Real estate expert wary of Vancouver mayor’s proposed housing plan

VANCOUVER (NEWS 1130) – A housing expert says Vancouver Mayor Gregor Robertson’s plan to give locals first crack at homes for sale will have little impact.

“Developers could probably get around this by starting the pre-marketing a little bit earlier than they would have otherwise,” explains Tom Davidoff with UBC’s Sauder School of Business. “That means there won’t really be a difference in their profitability if they do or don’t sell to locals which is a critical issue.”

Mayor Robertson is intending to introduce a motion at the next city council meeting, calling for a policy that would give prioritize sales of new homes in multi-family developments within the city to local residents.

A news release from the mayor’s office says Robertson will ask staff to bring forward a policy by the end of this year.

In a video on Twitter, Robertson says the city’s economy is red-hot and “tons of new jobs and tons of new housing” are being created. “We’re connecting the dots here. Young families, in particular, people working in the City of Vancouver [should] get first dibs on new developments so they can access the housing market.”

“I will be introducing a motion so that people who live and work in Vancouver have that first option to buy into new projects during the pre-sale period, before they’re offered out to the rest of the world.”

Davidoff predicts this could drive foreign sales up in other parts of the Lower Mainland. “You might see out of town buyers looking to those communities instead of the ones in which they’re locked out. This is mostly about optics and I don’t see it having a significant impact on affordability.”

The housing expert suggests the quickest fix is boosting the supply of housing. “The more homes that are built, the lower prices will be for anybody who wants to buy property here. The empty homes tax was a great idea. We ought to be addressing both the supply side and the demand side,” he says.

Robertson says he regularly hears stories of people who work in Vancouver but, due to the sizzling housing market, are forced to move outside the city to find a place to live. He says his priority is to deliver housing that meets the needs of people who live and work in Vancouver.

West Vancouver already has legislation declaring the first 30 days of marketing is exclusive to locals, followed by a 60-day period for anyone living in Metro Vancouver.

Buyers in that city are also required to sign a contract promising not to flip their home and bulk purchases are restricted.