Port Moody Affordable Housing Workshop Dan Garrison, City of Vancouver June 9, 2018
Housing Vancouver Strategy The 10-Year Housing Vancouver Strategy is intended to foster a diverse and vibrant city, and is founded on the following: 1. Creating the Right Supply of housing and address speculative demand 2. Protect and retain the existing rental stock 3. Support vulnerable residents 2
Housing Stock Growth Increased starts and completions; highest rental construction in decades Increased starts and completions in market rental, non-market, and ownership housing - nearly 16,000 units started and almost 11,000 units completed in the last two years; rental units are being approved at levels we have not seen since the 1970s 12,000 10,000 8,000 6,000 4,000 2,000 0 29% 6% 12% 15% 19% 14% 26% 19% 22% 27% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 30000 25000 20000 15000 10000 5000 0 Vancouver annual housing starts, 2008-2017 Owner Rental 10-Year Average (2008-2017) Market and Non-Market Rental Approved and/or Under- Contruction Non-Markwet Rental Completed Market Rental Completed Historical Rental Housing Development 3
Housing Market Demand Strong ownership and rental demand High level of property sales over 10,000 property sales in 2017 Low purpose-built rental vacancy rates 0.9% Citywide in primary rental apartment market in 2017 14,000 12,000 10,000 8,000 6,000 4,000 2,000-2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2012 2013 2014 2015 2016 2017 Total Annual Property Sales in City of Vancouver, 2012-2017 1.9 1.3 1.4 0.7 1.8 1.1 1.7 1 1 0.8 0.5 0.6 0.7 0.8 0.9 0.9 CoV 2010 2011 2012 2013 2014 2015 2016 2017 Vacancy Rate (%) for Primary Rental Apartments, 2010-2017 Apartment Attached Detached Metro Vancouver 4
Housing Market Demand Growing city and regional labour force 640,000 630,000 620,000 610,000 Growth in population population has grown over the past 10 years 600,000 590,000 580,000 570,000 560,000 578,041 603,502 631,486 Residents 550,000 2006 2011 2016 City of Vancouver population, 2006-2016 1,400,000 1,350,000 Increasing regional labour force more people are working in Metro Vancouver, which impacts housing in CoV 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 1,169,725 1,273,335 1,355,520 Vancouver CMA 1,050,000 2006 2011 2016 Metro Vancouver Labour Force, 2006-2016 5
Housing Market Demand Major spikes in home prices; modest increases in incomes and rents 200% 180% Detached price - Van East Primary market average rent Apartment price - Van East Median income Prices continue to increase faster than incomes Benchmark prices rising at higher rate than incomes. Increases to average rent more closely matches increases to income. 160% 140% 120% 100% 80% 60% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cumulative change in housing costs and income, 2006-2017 6
Housing Affordability Higher income brackets representing more of population Changing income distribution households in lower income brackets are less prevalent in the city than they were 10 years ago and higher income brackets are more prevalent. This is true in both rental households and owner households. 100% Owner Households 100% Renter Households 90% 90% 80% 80% 70% 70% 60% >$150k 60% >$150k 50% 40% 30% 20% 10% $80-150k $50-80k $30-50k $15-30k <$15k 50% 40% 30% 20% 10% $80-150k $50-80k $30-50k $15-30k <$15k 7 0% 2005 2010 2015 Income distribution, owner household annual income 0% 2005 2010 2015 Income distribution, renter household annual income
8 Shifting to the Right Supply
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 9
Affordable Housing Delivery 1. Private Sector Incentive Programs 2. Social Housing on City Land: contributed to partners at discounted or nominal rates 3. Social Purpose Real Estate Program: capital grants, development incentives, expedited processing for non-profit affordable housing projects 4. Inclusionary Housing: social housing requirements in private developments
Secured Market Rental Housing Incentives Rental 100 Program (2012) Density bonus Waiver of Development Cost Levies Parking relaxations Relaxation of unit size to 320 sq. ft. Concurrent processing to expedite development approvals 2008 2012 = 350 units per year 2013 2017 = 1,100 units per year 11 11
Moderate Income Rental Housing Pilot Program Time-Limited Pilot to Deliver up to 20 Projects 100% rental projects with a minimum 20% of floor area for moderate income households earning $30k-$80k per year First 20 project proposals include approximately 3,000 units total with ~25% secured at below market rates in perpetuity Key Objectives Prioritize rental housing shift towards the right supply Target a key gap in the market Test development industry interest to create this type of rental Test feasibility at different locations and housing forms 12
VAHA - Community Land Trust Partnership 7 new sites of City-owned land Will deliver approximately 1,000 units of affordable rental, expected to be ready for occupancy by 2021 Units will be targeted to households earning $30k- $80k per year Largest one-time municipal land investment in community housing sector in Canada ($130M)
Delivering Temporary Modular Housing Dedicated staff team & expedited process for reviewing and approving TMH Goal of building 600 units in 2018 DP/BP average: 8 week concurrent process 4 of 8 weeks = public consultation 406 Homes Approved and Underway 156 Built & Tenanted 104 Under Construction 46 at DP Stage 100 Pre-DP
Housing Vancouver Priority Actions Launch a New Social Purpose Real Estate Incentive Program Support non-profit, co-op, and faith-based partners in expanding and renewing affordable and social housing. Develop an incentive program that includes additional density and increases in per-door grants 48
Developer Contributions and Inclusionary Zoning The Creek by Concert Properties 135 units of mixed income affordable housing - 50% of the units for families with children New Housing Co-op being established to operate under Community Land Trust Enabling renewal of other co-ops 16
Protect and Retain Existing Stock
Housing Vancouver Approach to Rental Protect Renew Redevelop New Supply RHS ODP protects existing stock Encourage upgrades + energy retrofits Community plans enable redevelopment of existing rental, with affordability requirements Target for >40K new rental units: Broadway Corridor; Station Area Plans; MIHRPP Protect and Support Renters Work with BC gov on RTA reform Tenant Relocation and Protection Policy
Rental Protection Regulations: Rental Housing Stock Official Development Plan Rate of Change Areas (1:1 Replacement and Tenant Relocation and Protection Policy Other Areas Where Tenant Relocation and Protection Policy Applies 19
Regulations Effective in Stopping Rental Loss Market Rental Units Demolished in Rental Housing Stock ODP Areas (1985 2017)
The result: Rental units are being approved at levels we have not seen since the 1970s