In Vancouver, why is the rent too damn high? (Hint: it’s not inflation or market changes)

August 27, 2024 by Leave a Comment

 

Like most cities, Vancouver is an expensive place to live in. Located in British Columbia, Vancouver is the third largest metro area in Canada. According to a recent report, Vancouver is also the third least affordable housing market in the world, after Hong Kong and Sydney, Australia. For each of the last 16 years, Vancouver has been the first, second or third least affordable major market. That’s some distinction. According to the report, Vancouver’s housing market is “impossibly unaffordable”. Impossibly … and in fact.

What happens in Vancouver does not stay in Vancouver: “Troublingly, impossibly unaffordable housing in the Vancouver market has also has spread to smaller BC markets in British Columbia …. From 2015 to 2023, housing affordability worsened by the equivalent of 2.5 years of median household income in smaller markets outside Vancouver, an even greater loss than the 1.2 years in the Vancouver market itself.” Troubling, indeed.

An equally recent report from British Columbia’s Office of the Human Rights Commissioner, noted the depth, breadth and centrality of the impossibly unaffordable housing crisis: “The collision of market forces with inadequate social supports has pushed thousands of B.C. residents into homelessness and left many more on the brink.” Unsurprisingly, homelessness and severe housing insecurity target women and children, Indigenous people, people of color, people living with disabilities, low-income people. According to the Commissioner, “In our research unaffordable, inaccessible and inappropriate housing quickly and unsurprisingly rose to the top of the human rights issues facing British Columbians.” Unsurprisingly.

Another unsurprising report, from BC Housing, the provincial housing agency,  considers the workings of two public agencies, Shelter Aid for Elderly Renters Program, SAFER, and the Rental Assistance Program. SAFER launched in 1977, the Rental Assistance Program started in 2006. The report found that both programs have done a fairly decent job until recently, but rapidly rising rents have threatened that success: “While SAFER and RAP help to make housing more affordable, a significant affordability gap for many SAFER and RAP recipients exists. …. Recipients of both programs are in danger of entering into homelessness or seeking affordable options that may result in living in unsuitable or unsafe housing should rents continue to increase …. The impact of these programs has declined over time as housing costs have increased dramatically across the province.”

Vancouver is impossibly unaffordable; unaffordable, inaccessible and inappropriate housing is the key human rights issue; and previously fairly successful assistance programs are now endangered, all thanks to rapidly rising rents. What is to be done? While all the authors of all the reports are committed to housing justice, to equal access to safe and dignified housing as a human right, they also all fall prey to the Great Market Forces Fallacy. Consider this statement, from the last report’s conclusion: “There is no doubt that both SAFER and RAP are helping to achieve greater affordability for many recipients …. However, the rent ceilings and the lack of indexing to inflation or market changes was readily identified by all as a barrier to affordability. For some, the lack of change in benefits has resulted in them being priced out of the rental market in their desired community. It has also limited their ability to move out of less desirable housing. The stress of possible evictions is high due to the inability of the benefit to adequately contribute to new rents should the household be required to move.” Clearly and unsurprisingly, recipients need subsidies to match rising rents. But then what? Rents are not rising because of inflation. Rents are rising because landlords, increasingly corporate landlords, are able and more than willing to raise rents precipitously. As long as homes are part of a “real estate market”, as long as public and social housing in considered an afterthought, as long as landlords are lords of the land, rents will continue to rise … rapidly.

In the late 1880s, looking around at the ways in which the new urban real estate market was carving up Manchester, Friedrich Engels noted, “The English bourgeoisie is charitable out of self-interest; it gives nothing outright, but regards its gifts as a business matter, makes a bargain with the poor, saying: `If I spend this much upon benevolent institutions, I thereby purchase the right not to be troubled any further, and you are bound thereby to stay in your dusky holes and not to irritate my tender nerves by exposing your misery. You shall despair as before, but you shall despair unseen, this I require, this I purchase with my subscription of twenty pounds for the infirmary!’” The barrier to affordability is not inflation nor market changes. It’s the unchanging cruelty of the market itself, unsurprisingly, impossibly, troublingly, and everyday.

 

(By Dan Moshenberg)

(Image Credit: Visual Capitalist)

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With astronomical eviction numbers and nowhere to go, British Columbia “returns to normal”

May 16, 2023 by 1 Comment

The Balanced Supply of Housing Research Cluster at the University of British Columbia released a report last week, “Estimating no-fault evictions in Canada: Understanding BC’s disproportionate eviction rate in the 2021 Canadian housing survey”. Looking at data from the 2021 Canadian Housing Survey, researchers wanted to find out eviction rates, reasons for evictions, and what happened in the first period of the Covid pandemic. On all counts, British Columbia scored the highest, or failed the most profoundly, depending on one’s perspective. Between April 2016 and early 2021, 10.5% of B.C. renter households reported being forced to move, compared with the national rate of 5.9%. At some level, none of this was surprising or new, since British Columbia has consistently led the nation in evictions. What was new is this: “British Columbia’s high eviction rate is driven by higher rates of no-fault evictions …. 85% of evictions reported by renter households in British Columbia in the five years prior to data collection were no-fault evictions.” Paid your rent on time, the landlord never had any issues with you, you were an ideal tenant? Who cares? You’re out. And not only are you out, you have nowhere to go. They call that market-forces justice.

Here’s more market forces justice. Most provinces had some sort of eviction ban during the Covid pandemic, and yet the number of evictions remained relatively stable. How can that be? According to the report, there are at least two reasons. First, once the bans were lifted, eviction processes were “accelerated”. Second, “despite all the eviction bans that were implemented, at least 38,900 – 68,080 renter households were evicted during the first year of the pandemic in Canada.” Were landlords punished for these evictions? No. That too is market-forces justice.

In British Columbia, there is rent control for those who living in a unit. There are no controls or limits on how much a landlord can charge a new tenant. There are no real controls on no-fault evictions. A landlord simply has to claim they want to sell, inhabit, renovate, repair, or demolish the property. There’s no requirement of proof of any kind. Many of those who were evicted report that their former homes remain vacant for months, even years, afterwards. There’s no enforcement because there’s nothing to enforce.

Fiona Scott lives in Vancouver. In the past decade, she endured three no-fault evictions. The last one was over a year ago. The unit she used to call home remains vacant to this day. Meanwhile Fiona Scott lives in a much smaller apartment, for which she pays $500 more a month, and so has had to take on extra work. “You have an emotional connection to your house, it’s your safe space… and then all of a sudden it’s gone. It wasn’t an emotional journey I was prepared for.”

Linda de Gonzalez is a 70-year-old pensioner who has lived in her apartment for 20 years. This year the landlord raised the rent 43%, starting in June. But what about rent control? The landlord said that if de Gonzalez didn’t accept the exorbitant increase, he’d sell the unit. Again, there’s no requirement of proof. “It really was utterly and completely devastating. I literally felt my stomach fall out. I just sat on the floor and I cried and I cried and I cried. And I kept thinking what am I going to do? I have nowhere to go.” I have nowhere to go.

A second report, issued by Vancouver’s First United Church Eviction Mapping Project, found that 27% of evicted people had not found a place to live. 45% of Indigenous respondents had not found a place to live. 31% of people of color had not found a place to live. 34% of people living with disabilities had not found a place to live. For those in the lowest income bracket, 53% had not found a place to live. “People with an annual income of less than $50,000 were almost three times as likely to become homeless than those with an annual income of over $50,000.” Meanwhile, 12% of those earning more than $50,000 a year had not found a place to live. Of those who did find somewhere to live, for most it had to be in a new neighborhood, meaning no support systems. 80% of evicted residents reported neighborhood displacement. For evicted Indigenous residents, that was 91%.

The report notes, “For many evicted tenants, homelessness was long-term as they struggled to find a way back into the rental housing market amidst massive increases in the amount of rent landlords are charging.” Homeless was, and is, long-term.

As Anne Waldman once wrote,

“it is error it is speculation it is real estate

      it is the villain and comic slippery words

            the work of despotic wills to make money”

Nowhere to go, nowhere to go, nowhere to go.

(By Dan Moshenberg)

(Infographic: The University of British Columbia)

 

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British Columbia decided that rather than be second in the race to the bottom, it would prefer to be first in the pursuit of justice

July 23, 2022 by 2 Comments

#WelcomeToCanada

On Thursday, July 21, 2022, British Columbia’s Minister of Public Safety and Solicitor General, Mike Farnworth announced that the province will end its immigration detention contract with the Canada Border Services Agency (CBSA). The province would no longer hold immigrant detainees in provincial jails. Minister Farnworth explained, “In the fall of 2021, I committed to a review of BC Corrections’ arrangement with the CBSA on holding immigration detainees in provincial correctional centres. This review examined all aspects of the arrangement, including its effect on public safety and whether it aligns with the United Nations Standard Minimum Rules for the Treatment of Prisoners and expectations set by Canadian courts …. The review brought to light that aspects of the arrangement do not align with our government’s commitment to upholding human-rights standards or our dedication to pursuing social justice and equity for everyone.”

Part of the impetus for the provincial review came from a joint Human Rights – Amnesty campaign, #WelcomeToCanada, launched last year, on June 20, World Refugee Day. At the launch, the campaign noted, “Between April 2019 and March 2020, Canada locked up 8,825 people between the ages of 15 and 83, including 1,932 in provincial jails. In the same period, another 136 children were `housed in detention to avoid separating them from their detained parents, including 73 under age 6 … Since 2016, Canada has held more than 300 immigration detainees for longer than a year.”

This week, Ketty Nivyabandi, secretary general of Amnesty International Canada (English Speaking), said, “Today’s decision is a momentous step. We commend British Columbia on being the first province to stop locking up refugee claimants and migrants in its jails solely on immigration grounds. This is a true human rights victory, one which upholds the dignity and rights of people who come to Canada in search of safety or a better life.”

Kasari Govender, British Columbia’s current and first independent Human Rights Commissioner, added, “Detaining innocent migrants in jails is cruel, unjust and violates human rights commitments. CBSA may still hold migrants in a detention centre, but this a significant first step towards affirming the human rights of detainees. Now, it is up to the federal government to abolish all migrant detention and expand the use of community-based alternatives that support individuals.”

The decision is momentous, landmark, in a number of ways. In and of itself, it marks the first province to stop the brutal practice, and to do so in the name of human rights, social justice and equity. Additionally, until now, British Columbia is a leader in the incarceration of immigrants. From 2019 to 2020, 22% of detained immigrants were held in provincial jails. Then Covid hit. The number of people held in 2020 – 2021 dropped to 1605, of whom 40% were held in provincial jails. In the two years under review, only Ontario exceeded British Columbia in the incarceration of immigrants, asylum seekers, refugees. This week, British Columbia decided that rather than be second in the race to the bottom, it would prefer to be first in the pursuit of justice.

 

(By Dan Moshenberg)

(Image Credit: Amnesty International Canada)

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