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By Katlyn Eriksen

Sound Off

SOUND OFF: Does British Columbia’s housing shortage really exist?

Apr 13, 2022 | 2:27 PM

BRITISH COLUMBIA IS HOME TO MANY AFFORDABLE CITIES, including Nanaimo and Kamloops. But house prices are expected to rise by 8.5 per cent throughout 2022 which will make some of these locations tough to buy in. Experts argue that Canada’s housing shortage is contributing to this property price hike. So, is there really a housing shortage across BC or is something else pushing house prices up?

Lack of affordable housing

A recent Union of BC Municipalities (UBCM) report determined that BC is building and providing enough properties for its population. They highlighted how over a 5-year period, dwellings increased by 7.2 per cent while the population rose by 7.6 per cent The problem, however, is that the housing available doesn’t suit people’s needs or budgets. A lack of affordable housing is the biggest problem, according to Penticton Mayor John Vassilaki. The Union of BC Municipalities report backs this up and suggests that the local, provincial and federal governments work together to provide affordable housing that BC locals actually want. One criticism is that the UBCM report assumes that there are at least two people living in each new dwelling built in BC. This isn’t necessarily the case, though, as the number of people living alone in Canada has risen substantially over the past 35 years.

A sales slump

The B.C. Real Estate Association (BCREA) has predicted that property sales will drop by 17 per cent this year. They warn that a shortage of inventory will further inflate property prices. The BCREA states that while 2022 will be a slower year for house sales, things will ramp back up in 2023. There’s the potential for house prices to creep up by less than 3 per cent next year if this is the case. Property owners considering selling should therefore carefully price their home so they get the most cash possible now. Things such as comparing recently sold properties, how desirable a home’s location is, and the size of the property all play a role. Even the finish and overall style of a property can influence the asking price.

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High immigration rate

Despite the findings of the UBCM report, housing ministers have argued against it. They say that the report does not reflect the problems that locals are encountering with accessing housing. One reason for this could be the high number of people who moved to BC in 2021. Statistics Canada reports that almost 100,800 people set up home in BC last year. This was the highest population growth in 60 years. These individuals are crucial to BC’s economy as they’ll help to fill the labor shortage that has swept the province over the past two years, so giving them suitable housing must be a priority.

There’s no denying that there’s a housing crisis across British Columbia. But no one can agree exactly what is causing this problem. This evidence shows how multiple factors are playing a role and that the property shortage isn’t an issue that’s as simple as it seems.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or Pattison Media.