“The City approved the creation of a new Affordable Housing Agency last night, an arms-length organization based on best practices in other cities to enable the creation of new low and modest income housing in Vancouver.
The Vancouver Affordable Housing Agency (VAHA) will also collect available data on issues such as vacant homes, and provide information on ways to limit investor speculation and unnecessary vacancies in Vancouver’s housing market.
“The Vancouver Affordable Housing Agency will be a key tool in the City’s efforts to create new affordable housing that meets the needs of local residents,” said Mayor Gregor Robertson. “As well, by designating it as a research hub to monitor issues such as vacant homes and excessive investor speculation, the VAHA will contribute to an informed, fact-based discussion of Vancouver’s housing market.”
The VAHA will be comprised of a board appointed by City Council, which will include members of the community with expertise in real estate, non-profit housing, and tenant issues, among others. Its target is to create 2,500 new affordable homes by 2021, with 500 in the first three years, with a focus on affordable housing geared towards families.”
Above noted, for the record.
A “fact-based discussion of Vancouver’s housing market” sounds like a great idea.
That aside, it would be extraordinary for an Agency like this to make a real difference. It is very, very difficult to create genuinely affordable housing in the context of an extremely overvalued market.
This kind of initiative usually acts as a marker to remind us that people are concerned about the issue, rather than being a force for any substantial change.
“Fitch Ratings says Canada’s real estate market is as much as 20 per cent overpriced and cautions the government may need to take more measures to slow down borrowing on homes. Fitch is the second U.S. financial agency to sound the alarm on Canadian home prices in the past week, with the Morningstar research firm predicting a 30 per cent correction was possible over the next few years.
The latest warning comes as the Teranet–National Bank composite house price index for June showed prices rose 0.9 per cent from May and were up 4.4 per cent from last year. The year-to-year gain was the lowest in six months, but still more than twice the underlying level of inflation in Canada and above income growth. Prices were 8.1 per cent higher Calgary compared with a year ago, while Hamilton saw increases of 7.3 per cent and Toronto and Vancouver climbed 6.1 per cent. …
Whether Canada’s home prices are due for a big fall has been a hotly debated topic in Canada for several years, but as yet predictions of a housing bubble about to burst have not materialized.”