 JOANNE LEE-YOUNG (VANCOUVER SUN) It was a move closely watched because allowing for duplexes is seen as a nod to a “quick-start action” that will pave the way for later allowing triplexes and multi-unit buildings in single-family neighbourhoods and is part of a broader program to increase housing options across the city.
Vision Coun. Kerry Jang cast it as a “polemical debate” between “those who fear change and people saying they need a place to live.” It was the last major decision for Vision Vancouver, a party that has ruled for a decade, but will not have a council majority in the next term. City hall veterans in Vancouver have long described changing single-family neighbourhoods as an issue that is basically to be avoided or untouchable because it can only lead to political ruin. “There’s no doubt the idea of massive, blanket rezoning of single-family areas is very much a third rail. … There has always been something about keeping the sanctity of single-family zoning,” said former six-term councillor Gordon Price, heading into the evening portion of last night’s public hearing and ahead of knowing the evening’s outcome. “The parameters of the housing crisis have changed and are changing,” he said. “You have to think about them and what has changed.” He added, however, that with new supply coming on and a change in sales and prices and other aspects, “you have to sculpt a plan. The demand for consultation is real.” When the vote came late Wednesday, councillors Melissa De Genova, George Affleck, Elizabeth Ball and Adriane Carr opposed. Councillors who opposed the mass rezoning said the process has been too rushed, with residents given too little time to consider the change. NPA Coun. Hector Bremner said he supports duplexes as an integral part of middle-class neighbourhoods, but protested the “broken process.” The NPA’s De Genova, who had tried and failed to have the issue deferred to the new council to be elected on Oct. 20, said she could not support a “one-size-fits-all” proposal. “Density must be done neighbourhood to neighbourhood,” she said. Carr, of the Greens, said there are too many outstanding questions, including whether the rezoning would make affordability better or worse. But Vision’s Kerry Jang said the rezoning was designed to give people options. For example, people could split their home to make room for adult children, who can’t afford to live in Vancouver now. “Our job as a city government is to provide as many options as possible so people can choose.” Vision’s Raymond Louie called it “gentle densification.” And Mayor Gregor Robertson said he supported the rezoning as a minor start to dealing with the terrible unaffordability. “This is not a silver bullet; it is an important first step,” he said. “We’re going to take a lot more action in the years to come.” “We have to deal with the fact that more than half of the City’s land base is zoned exclusively for single family homes – homes that are out of reach for the overwhelming majority of residents.” He likened the impact of the duplex rezoning to the minor effect on neighbourhoods experienced after allowing laneway housing. Earlier, as council listened to members of the public, they heard criticism of Vision Vancouver for pushing for what they called significant changes without enough discussion “on the eve of an election.” “There is lots of transition,” in the housing market right now, said Joan Rush, a retired lawyer and west side resident Joan Rush. “Why don’t you wait and see what will happen.” “There are already areas with duplexes,” said Ronald Hatch, a publisher who described himself as a longtime Vision Vancouver supporter, but one opposed to the rezoning. Instead of blanket zoning across the city, there could be pilot projects in areas where it makes sense, he said. “We should do it with citizens being more involved,” said Mel Lehan. “I am for adding purpose-built rental and density in certain areas.” The public hearing heard from 60 speakers over two days. Going into the second day, there were 306 letters against the motion, including two petitions, against 186 letters in support, including one with 50 signatures. “It’s interesting. Vision Vancouver had a very lengthy run. We’ve had an incumbent party that has been working at the end to continue and go through a process of renewal,” said Stewart Prest, instructor of political science at Simon Fraser University and Douglas College. “They were trying to re-engage in the form of developing their housing strategy and the crisis broke to the forefront. It was a big change from when no one was talking about it to them being overtaken by it.” He said a heated discussion about housing has altered former partisan lines. “The 50,000-ft view is that housing broke the party system in Vancouver, along with financing changes that have allowed for more voices to join.” Now, said Prest, there is a new spectrum of “urbanist” and “conservationist” parties, and there are many more diverse speakers in the discussion for and against opening single-family areas to greater density. “Ongoing awareness of affordability issues has shaken things loose.”  ANDY BLATCHFORD (CANADIAN PRESS) - The Bank of Canada left its interest rate unchanged Wednesday in what could be just a brief pause along its gradual path to higher rates.
The central bank kept its benchmark at 1.5 per cent — but many experts have predicted it could introduce another increase as early as next month. In a statement Wednesday, the Bank of Canada said more hikes should be expected thanks to encouraging numbers for business investment, exports and evidence that households are adjusting to pricier borrowing costs. “Recent data reinforce governing council’s assessment that higher interest rates will be warranted to achieve the inflation target,” the bank said as it explained the factors around its decision. “We will continue to take a gradual approach, guided by incoming data. In particular, the bank continues to gauge the economy’s reaction to higher interest rates.” Bank of Canada governor Stephen Poloz has raised the rate four times since mid-2017 and his most-recent quarter-point increase came in July. The bank can raise its overnight rate as a way to keep inflation from running too hot. Its target range for inflation is between one and three per cent. The Bank of Canada said the economy has seen improvements in business investment and exports despite persistent uncertainty about the North American Free Trade Agreement and other trade policy developments. NAFTA’s year-long renegotiation, which resumes Wednesday in Washington, and other trade unknowns are under close watch by the bank. The statement also pointed to other encouraging signs in Canada, including evidence the real estate market has begun to stabilize as households adjust to higher interest rates and new housing policies. Credit growth has moderated, the household debt-to-income ratio has started to move down and improvements in the job market and wages have helped support consumption, it said. Heading into Wednesday’s rate decision, analysts widely expected Poloz to hold off on moving the rate — at least for now. Last month, Poloz stressed the need to take a gradual approach to rate increases in times of uncertainty. He made the remarks during a panel appearance at the annual meeting of central bankers, academics and economists in Jackson Hole, Wyo. “Taking a gradual, data-dependent approach to policy is an obvious form of risk management in the face of augmented uncertainty,” he said in his prepared remarks. The Bank of Canada’s next rate announcement is scheduled for Oct. 24. In its statement Wednesday, the bank also explained why it’s not going to raise the interest rate based on a recent inflation reading that showed the number had climbed to the top of its target range. July’s unexpectedly high inflation number of three per cent was just a temporary spike in the data caused by airfare and gasoline prices, the bank said. It predicted inflation to edge back down towards two per cent in early 2019. Core inflation, which omits volatile components such as pump prices, has remained firmly around two per cent, the bank noted.  Vancouver's warehouse lease rates are up 29 per cent in the first quarter year-on-year versus a global average of 3 per cent
(FINANCIAL POST) Forget that multi-million-dollar condo on Vancouver’s waterfront. Invest in a warehouse instead. The Canadian city is the world’s hottest industrial real estate market with lease rates up 29 per cent in the first quarter year-on-year versus a global average of 3 per cent. IKEA and BMW AG are among companies that have snapped up the biggest industrial and logistics spaces, according to data provided by CBRE Group Inc. “Industrial previously was almost like a forgotten asset class,” Jason Kiselbach, vice president and sales manager at CBRE Vancouver, said by phone. “But we haven’t even scratched the surface of the demand that’s going to continue to grow and put more pressure on the industrial market.”
E-commerce giants like Amazon.com Inc. are driving the need for more logistics and storage space in urban centres. Consumers demanding quick online deliveries are forcing companies to carry more inventory in the city where the last-mile deliveries take place. Those dynamics are playing out across Canada and the U.S. “The big household retail names — you don’t realize that everything that they provide you has to come through a warehouse,” said Kiselbach. “The new retail is really warehouse direct sales.” It’s great news for landlords but underscores how Metro Vancouver is running out of the kind of land that supports one in four jobs — and often some of the best-paying ones. Geographic constraints like mountains and water are one issue. But vast swathes of prime property near the city are reserved for agricultural use, while rezoning industrial land to residential use can mean a big bump in revenue for municipalities. Industry forecasts indicate the region could run out of industrial land within a decade — some even say as early as 2020. If that happens, it could hollow out Vancouver’s economy, relegating the Pacific Coast city into a playground for wealthy retirees and tourists, Robin Silvester, chief executive officer of the Port of Vancouver, Canada’s biggest, has long warned. A site needs to be at least 100,000 square feet to be of any use to most major industrial business. As of June, Vancouver had five, according to CBRE. “These rising lease rates really speak to the strength of the economy — the growth in population, consumer spending,” says Kiselbach, but adds, “there’s definitely the potential that we might lose some economic benefits if we can’t address the supply issue.” |