ENM Responds to ‘Vacancy Control’ Proposal

(Newswire.net — December 17, 2018) Langley, BC —

As part of its mission to assess affordability issues in the housing market, the provincial government’s Rental Housing Task Force received many suggestions on its summer tour across B.C. But one of the most concerning came from Vancouver COPE councilor Jean Swanson. Swanson believes vacancy control, or tying rental units themselves to restrictions on rent increases, is the most effective way to prevent renovictions and major rent hikes between tenants.

But an Urban Development Institute survey of thirty of B.C.’s major rental home builders found that if vacancy control ever got on the books, fully two-thirds of purpose-built rentals currently in development would be delayed or cancelled.

ENM’s co-founder, Daniel Greenhalgh, believes the policy would spell the end of the purpose-built rental industry as we know it. “No one would build rental units. It would make no sense financially. One of the biggest causes of our housing crisis is the lack of rental supply, and this would destroy any attempt to solve that.”

Dan points out another issue with the proposed policy: if enacted, there would be no incentive for landlords to update or properly maintain the unit. Not only would there be no resources for it, there would be nothing to gain from renovating the units to keep them modern, stylish and desirable. Swaths of buildings would see rapid decay.

Developers like us at ENM are encouraged by the campaign statements of new Vancouver mayor Kennedy Stewart in which he stressed the importance of working in good faith with our industry to address the housing crisis and increase the supply of rental properties. But we can’t let a crisis push us to take such extreme measures as this, measures that would cripple one of the major industries in B.C.

Vacancy control, if it’s ever enacted, would quickly become the poster child for horrible unintended consequences of well-meaning legislation. We urge the Rental Housing Task Force to pursue other measures to address affordability issues in the rental housing market.

 

(Newswire.net — December 17, 2018) Langley, BC —