DCCs are fees collected from land developers to help fund the cost of new City infrastructure. Provincal lwamakers need to amend the legislation to allow municipalities to change the collection times of DCCs.

Delta council last week agreed to have staff conduct a financial analysis on delaying collection of all development cost charges (DCC) to time of issuance of occupancy permits instead of at time of a subdivision application or issuance of a building permit, depending on the land use category.

A motion put forward by Mayor George Harvie notes residential and commercial development activity has significantly stalled because of increases in prices for building materials, skilled labour, higher financing costs and scheduled increases to the City of Delta, Metro Vancouver and TransLink DCCs.

It also asks Housing Minister Ravi Kahlon to consider amendments to applicable legislation to allow local governments to consider changing the time for collections.

Harvie said the change is needed throughout the region to assist the development community to start building.

“What I’ve heard back from the development community is that this would be a game-changer for them, and at the same time not be a financial impact to the city,” he said.

Harvie added the change would not be any kind of subsidy but simply a change in process which would result in reducing “considerable impacts” having to borrow for DCCs before projects can get going.

Council last year approved increased Delta’s DCCs after a lengthy review to reflect new growth projections, development-driven infrastructure projects and current-day construction costs. The previous update was approved in 2017.

Meanwhile, Metro Vancouver is undertaking a review of its DCC program, looking into several areas.

The review is to include collaborating with the development industry, member jurisdictions and the province to explore options to mitigate any potential impacts of the DCC program on residential development, such as extended in-stream protection and the timing of DCC collection.

Source: Sandor Gyarmati Delta Optimist

Photo: Sandor Gyarmati

VANCOUVER — Greater Vancouver Realtors says home sales in the region jumped 31.9 per cent in October compared with the same month last year, marking potential early signs of a long-awaited rebound after the Bank of Canada's four consecutive cuts to its key interest rate.

The real estate board says there were 2,632 sales of existing residential homes last month, which is just 5.5 per cent below the 10-year average after months of tracking approximately twenty per cent below those trends.

It says there were 5,452 newly listed properties, up 16.9 per cent from last year and 20 per cent above the 10-year seasonal average.

The total number of listings stood at 14,477. That's 26.2 per cent above the 10-year seasonal average.

The board's director of economics and data analytics, Andrew Lis, says it was "only a matter of time until signs of renewed strength in demand showed up," as the October sales figures suggest buyers who have been waiting on the sidelines may finally be responding to lower borrowing costs.

The composite benchmark price sat at $1,172,200, down 1.9 per cent from October 2023 and 0.6 per cent from September.

This report by The Canadian Press was first published Nov. 4, 2024.

The Canadian Press

The Lower Mainland's housing market often overlooks a significant demographic: families. 

While there's a growing trend toward compact living and urban density, the demand for larger units that cater to families' needs remains largely unmet. This oversight not only limits housing options but also represents a substantial missed business opportunity for private sector developers, especially in today’s market.

Families, especially those with children, require more than just a one or two-bedroom apartment.

A three-bedroom unit, like the one in which I reside, offers the necessary space without the excess that comes with a standalone house. It's about meeting the needs of families in terms of bedroom count rather than sheer size.

Not to mention that other needs could be offered as part of the building, and not necessarily in the unit, like a mud room, or stroller parking. This approach not only accommodates larger households, but also fits within the urban fabric, promoting density without sacrificing livability.

Urban living advantages: Terrace vs. backyard

One of the misconceptions developers have is the belief that families won’t give up on the traditional backyard.

In reality, amenities like a terrace or communal outdoor spaces can serve as excellent substitutes. These areas provide opportunities for spending time together as a family, just like a backyard without land inefficiency.

Furthermore, common outdoor amenities facilitate neighbour interactions, strengthening the sense of community. My own experience highlights how such amenities can enrich the urban living experience, offering a balance of privacy and social engagement.

The market potential ignored

This generation (“Millennials”) values efficiency, proximity, and convenience — qualities offered by urban living, but often lacking in the suburbs.

Unlike our parents, who were willing to spend significant time commuting, today's families seek homes that minimize travel time and maximize the quality of life. Living in the city means being closer to work, schools, amenities and social activities, reducing the need for long commutes and enhancing daily efficiency.

Developers often underestimate the market potential of larger units for families. There's a prevailing assumption that only investors can afford pre-construction purchases, leading developers to focus on smaller, more affordable units.

This oversight not only narrows their customer base, but also drives families toward suburban living where larger homes are more readily available, simply because not enough is offered in more urban, central locations.

Market adjustments: The lessons from Uber and Airbnb

Comparing the housing market to other industries, such as Uber and Airbnb, reveals significant market adjustments that have led to their success.

Uber had to convince us that it is safe to get into a car with a complete stranger. Airbnb taught that exact same thing about hosting strangers and staying over at a complete stranger’s home.

Similarly, developers have the opportunity to innovate by recognizing the demand for larger family units within urban environments, and educating their market about the advantages of such a purchase.

To capitalize on this overlooked market, developers must reassess their approach to who their buyers are today. 

The perfect Blue Ocean Strategy

As discussed in the book Blue Ocean Strategy, successful business strategies often involve envisioning what will be taken for granted in the future, but does not exist now, and working towards that vision.

Apartments designed specifically for families fit this criterion perfectly. By recognizing and addressing this gap in the market, developers can not only drive financial success but also significantly contribute to the livability and inclusivity of our cities.

Those who take the lead in this emerging market will address one of the Lower Mainlands greatest opportunities.

Source: Naama Blonder Architect, Urban Designer, Urban Planner | B.Arch, OAA, RPP, MCIP

As expected, the Bank of Canada held its overnight rate at 5 per cent this morning. In the statement accompanying the decision, the Bank noted that economic growth stalled through the middle quarters of 2023 and that slowdown in growth is expected to extend into the fourth quarter. As a result, inflationary pressure is easing, though the Bank stated that it is still concerned about risks to the outlook for inflation and wants to see a sustained easing of core inflation in future months.

Given the evidence of a slowing economy and some long-awaited downward momentum in core inflation, it appears likely that the Bank of Canada’s rate-tightening cycle is at an end.  If so, the conversation around Bank of Canada meetings in 2024 will shift toward when the Bank might lower rates and how fast. Given that the Bank’s estimate for its neutral rate is between 2 and 3 per cent, we can expect between 200 and 300 basis points of rate cuts once it is clear that inflation is returning to its 2 per cent target. 

After hitting a 15-year high this fall, Canadian bond yields have been tumbling to finish the year as financial markets process meaningful progress on reducing inflation and the projected end of central bank rate hikes. The five-year Government of Canada bond yield has trended near 3.5 per cent over the last week and if that trend sustains, we will see a meaningful decline in fixed mortgage rates to start 2024.

Our forecast is for the average 5-year fixed mortgage rate to fall to about 5 per cent by the end of 2024, while variable rates will begin falling as the Bank of Canada lowers its overnight rate starting in the first or second quarter of next year.