As a leader in Canadian real estate, I advocate for communication. When we listen, connect, and find the truth in nuanced situations, we’re set up to make a real impact.
On the other hand—when confusion, lack of information, and poor communication are left to run the show, everyone ends up frustrated and progress is frozen.
That’s what we’re seeing right now in British Columbia. We’ve noticed that property trading is slowing to a trickle.
Let me be point blank. I believe that a key reason for this is: Confusion!
When stakeholders in land development are overwhelmed and unclear on what’s being expected of who, the result is stagnancy.
Changes to regulations can unlock an array of exciting new housing development possibilities. For example, thanks to new legislation, for the first time ever, transit-oriented sites are mandated to redevelop for high density housing.
On paper, this is an INCREDIBLE opportunity. And when we get our ducks in a row, it’s going to make a hugely positive impact on our cities and the housing crisis.
For now, the industry can become paralyzed.
When local governments are not clear on the infrastructure needed to support development (like development cost charges, amenity funds, and servicing costs), it puts land trading and development applications into gridlock.
People don’t want to transact or rezone property until they understand exactly what costs they could be on the hook for.
So, if we want development of housing in our cities, we need to support local governments to set fixed costs, including for amenities like community centres, parks and libraries.
Not easy. In Canada many local governments are suffering staffing shortages while also needing to update policies. I have the utmost respect and empathy for government staff tasked with sorting through these issues.
And yet—if we want to move the needle on the housing crisis, fixed costs are prudent.
For this reason, developers that want their file to advance need to be creative in proactively presenting ways they will pay their share.
What are you noticing about how uncertainty about infrastructure costs is impacting this? I’d love to hear your perspective.
As I’ve been saying —processes around approvals are about to get messier and more perplexing before they get better. We need to continue learning from global cities (which I’ll be talking about in future newsletters).
2024 will be a game-changing year… as everyone in the industry does its part to transform how we deliver housing.
Want a strategic partner to walk alongside you as you navigate rezoning, permitting, and approvals for your transit-oriented site? Complex projects like these are my specialty, and I’d be honored to leverage my expertise and professional network to support you.
Set up a 15-minute call to start the conversation.
To keeping our eye on what’s possible, even when the going gets tough,