The prospect of home ownership for younger Canadians has a direct connection to their ability to tap into the "bank of mom and dad," Statistics Canada stated in a report released today on Intergenerational Housing Outcomes in Canada. The report said that expensive urban markets such as Victoria, Vancouver and Toronto had a higher proportion of "co-signed" mortgages involving people born in the 1990s and their parents.
"Parents' housing wealth was associated with higher property values for their children, especially in Toronto, Kelowna, Vancouver and Victoria. In these cities, children whose parents were at the top of the housing wealth distribution owned properties that were on average 29.6% to 37.4% more valuable than properties owned by people whose parents were at the bottom of the housing wealth distribution," Statistics Canada said. "These results suggest that parental property ownership affects not only children's ability to access home ownership as adults, but also the value of the properties they own and, therefore, their ability to build up greater home equity and financial assets." It's been the hot-button topic for so long, it's easy to forget just how much inflation has forever changed the cost of household budgeting.
An online tool can help track exactly how much individual goods have changed in price. The Average Retail Food Prices Data Visualization Tool is helpful to show the price increase or decrease for 105 typical grocery items. For example, the cost for one kilogram of chicken breast in BC was $18.18 in March compared to $16.71 a year earlier. Meanwhile, a 454 gram block of butter was $6.08 in March — down from $6.45 in the same month in 2023. In BC, the item that saw the largest increase in price over the last year is infant formula, which is up 24% year over year. It's not everyday that your breakfast conversation includes a candid discussion with BC's Premier about the major challenges facing business in Greater Victoria.
That was the experience yesterday for 300 people at the Victoria Conference Centre as they were able to nourish their bodies while feeding their minds. After speaking about the government's plans to support the private sector and grow BC's economy, Premier David Eby engaged in a lively discussion with Chamber CEO Bruce Williams about topics submitted by Chamber members. Community safety is top of mind for many people, and the Premier acknowledged the province is trying to find a solution for challenges facing governments around the world. The recent move to ban drug use in public spaces is an example of how government reversed course on a policy that wasn't working as intended. The long-term solution is complex, with Eby noting that a continuum of care is required for people experiencing homelessness rooted in mental health or addiction. Other topics included the province's plan to avoid disruptions to ferry sailings this summer — something that happened with alarming frequency last year — and how the province can reduce obstacles for builders so that they can increase housing supply. "The morning flew by and we could have easily kept talking all day," Chamber CEO Bruce Williams said. "I'm grateful for the Premier's time and for everyone who chose to enjoy breakfast with us. We'll keep the dialogue going between business and government and work together to find innovative solutions to the challenges facing our community." It's an election year in BC and The Chamber is working to provide opportunities for the province's main political parties to speak with the Greater Victoria business community. On Tuesday, Premier David Eby, leader of the BC NDP, spoke at a breakfast hosted by The Chamber for 300 community leaders.
On June 6, The Chamber hosts the leader of the Official Opposition, Kevin Falcon. Details about the event will be available soon. Falcon leads the BC United Party, which was formerly known as the BC Liberal Party though they represented the conservative side of the political spectrum. "The Chamber is non-partisan but we have a long history of supporting democracy," Chamber CEO Bruce Williams said. "We know BC politics can seem divisive and even confusing, but we believe hearing directly from those who seek to represent us is the best way to help voters understand what candidates stand for." Watch for more details about upcoming events ahead of the provincial election in October. The Short-Term Rental Accommodations Act took effect today. Among the changes, according to the province, are:
If the new rules aren't followed, fines can be levied ranging from $500 to $10,000 per day, depending on who is operating the rental. BC Minister of Housing Ravi Kahlon told the Times Colonist that short-term rentals will be available on a smaller scale as the new rules aim to stop people from taking away large numbers of housing units that could serve as homes for people. On Tuesday, the provincial government released the next round of municipalities facing scrutiny to ensure they are helping increase BC's housing supply.
The next 20 priority municipalities include the following in Greater Victoria:
The first list, released last spring, included the City of Victoria, the District of Saanich and the District of Oak Bay. Each community receives a target number of total units that are expected to be built within a specific time-frame. The targets for the latest communities will be made public this summer. "The Chamber supports efforts to increase housing supply and we continue to advocate for all levels of government to smooth the process for builders so the construction work needed can be done," Chamber CEO Bruce Williams said. "I'm looking forward to speaking with Premier Eby next week at the Chamber breakfast to hear firsthand how the province is advocating for support from the federal government." The Chamber hosts Premier Eby on April 30. Register now to reserve your seat at the table. Talk is turning to action on the latest attempt to pursue municipal amalgamation. Invitations to serve on the Victoria-Saanich Citizens' Assembly have been sent to 10,000 residents in the two communities. They have until May 30 to confirm whether they will participate.
From there, 48 people will be selected through a randomized lottery process that fairly represents the population of both municipalities. Finally, the committee will come together over eight Saturdays starting in September and wrapping up in April. At that point, they will produce a report outlining the pros and cons of merging Greater Victoria's two largest municipalities. This month, The Chamber's Inclusion, Diversity and Equity Advancement (IDEA) Committee heard from Lifetime Networks, which supports 350 individuals with intellectual disabilities and their families.
Typically, people with intellectual disabilities often have many paid individuals in their lives, including doctors, therapists, specialists and support workers. Sadly, there are often a lack of friends. Making friends can be challenging for everyone. The challenge increases with the addition of barriers such as mobility issues, communication issues, physical differences—in fact, any perceived differences. One of the services Lifetime Networks offers is the facilitation of friendships. Friendships are integral to leading to a rich and rewarding life. The Chamber invites all members to support the work of Lifetime Networks to "friend raise" and continue making a difference in the lives of many. A new hub close to the "heart of Saanich" was given a key stamp of approval on Monday.
The District of Saanich has an extensive plan for the Uptown-Douglas area, which is at the crossroads of Greater Victoria's core municipalities. The area will be zoned to shape new development designed to grow the neighbourhood as a major hub north of downtown Victoria and between the West Shore and Saanich Peninsula. The plan includes turning Oak Street into a vibrant commercial district that creates a walkable boulevard between Uptown Mall and Mayfair Shopping Centre. The City of Victoria is updating its Official Community Plan this year. The province requires all BC municipalities to update their OCP every five years with a vision for the next 20 years. Victoria — facing a changing climate, growing population and a profound shortage of housing — is looking for input from the public and business community to help shape the next plan.
"Decisions on where housing, businesses and parks should go, how we move around the city and ways Victoria can respond to the climate crisis are all determined by the OCP," states the city's website. "If the City was a train, the OCP would be its conductor leading the way." Community engagement will continue until September and plans currently include an open house, a survey, pop-up events in the city and an online information session. Learn more at engage.victoria.ca/ocp. As part of the plan for transforming the Uptown corridor, the province is proposing changes to Ravine Way to accommodate new bus stops and expanded trails in the area.
An information session is scheduled for May 1, from 3-7 pm at Cedar Hill Golf Course, to review design concepts, get feedback and discuss how to improve the area for people travelling by bus, foot, bicycle, wheelchair or scooter. More spending and more taxes have many business groups concerned about the future after the federal government released its ambitious 2024 Budget yesterday.
"Canada must end the cycle of tax and spend politics," Canadian Chamber of Commerce Senior Director of Fiscal and Financial Services Policy Jessica Brandon-Jepp said. "Fueling economic growth is the key to improving quality of life and affordability for Canadians." The national chamber network opposes any measure that increases costs for businesses currently experiencing economic headwinds. We also will work with our members to understand how the increase to capital gains tax will impact business. "(The) budget contains few surprises. Most of the major new spending was announced by the government over the last few weeks, and the government’s projections for the deficit are largely in line with previous predictions," Canadian Chamber CEO Perrin Beatty said. "Our lagging productivity and stalled GDP growth means Canadians are becoming collectively poorer and working harder to just remain where they are today." New taxes will cover about $18 billion with about $57 billion in added spending:
Another successful AGM is nothing new for your 161-year-old Chamber, but the expert panel convened for yesterday's meeting could not have been more topical.
"Safe communities is a long-standing advocacy priority for us, and we know there is no simple solution," Chamber CEO Bruce Williams said. "A true fix requires a collaborative approach, though as we learned yesterday there are things we can do to improve symptoms while we work on more permanent solutions." After a series of reports of violent incidents in media, Chamber members had many questions about policing, mental health support and housing services. The need for more homes for all income levels is clear, as is a requirement for adequate health care and addiction treatment professionals. Those solutions will take time, even as the political will grows to invest in foundational change. While mistakes have been made, including in the early days of the pandemic when screening for supporting housing wasn't as closely monitored as it is now, progress is being made. The Chamber is working on policy issues such as legal reforms to keep repeat offenders off the street, and police are partnering with health authorities to enforce laws while assisting people in distress. "We can't ignore these issues facing the business community, but we also have a responsibility to not sensationalize them," Williams said. "Going Downtown is safe and our region really is one of the best cities in the world. That said, as with any city, if you don't feel safe, stay away from the few spots that are troubled, stay informed about what governments are doing and let's all be part of positive change." The slight increase to inflation reported yesterday is not outside the range that could jeopardize an anticipated interest rate cut in June.
Statistics Canada reported yesterday that the Consumer Price Index rose to 2.9% in March — up from 2.8% in February. Gas prices were the biggest reason for the rise. Without those fuel costs, March's inflation actually slowed from the previous month. "Many inflation indicators are trending in the right direction and interest rate cuts are still on the table for the Bank of Canada’s interest rate announcement in June," the Conference Board of Canada stated, adding that getting to 2% inflation target could take awhile. Many employers are forecasting wage growth and consumers still see prices rising in the months ahead. "While there is still one more CPI release to come before the Bank's next policy decision, (yesterday's) data keeps us on track to see a first rate cut at that June meeting," CIBC Executive Director of Economics Andrew Grantham said. A new waterfront neighbourhood has been proposed for the area around the Capital Iron District. In an article in the Times Colonist, Reliance Properties CEO Jon Stovell said its plan for an arts and innovation district will go before City of Victoria council on April 18.
The proposal includes preservation of heritage buildings along Store Street and 12 new buildings over two city blocks adjacent to the Upper Harbour. The area known as the Capital Iron lands is bordered by Chatham, Discovery and Government streets. If the proposal is approved, the area will be home to 500 new housing units and provide working space for 1,800 people. It will also serve as a new home for the Art Gallery of Greater Victoria. What would you do to make Victoria feel safer? Have your say by participating in the City of Victoria's Community Safety and Wellbeing Plan
“This public engagement will help us understand people’s thoughts, feelings, perceptions and opinions about wellbeing and safety, and encourage them to share their ideas on possible solutions,” Victoria Mayor Marianne Alto said in a news release. “Our Community Safety and Wellbeing Plan will include strategies to enhance the quality of life for our community — residents housed and unhoused, businesses, non-profits, workers of all kinds — to create a community that is safe and inclusive for everyone. The Plan will tackle a range of social issues, embracing an array of solutions.” The survey is available online until May 12. A draft of recommended actions will go to City Council in September. Using available land on military bases for direly needed homes for military personnel can help solve Canada's housing crunch.
The Chamber is currently crafting a policy resolution on this solution for our national network to take to the federal government. This week, we heard good news from the feds. The defence policy update titled Our North, Strong and Free includes almost $300 million for Canadian Armed Forces Housing over 20 years. "Chamber members tell us one of the biggest hurdles for finding and keeping workers is the cost of housing in Greater Victoria," Chamber CEO Bruce Williams said. "We have thousands of Armed Forces personnel in our region, and providing more, quality housing on CFB Esquimalt land will free up homes off base for other workers." The update announced a total of $8.1 billion over five years and $73 billion over the next two decades to bring Canada closer to its NATO commitment. A longstanding concern has been addressed by proposed changes to the Police Act. Under the current rules, the chair of the local police board is automatically the person serving as mayor of the local municipality. That can create an appearance of conflict as councils must approve budgets recommended by the police board.
The new rule will allow local governments to determine who their representative will be on their police board and will allow members of the police board to elect their chair and vice-chair. "This is an important update as it will remove politics from the important decisions around ensuring police are adequately funded," Chamber CEO Bruce Williams said. "Having appropriate resources is fundamental for police so they can continue to keep our communities safe." The District of Saanich's plan for the area around Uptown received a boost on Monday as the province announced it has secured land for a new transit-oriented development.
“Our communities are growing quickly, and people need affordable homes close to public transit, so they can get to where they need to go – and get ahead in life,” said BC Premier David Eby, who will be speaking to Chamber members on April 30. “This new development in Saanich will create a vibrant, connected community where people can find everything they need at their doorstep.” The land was bought by the BC Ministry of Transportation and Infrastructure’s $394-million property acquisition fund. Early plans for the area in Saanich include hundreds of new homes, public spaces and active-transportation connections. There will also be new retail and commercial spaces. Other suggested services include child care, community health and educational facilities. The development will integrate the Lochside and Galloping Goose regional trails to make it a hub for active transportation and BC Transit services, with connections to downtown Victoria, the University of Victoria, the Westshore and the Saanich Peninsula. “The Uptown-Douglas area is the perfect location for a high-density, transit-oriented development and regional transit hub that will no doubt be transformative for this community," Saanich Mayor Dean Murdock said in the news release. Luke Mari, principal of Aryze Developments commented on the announcement, saying “The best transportation plan is a land-use plan. When we put the right homes in the right places – near existing services amenities and transit – we can reduce our dependence on private car use.” Hurry up and wait. That seems to be the message from the Bank of Canada today, after it held its target for the overnight rate at 5%. The Bank's Governing Council would like to see evidence that inflation will continue to trend down before announcing cuts. Optimism remains that there will be enough evidence by the time the Bank makes its next rate announcement on June 5.
"We currently forecast a first interest rate cut in June," CIBC Executive Director of Economics Andrew Grantham said in a media release. "To steal a line from (Bank of Canada) Governor Tiff Macklem's press conference today, that outlook still appears to be within the realm of possibility." The provincial government received another slap for its spending habits from the world's largest credit rating agency.
On April 8, S&P Global Ratings downgraded BC from AA to AA-minus, the third drop in a row from the firm. Shortly after, Moody's Investors Service also lowered its rating of the province. The downgrades increase debt servicing costs for the province, taking away from funds that could otherwise go to infrastructure or other services. The S&P report said it could lower the rating further unless a better plan to manage provincial deficits emerges. "We believe that the province's commitment to fiscal discipline and stability has wavered in recent years as BC has materially increased its spending for both operations and capital investment to unparalleled levels, while economic growth is slowing," the report said, offering some positive feedback as well. "Overall, BC's financial planning practices are well aligned with those of domestic peers and are transparent." BC Premier David Eby and Housing Minister Ravi Kahlon announced new rules yesterday to give landlords and renters more certainty regarding tenancy agreements. The proposed amendments to the Residential Tenancy Act will increase flexibility and provide clearer guidelines for issuing evictions.
“While most landlords and tenants play by the rules and have respectful relationships, too many people in BC are still facing unfair rent hikes and evictions under false pretenses,” Eby said in the media release. “At the same time, many people who have chosen to rent part of their home are struggling to end problematic tenancies.” Under the new rules, rent increases will be restricted when a family adds a child under 19 to the household. Landlords also will need to give tenants a longer notice before taking over a unit for personal occupancy. "The Chamber supports policies to increase the supply of stable housing," Chamber CEO Bruce Williams said. "This requires a balance between protecting renters and making sure the rules aren't so onerous they prevent potential landlords from renting out available units." Williams said housing will be a major topic of discussion when The Chamber hosts Premier Eby on April 30. Register now to reserve your seat at the table. Leading to Election - Breakfast with Premier David Eby
The jump at the pumps was no April Fool's prank as the tax on gasoline increased on April 1 to $0.17 cents per litre from $0.14 per litre.
BC has had a carbon tax since 2008. The provincial tax is separate from the federal tax implemented in many other provinces. As such, the rebates available to Canadians in those provinces are not the same as those offered here. In BC, carbon tax rebates are income tested and only available to those earning less than $61,465 per year. "The Chamber supports climate action leadership, and the idea of a carbon tax has its merits," Chamber CEO Bruce Williams said. "What needs further examination is how the revenue from this tax is being used. We know innovation led by business is key to finding climate change solutions and that requires reducing the burden on the private sector." The Bank of Canada released its Business Outlook Survey as well as its Survey of Consumer Expectations this week.
The findings show that business conditions have improved in the first quarter of 2024. It's the first positive change in almost two years. The survey also found that fewer Canadian businesses are planning for a recession this year. There was more good news as labour constraints and supply chain challenges are less of a problem. However, businesses reported facing new burdens from taxes and red tape. Consumers said inflation and interest rates are affecting their household budgets, though there was less pessimism about the future of the economy and job prospects. Greater Victoria's real estate industry appears to be back in season.
"We have more inventory for consumers to consider when compared with recent years. This additional inventory improves both buyer and seller confidence as it means people have more options and more reassurance that they are going to be able to find their new home," Victoria Real Estate Board Chair Laurie Lidstone said in a media release. "As people buy and move, more properties are added to the available inventory, which supports a much healthier market. Supply really is key, and looking to the future we need to ensure that focus continues on the creation of new homes of all types and price points." VREB reported 2,647 active listings at the end of March 2024 — up 12% from February and 34.4% March 2023. In the core area of our region, the benchmark value for a single family home in March 2024 was $1,279,300, up from February's value of $1,247,400. The benchmark value for a condominium in March 2024 was $567,300, up from $557,000 in February. |
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