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Uzelman: Housing affordability- Kelownasa国际传媒檚 OCP sharply restricts land and housing supply

A column by Bruce Uzelman
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~BW Uzelman

Part 2

Kelownasa国际传媒檚 Official Community Plan (OCP) attempts to direct growth to urban neighborhoods and away from suburban neighborhoods. The plan states that the low population densities of suburbs make transit service difficult and the maintenance of infrastructure costly. One of the sa国际传媒淧illarssa国际传媒 of the OCP is to, sa国际传媒淪top planning new suburban neighborhoods.sa国际传媒 This seems extreme in a growing city.

Another Pillar is to, sa国际传媒淔ocus investment in Urban Centressa国际传媒 to limit urban sprawl. The OCP identifies five Urban Centres sa国际传媒 Downtown, Pandosy, Capri Landmark, Midtown and Rutland. The plan specifies, sa国际传媒淯rban Centres should support a greater intensity of employment (in retail, office, restaurants, etc.) and residential density to ensure they become Kelownasa国际传媒檚 primary hubs of activity.sa国际传媒 The OCP envisions the Urban Centres offering schools and parks and a variety of transportation.

The plan reads, sa国际传媒渢he OCP focuses on slowing the outward growth of Suburban Neighborhoods using a Permanent Growth Boundary, beyond which urban growth is not supported.sa国际传媒 In short, the boundary is a barrier to development. The boundary will constrain the supply of residential land. Lot prices in Kelowna already start at $300,000-$400,000 and range to $1 million, and home prices reflect that.

The Agricultural Land Reserve (ALR) since the 1970sa国际传媒檚 has vastly reduced the land available for residential use in many cities in BC, including Kelowna. It was introduced by the provincial government to preserve agricultural land use. In 2015, the ALR occupied fully 40% of Kelownasa国际传媒檚 land area. Now, as well, the Permanent Growth Boundary tightly encircles existing neighborhoods, and new suburban neighborhoods are prohibited. These urban containment policies can only further reduce the numbers of residential lots available and further drive up lot and home prices.

In sa国际传媒淩ethinking Urban Sprawlsa国际传媒, the OECD writes, sa国际传媒淧olicy action needs to focus on promoting socially desirable levels of population density and fragmentation sa国际传媒.sa国际传媒 The OECD examines the negative impacts of urban sprawl, but also cautions against severe reactions to it. It surveys some moderate policy approaches, including the easing of stringent maximum density regulations, the adjustment of stringent urban containment policies and the reform of property taxation to foster infill development.

Wendell Cox is principal for Demographia, a company which rates housing affordability in 94 markets in eight countries with the use of a house price-to-income ratio. The countries include Canada, the US, the UK, Australia and China. Demographiasa国际传媒檚 2023 report reveals that the three most unaffordable markets in 2022 were Hong Kong at a score of 18.8, Sydney, Australia at 13.3 and Vancouver at 12.0. Any score over 5.0 is classified as sa国际传媒渆xtremely unaffordablesa国际传媒. In BC, Victoria and Kelowna, at 9.8 and 9.3, were only moderately less unaffordable than Vancouver. All are very far from an sa国际传媒渁ffordablesa国际传媒 score of 3.0 or below.

Cox writes, sa国际传媒淚n a well-functioning market, the median priced houses should be affordable to middle-income households, as they were in virtually all markets before the inception of more restrictive land use polices, especially urban containment.sa国际传媒 Cox believes unaffordable housing threatens the middle class. In sa国际传媒淯nder Pressure: The squeezed middle classsa国际传媒, OECD data supports that view, sa国际传媒渉ouse prices [in the OECD] have been growing three times faster than household median income over the last two decades.sa国际传媒

Kelownasa国际传媒檚 OCP presents a vision for a new kind of city. Some of it sounds wonderful. The plan seeks to develop five vibrant, verdant, multi-use Urban Centres. Three more Pillars, to protect the environment, limit climate change and boost agriculture, in isolation, are commendable. These sa国际传媒済reensa国际传媒 Pillars, however, clearly inspire the Pillar to eliminate new suburbs and impose the Permanent Growth Boundary. Here, the OCP loses its way. The green pillars must be balanced against affordable housing. In the blind pursuit of the former, there is no doubt, we are deprived of the latter.

As suburban growth across the continent demonstrates, many people value space and privacy and separation from urban crime. Many parents do not want to raise their children in a dense urban environment, and some couples and individuals who work in an Urban Centre do not want to live there. But, for numerous residents, there is no choice because the ALR and the OCP will continue to drive up land and housing costs everywhere, but particularly in the suburbs.

The third reading of the OCP was granted by a unanimous vote of Council. If Council allows the plan to direct all future planning and land use decisions, our standard of living will continue to deteriorate.

Part 1- Uzelman: Housing affordability- Immigration needs to be coordinated with housing supply

bruce

Bruce W Uzelman

I grew up in Paradise Hill, a village in Northwestern Saskatchewan. I come from a large family. My parents instilled good values, but yet afforded us, my seven siblings and I, much freedom to do the things we wished to do. I spent my early years exploring the hills and forests and fields surrounding the village, a great way to come of age.

I attended the University of Saskatchewan in Saskatoon. I considered studying journalism at one point, but did not ultimately pursue that. However, I obtained a Bachelor of Arts, Advanced with majors in Economics and Political Science in 1982.

Contact: urbangeneral@shaw.ca

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