There are two great passions for BCers that pervade the province and dominate conversations: hockey and housing. One of the main points of discussion is that both are way more expensive than they used to be, or should be. I don’t have great solutions for bringing down ticket prices at Canucks games, but I do see some hope on the horizon for making homeownership more affordable and accessible.
Last week, the Bank of Canada reduced its trend-setting policy rate to 4.25 per cent from 4.5 per cent. Most observers foresee more cuts coming soon as inflation eases, bringing borrowing costs down from their highest levels in nearly two decades.
This means that, by this time next year, mortgage rates could be as much as 1.50% lower than today. This will likely be a catalyst for many who have been putting off the move to purchase a home, particularly first-time buyers. For those who are barely able to afford a mortgage, lower monthly payments and less total interest mean everything.
Homeownership matters. Just like hockey brings a sense of shared regional pride, owning your own home creates an unmatched investment in where you live. Homeowners care more about making and maintaining an equitable and desirable community. They want to put down roots, raise kids, plant a garden, and make decisions for the greater good and the longer term. Homeownership makes a better society, and it should absolutely be a provincial priority to create more favourable conditions.
For 3 out of 4 Gen Z and Millennials, buying a home remains a top priority, but the barriers are significant. Affordability isn’t just a challenge for the individual buyer—it’s a societal issue that impacts everything from employment rates to mental health.
As an advocate of the shared equity model, I believe there are sustainable solutions to make housing more affordable while maintaining market stability. The shared equity model allows buyers to co-own a property with an investor, making the initial costs of homeownership more manageable. By expanding access to programs like these, British Columbia could unlock homeownership for thousands of people who might otherwise be priced out.
With the coming chain reaction of rate reductions, we have a rare opportunity to rethink housing policy to prioritize affordability, sustainability, and fairness. It’s a great time for politicians to make good on all the talk about reducing housing prices – by far the dominant topic of political debates and campaigns. We need new, creative solutions that will make homeownership accessible to everyone.