Report shows flaws in plan to increase affordable housing

VANCOUVER (NEWS1130) – Housing has not become more affordable in Metro Vancouver, despite efforts by a regional committee launched five years ago. A goal to increase the number of affordable units has also not been met.

The figures are in the Metro Vancouver Housing Committee‘s agenda for Friday.

Committee Vice Chair and Vancouver Councillor Geoff Meggs admits there’s a problem.

“It’s harder to buy, it’s more expensive to rent, and those indicators are going in the wrong direction,” Meggs says.

He says the number of starter homes $385,000 or less is down by the thousands and it’s much worse for rentals.

“This is a really disturbing trend but it’s not a surprise to anyone,” Meggs points out. “I mean if you look at the number of rental units that are at or below $750 a month, and we’re talking Metro Vancouver not just the City of Vancouver, that number has dropped more than half.”

Between 2007 and 2012, the average monthly rent rose by about $150 from $898 to $1,047.  The number of ‘affordable units’ at or below $750 a month dropped from 34,000 to 15,000. The rental pool has grown though, with nearly triple the number of rental housing starts.

When it comes to property ownership, there are thousands fewer entry level homes. The average cost of a new single detached home rose nearly $200,000.

The goal to increase the supply of affordable housing and entry level ownership was set in 2007.

Some of the work planned is still in progress but other aspects are being ‘updated.’

While targets haven’t been met everywhere, Meggs says the five year plan gives a better idea of where we’re at as a region. He insists progress is being made, especially on homelessness and improving the rental stock. There are far more units out there than five years ago, just not in everyone’s price range.

Meggs says the affordable rental housing stock would increase rapidly if the provincial and federal governments became more involved.