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Scott Andison - Real Estate Forums · PowerPoint Presentation Author: Scott Created Date: 9/2/2016...
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RENTAL HOUSING AFFORDABILITY AND GOVERNMENT POLICY IN ONTARIO DATE Scott Andison September 7, 2016
Transcript of Scott Andison - Real Estate Forums · PowerPoint Presentation Author: Scott Created Date: 9/2/2016...
RENTAL HOUSING
AFFORDABILITY AND
GOVERNMENT POLICY
IN ONTARIO
DATE Scott Andison
September 7, 2016
2
0
2,000
4,000
6,000
8,000
10,000
12,000
Actu
al R
en
tal U
nits C
om
ple
ted
An
nu
ally
Year
ANNUAL NEW APARTMENT UNIT COMPLETIONS HAS DECLINED OVER TIME
Source: CMHC Rental Housing Starts and Completions Survey
Impact of gov’t policies on new rental supply
3
Rental demand continues to outstrip supply in
Ontario…and it’s getting worse
4
Government Job Rating (2016 FRPO Public Opinion
Poll)
Strong majority say government doing too little to help
low-income families and seniors
2%
6%
4%
4%
19%
22%
19%
31%
31%
31%
61%
60%
50%
46%
28%
15%
15%
15%
20%
23%
Too much The right amountToo little Don't know
Immigrants
Students
Families
Low income
individuals and
families
Seniors
50%
5
WHAT THE
EVIDENCE SAYS
171,360 households
on waiting list for an
affordable home
270,000 social
housing units in Ontario
with a capital shortfall of
$1.2 billion
Poverty Reduction Strategy
WHAT THE
ANNOUNCEMENTS SAY
6
Ontario’s Rental Housing Supply Environment
A high quality
rental housing
market that
responds to
changes in
consumer demand
Sufficient rental
housing stock for
all income levels
A stable business
climate that
encourages new
development
THE INTENT Aging rental
housing stock
supplemented by
an unstable
investor condo
rental market
Shortage of rental
housing that
families can afford
Investors skeptical
of long term gov’t
policy regimes
THE RESULT GOVERNMENT
ACTION OVER TIME
INTRODUCED RENT
CONTROL REGIMES
DIRECT INVESTMENT &
MANAGEMENT OF
BRICKS AND MORTER
CREATED A
PATCHWORK OF
POLICIES AND RULES
WHICH NEGATIVELY
AFFECT THE INDUSTRY
7
Building More Rental Housing Creates Affordable Housing Building More Rental Housing
Creates Affordable Housing Building More Rental Housing
Creates Affordable Housing Building More Rental Housing
Creates Affordable Housing Building More Rental Housing
Creates Affordable Housing Building More Rental Housing
Creates Affordable Housing
Housing that families can afford
Portable housing benefits—maximum
customer choice, minimal overhead,
immediate impact once implemented
Inclusionary zoning—Will only further discourage new development, will cost more than it will bring in benefits, not supported by evidence from other jurisdictions
Municipal licensing—Does not improve
quality, increases costs to tenants, does not
deal with enforcement against bad operators
Create a stable business policy
climate—policy change shocks or the fear of
negative changes diverts capital investment
elsewhere
Building more
rental housing
creates affordable
housing
The cost of new
housing is driven
by input costs, not
by family incomes
