Housing fix suggested

Kelowna’s quality of life is of the utmost importance.

Those lucky to be born here or who, like myself, move here, stay because of the abundant natural amenities that surround us every single day. But the sunshine tax has a heavy cost, and all too often our leaders have failed to build a city that works for everyone—a city where good jobs are plentiful, housing is affordable and residents from all economic backgrounds can not just survive but provide for their families, save for retirement and thrive.

With former Bank of Canada governor Stephen Poloz saying Canada is in a recession, arguing our economy’s weakness has been masked by strong population growth, we should focus on creating a stronger local economy and a lower cost of living, lest our quality of life be reduced by widespread layoffs, financial insecurity, and even greater cost of living challenges.

The vast majority of Canadians, including Kelownians, live in privately owned or rented housing. I grew up in a suburban house built in the early 2000s and I now have a mortgage on a two-bedroom apartment in the south central area of the city. Most people live this way and we need to make sure people can afford this, the same way they could before local prices doubled compared to local incomes over the last 15 years.

It’s often been suggested Kelowna should adopt the far-left tax and regulatory policies of San Francisco and Vancouver, to dramatically increase taxes on new housing with so-called “inclusionary zoning” mandates and higher development cost charges.

The simple fact of the matter is when you increase taxes on something, it becomes more expensive. There’s a reason why those cities have the highest housing costs on the continent. We instead need to focus on building the right housing and lowering costs for our residents by fixing our local rental vacancy rate. For too many years, it has sat below the healthy (as defined by the CMHC) 3% to 5% threshold, leading to skyrocketing rents and increased housing insecurity.

Any plan to fix the housing crisis that ignores the basics of supply and demand is simply doomed to fail. Let people choose how they want to live by providing options to them and you will end up with the healthy balance our city has avoided for far too long.

A healthy local economy requires regulatory and permitting competitiveness, strong public services, and a local government willing to work with entrepreneurs and businesses who create the long-term, high-quality, high-paying jobs that people need.

The only way we can afford the investments in infrastructure that Kelowna needs is to create a strong private sector tax base. Kelowna’s tech and aerospace sectors are growing, but we must ensure these industries are supported with the infrastructure and workforce they need while working with established industries like tourism and agriculture.

Local businesses struggle from the high cost of rent the same way individuals do, and targeting 5% rental vacancy rates for industrial and commercial spaces through planning reforms that focus on land use efficiency will lower these costs for them as well.

We can continue to preserve and protect our beautiful natural environment through sensible planning, investment, and policy. Growth should benefit all residents. New developments can help reduce our long-term infrastructure deficits with a bonded utility funding model, and development patterns which put downward pressure on property taxes through better land use efficiency will help fix our tax system, alongside provincial reforms.

We can address these challenges by embracing responsible changes to reduce everyday expenses, ensuring that everyone—whether they are young professionals, families or retirees—can afford to live, work, and thrive here.

Davis Kyle