Last November, I wrote a post (here) on the dilemma of the three-storey walk-up, the plain stucco boxes that proliferated in the apartment districts of Vancouver from 1945-55:
For the last three decades, these buildings have been a reserve of lower-middle-income affordable rental housing….
When the real-estate market was hot in the late 1980s, … low-rise apartments were being replaced by highrise condos with less units. Result: population density reduced, housing affordability lost, views compromised, tenants distressed, neighbours angry, politicians unhappy. Pretty much a lose-lose all the way around.
The Council responded by imposing a rate-of-change condition on vulnerable neighbourhoods like the West End, in addition to a rezoning that took away much of the incentive to redevelop. More positively, developers were redirected …
This combination took the pressure off, rents remained stable, evictions were almost unheard of, and, as they say, the dog didn’t bark…. (But) if there’s any significant loss in the affordability of the three-storey walkup, then, believe me, the pit-bull of politics will be unleashed.
So … who let the dogs out?
As regular PT reader Sungsu noted in a comment, a just-released report from City Hall tallies up some of the recent damage:
In Kerrisdale, an issued development permit allows 41 strata units to replace 67 rental housing units at 5951 Balsam (Bermuda Manor). The sale price for the new units is almost $900 per square foot. A second approved development application at 2260 West 39th allows the replacement of 23 rental housing units by 12 strata units … (The city has already had to issue demolition permits for 260 rental housing units this year alone.)
In the Sun today, Frances Bula sums up the recommendations from staff:
…. any demolition or conversion to strata would have to come to council for approval. While the door is left ajar for developers who come to the city with creative proposals to build replacement housing, it would be shut for anyone who simply wants to tear down old rental apartment buildings to replace them with strata-title condominiums.
Next Tuesday, Council will be asked to approve a recommendation to go to a public hearing – effectively freezing any further development applications.
I don’t think Council has much choice on this. As the report notes, the city no longer has large (or even many small) development sites to take the pressure off the existing rental stock. And another story in the Sun explains why that pressure is so excrutiating:
(Relator Bob) Rennie thinks prices may level off, but doesn’t see any dramatic drop.
It can’t keep going up as fast as it has been,” he says.
But we watch for what levels it off — interest rates, if we’re not working, or there’s an oversupply. You just watch those three things, and none of them seem to be visible on the horizon.”
The other factor, of course, is that a substantial amount of Vancouver real estate sells to people who don’t live here. Some are from Europe and Asia, some from the U.S., some from Alberta. Rennie estimates 15 to 20 percent of downtown condos are sold to non-residents. And he sees the 2010 Olympics as a $5 billion advertising campaign for Vancouver’s high quality of life, which may attract more international attention.
The thing that nobody likes to admit is that Vancouver at a certain level is looked at as a resort city,” says Rennie.
“Nobody likes to talk about it, but we are.”
I hesitate to use the cliche ‘perfect storm,’ but there are a lot of heavy breezes blowing – and any local politician who fails to respond could well be blown away.
The problem, of course, is that stopping change rarely achieves any solution. Some way has to be found for the aging housing stock to be replaced without sacrificing the lower-middle-income renters.
Over 50 per cent of Vancouver households, and over 80 per cent of younger households, are renters. They face a triple whammy: Rapidly rising condominium prices price low-income earners out of home ownership; redevelopment of rental buildings is eroding the housing stock; and income growth is not keeping up with increasing rents.
That’s a lot of voters. Read more »