Stephen Colbert records an episode of his U.S. comedy show from Vancouver during the 2010 Olympics

Stephen Colbert records an episode of his U.S. comedy show from Vancouver during the 2010 Olympics

BC VIEWS: Housing ‘crisis’ decades in the making

Expo 86, and later the Vancouver Olympics, were designed to put B.C. and Vancouver on the world map

With a bit of grumbling behind the scenes, our 85 MLAs have trekked back to Victoria this week to deal with an emergency summer legislature sitting.

The stated purpose of this brief session is to comply with a demand from Vancouver city council for the ability to impose additional property tax on vacant residential properties.

Vancouver Mayor Gregor Robertson, a former NDP MLA who likes to direct provincial affairs when he isn’t issuing instructions to Ottawa on pipeline policy, should be careful what he wishes for. B.C. Finance Minister Mike de Jong was happy to drop this hot potato in his lap, and now Vancouver city hall can try to determine who’s vacationing for a few months and who’s holding an investment property while living somewhere else.

When NDP leader John Horgan began calling for a “speculation tax” of 1.5 per cent on “offshore” investments, de Jong cited a Vancouver survey that showed the number of vacant properties in the city was declining, even as prices were climbing rapidly.

Horgan argues that Metro Vancouver is in the grip of a housing “bubble” that must be caused by foreign money.

“If wages have been stagnant for a decade, which they have, where is the revenue coming from to inflate these prices?” Horgan said last week. “It’s coming from somewhere else. And that’s not sustainable over the long term.”

Another point likely to be made repeatedly this week is that the province stopped collecting citizenship and residency data on real estate purchases back in the late 1990s. De Jong changed that this spring and with great fanfare rolled out the first three weeks of sales data from June.

They showed that only three per cent of purchases of B.C. residential real estate were from foreign buyers, mostly from China. They were concentrated in Metro Vancouver, and accounted for about five per cent of the total value, which suggests they were for higher-end properties.

This was assailed from all sides. Not a big enough sample size, doesn’t prove anything, etc.

(De Jong abruptly announced on Monday that they were imposing a 15 per cent additional property transfer tax on foreign buyers. On Tuesday he released another few weeks of foreign buyer data.)

We have one of those situations I call coffee shop consensus. Everybody “knows” it’s Chinese money pouring into B.C., and that many homes are being left empty, even if the actual evidence doesn’t show that.

Seattle has a similar problem with real estate in choice locations, by the way. Down there, the coffee shop consensus seems to be that it’s those darn San Francisco and Silicon Valley grillionaires who are driving up prices beyond the reach of working folks.

Blaming foreigners is a great narrative. We saw the same thing with B.C. campgrounds. Utter nonsense, but it has “truthiness,” as U.S. comedian Stephen Colbert says. Truthiness comes from the gut, not the brain.

In a recent radio interview with CKNW’s combative talk show host John McComb, de Jong put forward another theory. He mentioned that the aim of hosting Expo 86 and the 2010 Winter Olympics was to put Vancouver on the global map, and it seems to have worked.

Whistler has worked as a world destination too, as galling as it may be to those who insist these were all costly failures.

The real estate boom has had ripple effects in Victoria and other urban centres, with bidding wars for choice homes.

And it’s beginning to reverse a long trend of depopulation from small communities and rural areas, as people are forced to look for something they can afford.

And it’s produced an urban building boom, including the rental market. There are worse problems to have.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca Twitter: @tomfletcherbc

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Il vecchios
Popular Penticton sandwich shop closed for COVID case

Il Vecchio Delicatessen is closed for the foreseeable future

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

Linda Sanky photo
Vehicle fire spreads to trees at Penticton beach spot

The fire is at Pyramid beach, off Highway 97 between Summerland and Penticton

Over 300 participants, aged nine to 99 contributed to this yarn bomb outside the Penticton Art Gallery, near the bridge going to the Japanese Gardens. (Penticton Art Gallery)
Penticton has been yarn bombed

Penticton Art Gallery is hoping to yarn bomb even more trees around town but needs your help

Oliver Fire Department. (Submitted photo)
More human caused fires in Oliver

Firefighters have been kept busy putting out several potentional wildfires

Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

(Black Press file photo).
Multiple stabbings at Vancouver Island bush party

Three youths hospitalized after an assault in Comox

A GoFundMe page has been launched for a Vernon man whose BX orchard property home off Pleasant Valley Road near Stickle Road was totally destroyed in a fire Saturday, April 17. (Brendan Shykora - Morning Star)
Fundraising campaign launched for Okanagan man who lost home to fire

A GoFundMe page has been started by family; Vernon man taken to hospital with injuries from fire

Selina Robinson is shown in Coquitlam, B.C., on Friday November 17, 2017. British Columbia’s finance minister says her professional training as a family therapist helped her develop the New Democrat government’s first budget during the COVID-19 pandemic, which she will table Tuesday. THE CANADIAN PRESS/Darryl Dyck
B.C. finance minister to table historic pandemic-challenged deficit budget

Budget aims to take care of people during pandemic while preparing for post-COVID-19 recovery, Robinson said

Lord Tweedsmuir’s Tremmel States-Jones jumps a player and the goal line to score a touchdown against the Kelowna Owls in 2019. The face of high school football, along with a majority of other high school sports, could significantly change if a new governance proposal is passed at the B.C. School Sports AGM May 1. (Malin Jordan)
Power struggle: New governance model proposed for B.C. high school sports

Most commissions are against the new model, but B.C. School Sports (BCSS) and its board is in favour

Armaan Dhaliwal hands a cheque for $500 to Shuswap Hospital Foundation president Angie Spencer as his proud grandparents Gordie and Nancy Dhaliwal watch on Friday, April 16. (Jim Elliot/Salmon Arm Observer)
Salmon Arm boy’s samosa sales benefit hospital foundation

Armaan Dhaliwal was able to give the Shuswap Hospital Foundation a $500 donation

Firefighters battled a burning home on farmland in the north end of Vernon Saturday, April 17, 2021. (Brendan Shykora - Morning Star)
UPDATE: Homeowner taken to hospital after Vernon home destroyed by fire

Firefighters engaged in a lengthy battle against the engulfed structure Saturday afternoon

Members of the Okanagan Screen Arts Society received a cheque for $1,500 Thursday, April 15, 2021. The funds are to help the society’s efforts as they prepare take over operation of the Vernon Towne Cinema at the end of July. (Brendan Shykora - Morning Star)
Okanagan dealership gives local cinema a lift

Vernon Watkin Motor Ford, in business for more than 100 years, donated to the theatre with nearly as long a history

Vernon Jubilee Hospital. (File photo)
COVID-19 outbreak declared over in surgical unit of Vernon hospital

The outbreak affected four staff, 10 patients and led to three deaths in just over two weeks

Most Read