British Columbia’s housing market hits record highs in sales and prices during 2021, while the resulting property transfer taxes helped bolster the province’s bottom line.
Home sales increased by 32.8 per cent in 2021 compared to the previous year, while the average price of a home in the province rose 18.7 per cent. Housing starts also jumped 25.6 per cent in 2021 to a record 47,607 units.
Those figures helped boost the B.C. economy and put money in provincial coffers, with property transfer taxes adding $2.1 billion in revenue last year and an anticipated $2.5 billion in the year ahead.
Detailing the 2022 provincial budget on Tuesday, B.C. finance minister Sheila Robinson outlined investments in a number of housing initiatives, including $633 million geared toward programs aimed at preventing homelessness, including supportive housing programs and rent supplements to help people afford adequate shelter.
“A new comprehensive approach is needed to shift from reactive to proactive solutions for homelessness,” Robinson said during her budget speech.
The budget also included $166 million devoted to a 10-year housing plan with a goal of building 114,000 affordable homes across the province, as well as $100 million to non-profit housing providers to expedite construction of mixed-income housing through the Community Housing Fund.
An additional $11 million in funding was earmarked to help fund the province’s Better Homes New Construction Program, which provides up to $15,000 in rebates for the construction of high-performance electric homes.
The Canadian Home Builders’ Association of British Columbia (CHBA BC) welcomed the news, while noting the Better Homes investment fell short of the previous year’s budget and renewed its call to expand the program.
“Housing is essential to achieving this government’s goals for an inclusive and sustainable economy,” said CHBA BC CEO Neil Moody in a release. “Budget 2022-2023 recognizes the importance of the residential construction industry, which has upheld the province’s economy during these challenging times.”
CHBA BC has continuously lobbied the province to streamline the development approval review process to help increase housing supply, and government officials could be taking decisive action this fall.
Earlier this week, B.C. housing minister David Eby said the provincial government is considering legislation and regulatory changes that would exclude local governments from making the final decision on housing permit approvals.
The move would be a welcome change for developers forced to endure an arduous approval process at the municipal level, with projects undergoing heavy scrutiny to ensure they align with community regulations.
“The bottom line is that municipalities are not approving enough housing for our population growth,” Eby said in a statement. “I think it’s quite possible that we’re going to need to be more prescriptive. One thing is clear is that the status quo is not acceptable.”
