Home Cost Crunch: UBC's Role?
As real estate inflation tears Vancouver's social fabric, what's a university to do?
UBC: Fueling, or solving, the problem?
This is a plea for all Canadians to stop and think about how we define "progress" in our cities and towns.
We are bombarded daily by the message that social well-being is best measured by economic growth and indicators such as housing starts. It is as if our only gauge of progress is more -- more housing at higher prices.
And yet, we continue to create housing that fewer people can afford. The trend should be alarming for all Canadians.
As a professor engaged in research and teaching on health inequities, I believe the University of British Columbia and its community provides a compelling case to study. The UBC Mission & Vision states that we will "promote the values of a civil and sustainable society", and acknowledge our obligations as citizens to "secure a sustainable and equitable future for all." The current situation in Vancouver suggests that the UBC community should greatly strengthen these commitments, particularly when it comes to engaging the poorest and most vulnerable.
Unreal estate
Canada Mortgage & Housing Corporation places the average resale price in 2007 for a Vancouver home at $464,500, after 10 straight years of price escalation.
Around UBC, a million dollars has become a low price for a home. The RealtyLink website on January 25th, 2008 in the UBC area showed 4 houses for sale at minimum cost of $929,000 and a maximum of $7.68 million. For 13 available townhouses, the minimum was $458,000 and the maximum was $2.38 million. The 57 listed apartments had a minimum price of $348,000 and a maximum of $1.87 million. For a typical mortgage (7 per cent interest, 5 per cent down, 5 year term, 25 year amortization), the minimum household income to purchase the average house ($3.9 million) was $1.1 million with monthly payments of $27,000. For the least expensive apartment, the minimum household income was just under $100,000, with monthly payments of $2,700. This is in a neighborhood where much of the land is leased, not owned.
In 2007, public data showed that UBC had roughly 11,748 employees. There were 12 employee groups, including union members, faculty and administrators, and some 43,000 students.
At the above prices (with two incomes per household), none of the almost 12,000 employees had a sufficient household income to purchase the average listed house ($3.9 million).
Only two per cent could qualify to buy the average townhouse ($1.2 million). Sadly, only 11 per cent could buy the average apartment ($724,000).
Finally, UBC had just over 5,000 people in six unionized groups. None of them could afford to buy any of the 74 properties above.
Slamming the gates
In sum, only 3.5 per cent of the almost 12,000 employees in Canada's third-largest university could afford to purchase property in the "neighborhood." Appropriate/affordable housing is even more problematic for the 43,000 UBC students who are generally younger and less affluent.
Magnify this problem across Canada where full-time post-secondary enrolment is expected to grow to 1.3 million in 2013.
Like many other universities, UBC can be very proud of several recent initiatives such as Community Service-Learning and the Community Health Initiative by University Students. To its credit, UBC has also built small amounts of non-market and rental housing. But as some of the foremost communities in Canadian society, our universities should be champions for change. They should be leading the charge for affordable housing for their staff and students, and for our most vulnerable citizens.
Given the obvious need and UBC's apparent resources, where is the housing for single parents, immigrants/refugees, the working poor, the homeless and low-income students in the new UBC community now taking form on and around campus?
Big long term costs
Our recent work (led by colleagues from SFU) shows that the cost of providing adequate housing and support to the absolute homeless in B.C. is $179 million. Provisions for adequate housing in the new UBC community (and elsewhere) would reduce costs for health care, corrections, and emergency shelters. There would be a net cost avoidance of $33 million per year to the province of B.C.
We in the richest neighborhoods across Canada should be doing the most, not the least in addressing inequities and improving the 'health' of our region. Why are our poorest citizens and increasing numbers of the middle class being priced out of home ownership in our towns and cities? Housing (like health services) is a "social" good that is too important to leave to the free market in Canada or elsewhere. Human well-being is not a commodity. Canadians must move toward a more sustainable model that adopts a "triple-bottom-line" mentality by giving equitable weight to our economic well-being, environmental preservation, and the promotion of social justice.
As a starting point, an immediate, cooperative and substantive investment in affordable and non-market housing for staff and students would go a long way toward meeting the vision statements of universities such as UBC. Second, we must lead and foster a comprehensive public conversation with all Canadians about the true determinants of health -- not just health care but housing, education, income, early child development, and social relations. At present, Canadian media give inordinate coverage to health care issues and largely ignore the 'non-medical' determinants of health. This coverage is at odds with our research which shows that Canadians see homelessness as an urgent social and health issue. They are eager and impatient to have their political, academic and community leaders address the health, social, legal and economic challenges associated with poverty in Canadian cities.
Walk the talk
Over the long term, universities across Canada could readily assume a place of greater regional and national leadership in "promoting the values of a civil and sustainable society." In part, this can be done by educating the next generation of decision leaders on the evidence regarding the real determinants of the health of this and future generations. Otherwise, we are all at risk of losing key opportunities and failing in our stated obligation to "secure a sustainable and equitable future for all."
The world is coming to Vancouver, and Canada, in 2010 and beyond. If we fail to change, the world will find communities that are increasingly unaffordable, inaccessible, and unfriendly.
If so, they surely won't see any real sign of "progress."
Related Tyee stories:
- Up to 15,500 Homeless: Report
Tally of BC homeless by health profs far higher than housing minister's. - Who's Been Densified, Who Hasn't
It's time for 'equal density.' Vancouver's Westside should absorb its share. - Seven Solutions to Homelessness
Each is working somewhere else, and will save money and lives here.



giraffe
21-04-2008
Endowment
Given the recent announcements from the provincial government concerning post-secondary transfer payments, you will not find institutions such as UBC and SFU subsidizing the provincial social welfare system with their only source of long term funding.
notamused
21-04-2008
UBC = Unwieldy Bloated Corporation
UBC is an enormous real estate development corporation, led by a bagman with ties to the wrong federal party, hampered by the free world's most unwieldy bureaucracy, whose faculty are hired and evaluated based on the amount of dough they bring to the table, and whose graduates are mere by-products of a high-stakes shell game. The probability that such a bloated and dysfunctional institution will effect positive change on housing affordability in Vancouver is only marginally higher than that of the Canucks winning the Cup in 2008.
Maurice Cardinal
22-04-2008
Sleeping with the enemy
Jim, here’s what I wrote in my book, Leverage Olympic Momentum, after hearing you speak in 2006 . . .
"One of the morning speakers at the IOCC event was Jim Frankish. I loved listening to this guy. He is well qualified and paints a brilliant 40,000-foot perspective. …
… I want Jim on my side, and so should everyone who lives in an Olympic region. But I’m going to put something on the table he might not yet fully appreciate in early 2006. Dr. Frankish works for and therefore has an allegiance to the University of British Columbia. This much ‘he’ knows. But as you know from earlier information in this book, Olympic organizations use universities to further their cause, and historically, universities often do it to the detriment of the community. Universities are often bought by Olympic organizations. When they are bought it means universities have an obligation first to the Olympic organization, then to their students, and then to the community, if there is anything left.
Also, in all Olympic regions, Sydney and Salt Lake City for example, Olympic organizations used university professors to lend credibility to stories published by local media. As also mentioned earlier, local media pay to become official Olympic sponsors and therefore also have a legal obligation as described in their agreement, to protect the Olympic organization, even if it is to the detriment of the community. Again, conflict of interest is prevalent.
When an Olympic organization pays a university $1 million+ to rent their facilities, staff and student body, there is an implied understanding they are partners, and that partners do not undermine each other.
I hope the IOCC [local Olympic watchdog] soon comes to realize they are sleeping with an elephant, and more importantly that the elephant is not working for the community. The only way to establish pecking order with an elephant, or a chicken or a dog is to let them know who is boss. You can talk to the elephant all you want, but beware – it’s not a big thinker. It operates through brute force. Intimidation is its modus operandi because it produces results quickly. And in the Olympic forum time is of the essence. Elephants don’t have to talk. They just do it and deal with the consequences later. That is if they are still around when the curtain comes down with a big tax thump after the Games leave town."
Here’s what I wrote about university students in Metro Vancouver
And a piece about the IOCC
And finally, the dynamics regarding 2010 and local students
rangergord
22-04-2008
long on the problem, no solution in sight
So what are the solutions? I see an unholy alliance between real estate agents and speculators, land developers, the municipalities, insurance companies and banks. Two income families enabled house prices to keep rising along with low interest rates and creative ARM's. It will only stop when buyers stop biting the hook and allow the market bubble to crash to a realistic level. In the process many will go bankrupt and loose everything because it was allowed to go on so long. All the signs point to a correction within the next two years. Maybe not until after the olympic hoopla has died down and reality of the bust behind the scenes sinks in. Just look across the border, watch and wait.
greengreen
22-04-2008
University = real estate?
A very basic question....since when is a University a real estate developer?
Another question...how come endowment lands have been used to build mansions for the rich? Is there any restrictions on such lands?
And another....who benefits from the horrendous profits from these real estate deals?
James3D
22-04-2008
UBC's Greedy Greenwashing
UBC is has been systematically destroying what's left of the beautiful endowment lands to build multi-million dollar condos. The mess at 16th Avenue and Westbrook Mall was until a few months ago a beautiful 90 year old forest. UBC involved members of the surrounding community in a futile exercise of "public input", only to disregard all environmentally innovative suggestions as "too expensive."
Members of UBC Properties Trust sneer at the public's environmental concerns. Al Poettcker, Joe Stott, Linda Moore, Nancy Knight (and the disgraced Dennis Pavlich) should all be held accountable for the environmental destruction they have knowingly caused. Now they have their sights set on the UBC Farm. When faced with concerns from the public who don't want to see this land also gobbled up for multi-million dollar condos, the latest word from UBC Properties Trust is they are considering "relocating the farm."
WTF?