Can we build enough housing for everyone?
The media keeps reiterating there is a housing crisis and the only way out is to build more houses. Every region of our country has experienced growth in development and we still dont have enough housing.
Maybe the issue is not enough houses but are there other solutions?.
One solution is what type of housing are we building?
I have lived in the Greater Vancouver area for over 30 years and have seen tremendous growth in the development of housing throughout the area. The majority of the housing built in the Vancouver area has been with townhouses and condo towers development due to the restriction in the land space available. These properties are smaller spaces than single family homes compared to other areas of the country where the development is suburban areas with single family homes. The argument I hear is we have the land so why should we not build single family homes?. Just because the land is there should we use it all for housing.
All areas are losing valuable land for growing food to develop housing.
The housing issue has many factors and developing only one or two styles of properties in an area limits people’s choice, whenever consumer choice is limited costs are increased. The development of suburban areas where people need a vehicle to get to work, school or shopping also increases the cost of living. All regions need to have a better mix of single family homes, duplexes, townhouses, condos and purpose built rental apartments to facilitate the needs of all the people needed to make an economy work effectively.
People grow up in an area with their families then want to move out of the home to live on their own and start their own life. In many areas of the country this means they need to move far away as housing in that area is only one type mostly family homes and they need a smaller property to start out in. When children move out of the family home they should have an option to rent or buy a product that is in close proximity to where they lived with their family. In addition, on the other end of life if elderly parents want to move closer to family it would be helpfull to have different types of housing in all areas. In both of these situations having family closer can help families support each other when needed.
Another question asked in recent years is, are we using the current housing correctly?.
Governments have changed laws to add empty homes taxes, speculation taxes and limiting short term rentals to ensure housing is used for people to live in and not for other uses, which I think are all good things. There are a few areas the government could help with the cost of housing.
One area I would like to see the government consider changing is people who are unable to afford their homes and want to continue living there. I am talking specifically about reverse or CHIP mortgages. The basic concept of these programs are for people over 55 a financial institution will loan you money based on the equity in your home to allow you to stay in the home you have lived in for a long time.
The reality of these programs are, “financial institutions are lending people money to stay in a home they are unable to afford”. If you are unable to afford the home, should you borrow money to live there? Part of the problem with this program is related to the first issue here which is the development of various types of housing. When areas are limited by the types of housing owners residents are forced to move from an area they like and are familiar with living in. They choose to borrow funds to stay in a house that is too large for them or build a basement suite to rent to help afford the property. Both of these situations lead to potential financial issues for the homeowner and housing potentially not be used to its full potential. If these owner’s moved, a family who needs that much space would use the full property and the homeowner would have a smaller home in the same area with no debt and not being forced to be a landlord. In many areas there are limited options for homes and a senior or elderly person who wants to stay in the same area they have lived in for many years struggle to find suitable places to live. If the seniors could sell their property and move five minutes down the road to a smaller place and keep the family, friends and support network around them as they had before.
Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
