, living in substandard housing, or limiting economic opportunity -- we urge City Council to be bold and embrace the recommendations we have laid out, with a determination to see them through. The health, prosperity, and future success of our city depends on it."
-- Report of the Mayor's Task Force on Affordable Housing, 2012. ![[Tyee]](http://thetyee.cachefly.net/ui/img/ico_fishie.png)
Jesse Donaldson is a journalist, photographer, playwright, and one of the founding editors of The Dependent Magazine. His first book, THIS DAY IN VANCOUVER, comes out in 2013 from Anvil Press.
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wintermutt
24 weeks ago
be careful what you wish for
Mayor and Council would have us believe that housing affordability is simply a matter of supply and demand. Their response, as per the Mayor's Task Force, is to simply increase density, although there is no evidence that increased density will improve affordability - see for example Hong Kong as a paradigm of high density and high cost.
Unfortunately the Task Force's blanket recommendations to up-zone vast areas of the city run rough shod over the local community planning process. Vision's backers in the development industry love the plan, while the coalition of Resident Associations across the city universally reject it.
Sweeping changes are coming to your neighbourhood, disguised as a response to affordability, and a funding mechanism for much-needed transit.
Fiat lux
24 weeks ago
There was no housing crisis
There was no housing crisis in Vancouver when we moved there in 1955. My first job paid me $1.35/hr and lasted 5 months. The I went into an apprenticeship for .75 cents/hr.my wife was making about the same in various jobs.
Our rent for 2 nice rooms and shared bathroom was $35./mo. Our grocery bill under $20.wk.
There were ads in the Sun for small bungalows in Burnaby for $1,200. A $5,000. house was really something.
We bought our first in 1966 for $500. down and $45./mo. Nobody complained about housing shortages or unaffordability.
The crisis started around 1980 with the huge influx of Hong Kong money into the Vancouver area, here in the Interior around 1990, with the influx of European, mainly German money that increased land prices up to 1.000%. and higher.
We bought our 120 acres in 1975 for $30,000. Since 1990 it would be around $400,000.
So, if you want to blame anybody for unaffordable housing in the cities and on the lands, blame "wealth creating foreign investment" and bank deregulation causing huge inflation.
Ed Deak.
vreaa
24 weeks ago
Century Long Crisis or Boom 'n Bust Cycles?
Many thanks for this article, Jesse. Anybody following the Vancouver housing predicament will find it very interesting. We'll definitely reference it at VREAA.
By the way: In your reading related to this, did you happen to see any early mention of the "running out of land" idea? It'd be fascinating to know when that was first expressed.
Also: Did you come across quotes from down-cycles, when housing/land ownership was valued far less? In the thirties, houses in Vancouver could be purchased for the equivalent of three years rent. (That figure gets distorted in the other direction during manias.. currently rent:price ratios on some properties make the purchase price the equivalent of 50 years' rent!)
Our own thesis is that Vancouver is very clearly currently locked in the jaws of a speculative mania in housing, and that, when the mania collapses (it likely peaked in 2011), prices will fall by very substantial amounts.
This will shake things up, and ownership will become more affordable, again. Rents will, perhaps paradoxically, also come under downward pressure, for various reasons.
Vancouver housing will never be cheap, there will always be a mild-weather, beautiful-vista premium, but the current mania has taken prices to more than twice those supported by economic fundamentals, even when that premium is accounted for.
Until prices reconcile with underlying fundamentals like rents and local incomes, affordability talk and action will be the equivalent of rearranging the proverbial deck-chairs on the Titanic.
A number of local bloggers have been bearish the Vanc RE market for years, for good reason.
At VREAA (the Vancouver RE Anecdote Archive) we collect personal stories regarding the impact of the Boom (and the unfortunate, inevitable, coming Bust).
http://vreaa.wordpress.com
EddieMachete
24 weeks ago
Density is not the answer, it should be quality of life
I 100% agree with wintermutt. Increasing density is not a way to decrease prices, specially when demand is variable. If all the demand was internal it could work. International investment plays a role here and as long as we keep promoting Vancouver as the Swiss bank of real state to foreign investors, density will fix nothing. On the other hand, I grew up in Mexico City and Guadalajara, two cities which increased density rapidly. This comes at a high price. Yo need to provide services, like hospitals, schools and roads, to all the newcomers. Quick population increase also leads to the isolation of newer groups in less desirable areas leading to social issues and unfortunately insecurity. Finally, do you think that living in a shoe box, for as cheap as it can be, classified as quality of life? Is that what we want for the Vancouverites of tomorrow, just because in other parts of the world that already happened?
The approach should be how can we improve the quality of life of the already existing population in the area, not how to replace it.
snert
24 weeks ago
EddieMachete
Yup, you would think that along with increased density there might be some consideration to improved quality of life within the actual residences themselves. Alas, the new units are smallish and have much smaller balconies than one would expect if quality of life were really a concern.