Housing Vancouver Strategy Presentation To City Council November - PowerPoint PPT Presentation

Housing Vancouver Strategy Presentation To City Council November 28, 2017

Housing Affordability - A City on the Edge 1 ecstaticist

The Challenges Are Many and Complex 2

Shutterstock Daily Hive We Need to Do More to Keep Vancouver Vibrant and Diverse 3

Presentation Outline 1) Vancouver’s Housing Crisis 2) Our Process & What We Heard 3) Housing Vancouver Strategy & Targets 4) Housing Vancouver Priority Actions 4

Housing Vancouver: How Did We Get Here? • 10-Year Strategy • Action plan • Moderate Income Rental Housing Pilot Program • CAC Policy for 100% Rental Rezoning Projects 5

1) Vancouver’s Housing Crisis 6

Global Trends $ • Trend toward ‘financialization of housing’ and real estate as commodity investment – not just a place to live, but a place to invest in for capital gains, retirement income, etc. National Trends • Vancouver leads the nation in the highest home prices • In 2016, the average resale home listing was priced at $957,400 (35% higher than Toronto 180% higher than Montréal) Regional Trends • 77,800 new jobs in Metro Vancouver from 2015-2017 • Population is forecasted to expand in Metro Vancouver by ~65,000 each year until 2021, double the five year average growth rate from 2011-2016 7

Evidence of Speculative Investment CMHC Housing Market Assessment: Reports high evidence of overvaluation in Metro Vancouver, which cannot all be explained by fundamentals “ Improvements in fundamental factors such as population, income, actual and expected financing costs, and land supply cannot fully explain the growth in home prices ” “ Short-term price gains can attract investors and promote speculative activity that pushes prices further upwards ” Source: CMHC Housing Market Assessment for Vancouver CMA, Q4 2017 8

Incomes Have Not Kept Pace with Housing Costs Vancouver Housing Costs vs. Median Income 400% Increase in Median 350% 350% Eastside Single ‐ Detached Sales Price 300% Average Rent 250% % Increase 200% Vancouver Median Income 150% 100% 67% 50% 18% 0% 2001 2016 Sources: CMHC Rental Market Survey 2016 Real Estate Board of Greater Vancouver Benchmark - Fall 2016 9 Statistics Canada - Census 2001-2016

Housing Prices Far Exceed Median Incomes Vancouver Housing Costs vs. Median Household Incomes $3,000 Owner Median Income Renter Median Income $2,500 $88,431 $2,000 Monthly Costs $1,500 $50,250 $1,000 $500 $0 Average Rent Average Rent (New Building +2005) Condo Ownership Costs (Vancouver Eastside) Sources: CMHC Rental Market Survey 2016 Real Estate Board of Greater Vancouver Benchmark Housing Cost of Eastside Condo fall 2016 Taxfiler 2014 Median Incomes 10

The Highest Rents in Canada Average Rents By Bedroom Type (2016) $2,500 Montréal Toronto Vancouver $2,000 Average Rents $1,500 $1,000 $500 $0 Bachelor 1 Bed 2 Bed 3 Bed+ Unit Type Source: CMHC Rental Market Survey 2016, 11

Extremely Low Rental Vacancy Vacancy Rate: Metro Vancouver vs. City of Vancouver 2.5 Vancouver 2.1 2 1.9 Metro 1.8 Vancouver 1.7 Vacancy Rate (%) 1.4 1.5 1.2 1.3 1.0 1 1.1 1.0 0.8 0.8 0.7 0.7 0.7 0.5 0.6 0.5 0.5 0.5 0.3 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: CMHC Rental Market Survey 2016 12

Persistent & Rising Homelessness City of Vancouver Homeless Count Results (2005-2017) 2500 Sheltered Unsheltered Total 2,138 1,847 2000 1,803 1,746 537 1,715 1,581 1,602 1,600 1,576 539 536 1,364 421 154 488 1500 273 306 811 591 1000 1,601 1,427 1,327 1,308 1,294 1,296 1,267 1,258 500 773 765 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: 2017 Metro Vancouver Homeless Count: City Of Vancouver ( 2005-2017 Trend) 13

Vancouver’s Housing Crisis: Urgent Action Needed • The housing crisis is complex and multifaceted • Urgent action is needed from all levels of government Metro News Financial Post 14

2) Our Process & What We Heard 15

A Year of Stakeholder Engagement Creative Advisory Process Evidence- Accelerating Based • Over 60 stakeholders, Non-Profit/City Responses to Partnerships partners, experts, and Homelessness advocates Affordable • Intensive workshops on Housing housing challenges and Innovation & Design Group solutions • Regular engagement and The Economy & Strategic Housing for updates Investments in Young Workers Rental Housing & Families 16

Fall 2016: Re:Address Week Conversations on Housing with Local & Global Experts • >1,000 participants in Re:Address week events , including discussion events, walking tours, and collaborative workshops • 391 local and international delegates at Re:Address Summit • 35 speakers from global cities throughout North America, Europe, and Oceania 17

Spring 2017: 10,000+ Participants in Housing Vancouver Public Engagement • Two public surveys ; Big Conversation pancake breakfast; embedded consultation , stakeholders and social media • 62% renter response to Talk Vancouver Residents’ Survey • Majority of participants under 40 years old 18

Fall 2017: In-Depth Partner Review of Strategy + Action Plan • Stakeholder Launch • Expert Review Panel › 20+ local and national Event experts › 80+ partners and advocates › Action Plan preview + feedback • Stakeholder Meetings › Council Advisory Committees › Industry › Academics & Policy Experts 19

What We Heard: Residents Are Looking For a Broad Range of Affordable Housing Options Q: Given your budget and housing preferences, what types of housing would you be looking for in this next move? High Rise Mid Rise Low Rise Townhouse / Apartment Apartment Single-Family Laneway / Basement Apartment Rowhouse / (14+ (6-14 Home Coach House Suite (to 6 storeys) Duplex storeys) storeys) Own 21% 23% 28% 46% 37% 13% 3% 32% 43% 58% 40% 23% 26% 21% Rent Source: Talk Vancouver Housing Survey, n=8,425 20

What We Heard: Younger Generations & Families Are Concerned About Their Future in the City • Young People and families are making significant trade-offs to stay in Vancouver Key Housing Gaps › Rental options for families earning <$80k / year › Ownership options for families earning <$150k / year 21

What We Heard: Addressing Homelessness is a Top Priority for Vancouverites • Rising housing costs mean housing insecurity and risk of homelessness for low- income residents Key Housing Gaps › Social & supportive housing for those with low and very low incomes, <$30k / year › Rental for singles earning <$50k / year 22

What Is At Risk? What Kind of City Do We Want? If we do nothing, we risk losing the diversity, vibrancy, and community connections that make Vancouver great 23

3) Housing Vancouver Strategy & Targets What are we going to do? 24

Housing Vancouver : A Vision Based in Values Core Values That Guide Our New Approach Affordability Connection Diversity Security Equity 25

Sustaining Today’s Diversity for Tomorrow Means We Need to Do More 12% Singles: <$30,000 Singles: $30,000-50,000 5% Owner Occupied Condominiums (26%) Singles: $50,000 - $80,000 5% Owners Renters Singles: >$80,000 3% 4% Families: <$30,000 Other Owner Occupied Housing (21%) 4% Families: $30,000-50,000 Families: $50,000 - $80,000 7% 4% Families: $80,000-$100,000 8% Families: >$100,000 26 Source: Census 2016, Household Tenure By Income Groups

How Will Housing Vancouver Accomplish This? • Shift toward the right supply by building more affordable housing and limiting speculative investment • Protect our existing affordable housing stock for the future • Increase support and protection for those who need it most 27

How Is This Plan Different? Shifting Towards the Right Supply 28

Housing Vancouver Targets the Right Supply What is the Right Supply ? Household Income Location Household Type Household Tenure Building Form Housing With Supports 29

Housing Vancouver Targets Are Better Matched to Local Incomes 10-Year Housing Targets (2018-2027) 5,200 1,600 2,000 3,000 200 12,000 17% 2,500 12,000 5,500 20,000 28% 6,500 16,500 7,000 30,000 42% 2,000 2,000 4,000 5% 300 700 1,000 1% 1,700 3,300 5,000 7% 5,200 1,600 4,500 23,500 26,200 11,000 72,000 100% 7% 2% 6% 33% 37% 15% 100% 30

Housing Vancouver Targets Drive a Shift Toward the Right Supply • 72,000 new housing units over 10 years • 65% of new housing will be for renters including: › 20,000 purpose-built rental units › 12,000 social, co-op and supportive housing units • 10,000 new ground-oriented units suitable for families with children and downsizing seniors 31

Housing Vancouver Nearly Doubles Our Previous Targets for New Housing Overall 10-Year Targets for New Housing 72,000 units 38,900 units Housing and Homelessness Housing Vancouver Target Target (2012 ‐ 2021) (2018 ‐ 2027) 32

Housing Vancouver Targets – Significant Increase in Rental, Non-Market and Family Housing Options Targets by Housing Type (Old vs New) Housing and Homelessness Strategy (2012-2021) Housing Vancouver Targets (2018-2027) 33