‘Missing middle’ zoning: Addressing housing affordability or hampering development?
In the fall of 2023, with a stroke of the legislative pen, British Columbia’s government rezoned most single-family neighbourhoods in the province to permit 3 to 6 units per lot. Policy move to address ‘missing middle’ It’s an ambitious and sweeping policy move, intended to increase the housing supply and address the “missing middle” of the housing continuum — that gap between increasingly unaffordable single-family homes and small condominiums. Municipalities have until June 30, 2024 to align their bylaws with this provincial legislation. The multiplex trend and restrictive land-use policies In recent years, Vancouver and Victoria had already approved broad-swath rezonings to enable “multiplex” (duplex, triplex, etc.) development in single-family areas. This multiplex trend is not isolated to Western Canada, with municipal and regional governments across North America passing similar laws, including Toronto, Minneapolis, California and Oregon.A 2023 report from the Canadian Mortgage Housing Corporation (CMHC) highlighted restrictive land-use policies as a contributing factor to elevated shelter costs in general, and in Vancouver and Toronto (Canada’s two most expensive housing markets) in particular. In this context, “blanket” upzonings can give builders a legible pathway to creating more residential density in undersupplied areas. The planning rationale: An example To help us understand the financial and urban planning rationale behind “missing middle” zoning, let’s review a representative example of an 11,000 square foot (sf) lot in Vancouver, currently improved with an aging 4,000 sf home.Vancouver’s multiplex zoning permits a floor-space ratio (FSR) of 1, meaning you can build 11,000 sf on this lot, or six units of just over 1,800 sf each. Now we have six homes instead of one, some or all of them suitable for a young family, nestled on a tree-lined street.In a major metro region like Toronto or Vancouver, these homes wouldn’t be cheap, but they would be materially more affordable than a new single-family home in the same neighbourhood. Even factoring in today’s elevated construction and financing costs, this sample project is, most likely, viable. It can get built. Several fees apply However, in our example, in addition to the typical slew of government fees (including Development Cost Levies, or DCLs, which contribute to infrastructure upgrades), the builder would have to pay a density charge to the municipal government of over $460,000 (or $76,000+ per unit). The purchaser would also have to pay GST to the federal government on the finished home. The quantum of GST would vary with the purchase price, but in this case would likely exceed $100,000 per unit.Multiplex projects also incur other fees over and above what would be required to construct a single-family home on the same parcel, including development permit fees. These extractions make “missing-middle” projects both less feasible for the builder and more costly for the end-user. The broader issue This relates to the broader issue, explored in an earlier article, of the costs and restrictions imposed by various levels of government on the supply of housing. Given the numbers cited above, government charges are likely a contributing factor (along with design constraints) to why there have generally been relatively few projects initiated under multiplex zoning provisions. How ‘missing middle’ policy has played out According to housing journalist Uytae Lee, in the first 11 months after California’s enabling legislation came into effect, there were just over 280 “missing middle” permit applications submitted – in a state with a population of some 39 million people. Closer to home, in Victoria, B.C., there were merely three applications in the first six months after the introduction of multiplex zoning. One building, cited in a Postmedia report, indicated that the Victoria policy’s design parameters (including setbacks and height) created “unbuildable conditions” for multiplex projects. (It should be noted that the low uptake prompted Victoria’s city council to drastically revise its “missing middle” program last September.)And while it’s too soon to judge the efficacy of Vancouver’s policy (which came out last fall), in the context of already elevated construction and financing costs, it’s fair to say that project feasibility and unit affordability are not enhanced by the taxes and charges outlined above. We have to decide what we want. Since it’s clear that we have a chronic under-supply of housing, we should remove unnecessary design barriers and reduce government fees and charges, starting with those that are extraneous to the infrastructure enhancements required by increased housing density. Otherwise, bureaucratic extractions and constraints will continue to impede much-needed supply in the middle rungs of the housing ladder. Enjoying this article?Get the latest REM articles in your inbox 3x week so you stay up to date on the latest in the Canadian real estate industry Success! Email Subscribe The post ‘Missing middle’ zoning: Addressing housing affordability or hampering development? first appeared on REM.The post ‘Missing middle’ zoning: Addressing housing affordability or hampering development? appeared first on REM.
Canada's Inflation Landscape: A Glimpse into the Present and Future
In a recent turn of events, Canada's inflation rate has showcased a significant decline, touching a 27-month low of 2.8% in June, primarily propelled by diminishing energy costs. This development, exceeding analysts' projections of a descent to 3.0% from May's 3.4%, marks a crucial juncture in the nation's economic narrative. This downward trend ushers the annual rate within the Bank of Canada's target range of 1% to 3% for the first time since March 2021, heralding what many might interpret as a positive shift towards the bank's 2% inflation target. However, beneath the surface of this headline figure, the landscape is far more nuanced. Core inflation measures, which strip out volatile components such as food and energy, present a different story. With grocery prices soaring by 9.1% year-over-year in June and shelter costs incrementing, underlying price pressures persist, revealing the sticky nature of inflation that remains a concern for policymakers and households alike. The Bank of Canada's stance in this context is notably aggressive, with a series of interest rate hikes bringing the rates to a 22-year apex of 5.0%. This rigorous approach is driven by a determination to anchor inflation expectations firmly, despite the economic discomfort it may induce, including potential job losses and the financial strain on homeowners with variable-rate mortgages or those facing mortgage renewals. The Central Bank's Predicament: The Bank of Canada finds itself navigating a precarious balance between stifling inflation and mitigating the risk of economic downturns. With core inflation measures remaining stubbornly high, the path to achieving a 2% inflation rate appears fraught with challenges. The central bank's preferred measures of core inflation, such as CPI-median and CPI-trim, indicate that despite the overall reduction, inflation's underlying pressures are not easing as much as one would hope. This scenario underscores a broader global challenge central banks face: managing inflation without derailing economic growth. Canada's approach, favoring preemptive rate hikes, reflects a bias towards combating inflation over risking a recession. This is predicated on the belief that central banks possess more tools and experience in navigating recessions than in curtailing entrenched inflation. Please provide the specific contents that you would like me to rewrite in quotes.. Looking Ahead: As Canada marches forward, the dichotomy between the headline inflation rate and core inflation measures suggests a complex road ahead. The Bank of Canada's vigilant stance, coupled with its readiness to adjust monetary policy as necessary, underscores the uncertainties enveloping the economic forecast. This unfolding scenario raises important questions about the future trajectory of Canada's economy. Will the central bank's measures temper inflation's persistence without exacting too heavy a toll on economic growth and societal well-being? Only time will reveal the efficacy of these strategies in steering Canada through these turbulent economic waters. In the meantime, Canadian businesses, especially in the food retail sector, are urged to adopt responsible pricing strategies to support the economy and alleviate the cost-of-living pressures on consumers. The collective effort of policymakers, businesses, and the public will be crucial in navigating the challenges ahead, aiming for a balanced and sustainable economic future. The evolution of Canada's inflation and the Bank of Canada's responses offer a compelling case study on the complexities of modern monetary policy and its far-reaching impacts on an economy. As we watch these developments unfold, it becomes clear that the journey to economic stability is seldom linear, fraught with both challenges and opportunities for innovation in policy-making.
Luxurious 2-Storey Penthouse in Markham: A Haven of Urban Luxury Living
Are you in search of a luxurious urban living experience? Look no further than the stunning 2-storey penthouse located at 9500 Markham Rd #Uph6, Markham, ON L6E 0N6. With a listing price of $1,000,000, this residence in Greenpark's Upper Village 1 offers an exquisite lifestyle that redefines urban luxury living. One of the most enticing features of this penthouse is its spectacular views. Imagine waking up every morning to breathtaking vistas of the city. The north-facing views from this penthouse are nothing short of awe-inspiring, providing a sense of serenity and tranquility. The residence boasts two spacious bedrooms and three beautifully appointed bathrooms. The primary bedroom is a haven of relaxation with its large floor-to-ceiling windows, allowing an abundance of natural light to fill the space. These windows offer a panoramic view of the surrounding cityscape, creating a sense of being on top of the world. As you step into this penthouse, you will be greeted by 9' ceilings, adding an air of grandeur and elegance to the space. The laminate flooring throughout the residence exudes a touch of sophistication, while the upgraded kitchen cabinets showcase the high-quality craftsmanship found in every corner of this home. In addition to the indoor living space, a large balcony beckons you to step outside and enjoy the fresh air. This outdoor oasis is perfect for relaxing, entertaining guests, or simply taking in the breathtaking views of the city below. This penthouse also offers the convenience of two parking spaces and a locker, ensuring ample storage for all your belongings. Furthermore, the building boasts a range of amenities that cater to your every need. With a 24-hour concierge, you can rest assured knowing that you are living in a safe and secure environment. The rooftop patio provides the perfect spot for enjoying the sunset or hosting gatherings with friends and family. A fully equipped gym allows you to maintain an active lifestyle while a spacious party room and lounge/study area offer versatile spaces for socializing or quiet reflection. Visitors' parking is also available for the convenience of your guests. Beyond the walls of this luxurious penthouse, you will find yourself in a prime location. Wismer Public School, Bur Oak Secondary School, and Brother Andre Catholic High School are all steps away, ensuring a top-notch education for your children. The proximity to Mount Joy GO Station makes commuting a breeze, while nearby shopping and restaurants cater to all your daily needs. Historic Main St. Markham adds charm and character to the neighborhood, offering an array of quaint shops and cafes to explore. Whether you are looking for a place to call home or an investment opportunity, this luxurious 2-storey penthouse in Markham is perfect for you. With its stunning views, exquisite upgrades, and prime location, it offers a lifestyle that is unparalleled in urban luxury living. Don't miss out on this rare opportunity to own a slice of heaven in Markham. Contact us today to schedule a viewing and experience the epitome of urban luxury living firsthand.Find Your Dream Penthouse. ✨🏠 #LuxuryLiving #PenthouseDreams #MarkhamMagic #TorontoRealEstate #MillionDollarListing #ElevateYourLifestyle #DreamHome #ExclusiveHomes #MarkhamHomes #UpperPenthouse #RealEstateGoals #OpulentLiving
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