Such measures can help workers, claims BCGEU
The British Columbia General Employees' Union (BCGEU) is calling on the provincial government to implement vacancy control measures to help out workers amid the rising cost of rent.
BCGEU is pushing for a four-pronged approach to vacancy control.
The approach will combine a Land Value Capture Tax (LVCT) and expanded inclusionary zoning with robust public housing, in addition to Vacancy Control.
“LVCT would deter speculation – eventually cooling the housing market – and provide government with the funds it needs to build and manage quality, affordable public housing,” the union said.
“Meanwhile, the proposed inclusionary zoning policy would require [that] 50% of the units in all new developments get an affordable-housing designation, where rent is locked at 30% of the tenants' income.”
This will create an environment where “the corporate landlords and developers cannot own, flip and sell more people in B.C. out of their homes," said Kari Michaels, BCGEU vice-president.
"Our proposal unchains housing from the restrictive and volatile market we currently see, so that we can eventually decrease rents, increase the stock of quality affordable housing and ensure that people living and working here have quality homes, without having to sacrifice food, heat, internet, or winter boots for their kids just to keep a roof over their head."
Vancouver is the second most expensive city in Canada, according to a previous report from Mercer.
Rising cost of rent in B.C.
This comes as B.C. renters are bracing themselves for another 3.5-per-cent rent-hike in 2024. And those looking for new homes could pay more, according to the union.
"Vacancy Control would limit rent increases between tenants, which is a major cause of unfair evictions and displacement," said Michaels. "In many cases landlords make homes so unlivable that occupants have no choice but to leave, all so the landlord can convert the same $900-a-month suite into a $2,400-a-month one."
This will cause trouble for workers, he said.
"Whether you are the person unfairly displaced, or you're a prospective renter coming in behind them – possibly a student leaving home for the first time, a new Canadian moving to B.C., a growing family seeking more space, or a worker relocating to a neighborhood that's closer to a job – everyone loses because the number and diversity of affordable homes dwindles. A 3.5% increase on in-place rents is daunting enough for workers, especially in the face of our inflationary crisis, but for your typical workers and families, market-rate housing is often completely out-of-reach."
Cookie-cutter building
One group, however, questioned BCGEU's credentials when it comes to speaking on the matter of rent control.
“Why is a union suggesting housing policy? They lack expertise in housing economics. Vacancy & rent control kills rental housing,” said non-profit group StepUp via social media platform X. The group supports current and future homeowners and resident/business property taxpayers across Canada.
Previously, Paul Sullivan, a B.C. property tax expert and principal at the Ryan Tax Firm, claimed that additional tax on property owners will not solve the problem.
“Five years of various experimental new housing taxes have failed to significantly increase affordable homes for rent or sale,” he said.
“The large increases in both home prices and rents show these new taxes failed. Vancouver now has the highest rents in Canada and second-highest house prices. More of our city’s small businesses are also closing, from new tax applications to unbuilt homes and ‘airspace’ above their one-storey shops.”
Instead, what the government should do is to build more homes, he said.
“A couple quick fixes would be for the city to approve cookie-cutter building designs that could be fast-tracked if submitted by qualified builders. Vancouver could also offer, like other communities, fee waivers, tax rebates or additional density on more rent-to-own developments.
“Solutions to the housing crisis will be found in the many ways government can encourage increased construction with carrots, not through the sticks of endless new taxes and red tape.”
For organizations that switch to a hybrid work model, the savings accrued can be as high as $13,000 per employee each year, according to a previous report.