Since I was first elected to Langley City Council in 2016, there has been a steady stream of housing projects, and the number of projects has been ramping up over the years. This year, I’ve noticed a decline in new projects.
While many housing projects are still under construction, new submissions have stalled. Langley City has an Advisory Design Panel, which includes experts and regular community members who provide feedback on proposed development projects. Last year, this committee reviewed about a dozen housing projects. This year, the committee has reviewed five projects to date. You might think that the number of projects seems to be tracking the same as last year, but there are a few things to consider.
For one project, the applicant decided to cancel the project. Another project was the B.C. Builds projects, funded with the help of the provincial government, low-cost land from the City, and a church providing land. The last time the Advisory Design Panel met was in April.
I heard from elected folks in other Metro Vancouver communities that new housing projects have also slowed down in their communities.
A recent report from the Canada Mortgage and Housing Corporation found that we need to double the amount of new housing built annually to restore affordability to the Canadian housing market.
The federal government has recently reduced immigration numbers. Many people thought this would allow the housing supply to “catch up.” If new housing construction is also slowing down, we may not see this “catch-up.”
Talking to home builder, they say financing costs, material and labour costs, and even the fees local government charges (which are needed) puts the price of housing above what the market can bear. These costs mean that projects are simply not moving forward.
So, what are the solutions? A few ideas come to mind that are easy to say but require more effort to implement.
The government must expand financing programs that provide low—or no-interest loans, such as the current Apartment Construction Loan Program. Modernizing construction, such as with modular housing, to reduce costs and speed up the timeline is more challenging but necessary.
While the federal government is now doing more to manage the demand for housing, we still need to “catch up” to deliver more affordable housing.