Are For-Profit Developers the Problem?
The vacancy rate is up, rents are coming down and the temptation is to forget about housing. But there is no short term fix in housing – we must plan for 20 years from now.
The cost of housing is often discussed as if there is one cause. In reality, the price you pay is the result of many factors: the age of the unit, interest rates, the cost of new construction, concentration of ownership/collusion, tax rates, interest rates, the type of ownership, land use policies, building code requirements, supply, demand, construction costs, investor demand and local market conditions. The interaction between these factors changes constantly. It’s complicated.
Developers run businesses and businesses must cover their costs, or nothing gets done. Right now the costs are higher than rents can support, so if we want more housing, we need to subsidize it.
Here are some ideas that will maximize our public dollars:
Do not support inclusionary zoning. That means renters/buyer are subsidizing affordable units.
Streamline permitting and planning for buildings under 6 stories.
Support small landlords and people who want to be one. This helps more people buy homes and increases rental stock.
Fight AI rent setting systems.
Fight for legislation to stop rent increases between tenants.
Favour non-profit, co-op, and co-housing owners when giving out construction subsidies for multi-unit projects.
Use TCHC to experiment with Co-housing
Let’s think long term and be creative.
More Reading:www150.statcan.gc.ca/n1/pub/46-28-0001/2026001/article/00003-eng.pdf