Changing how home ownership works

Opinion

Hey there, time traveller!
This article was published 21/11/2024 (316 days ago), so information in it may no longer be current.

Brent Bellamy’s thoughts (The next step for new housing in Winnipeg, Nov. 8) on the city’s approach to the federal Housing Accelerator Fund were an important call to action for those considering our housing future.

It is certainly accurate to say, “successive governments have paid lip service to housing affordability but have been hesitant to create meaningful policies to reduce housing costs…”

This statement is particularly true for condominium corporations, which currently house about 10 per cent of Winnipeg residents. The percentage of people living in condos is much higher in other provinces, reaching more than 35 per cent in Vancouver.

In Canada, even after years of escalating housing prices, most Canadians still dream of owning their own home.

Bellamy’s review of the issues and challenges connected to Winnipeg city council’s efforts to translate the federal government’s accelerator fund into action were on the mark, with one exception: the opportunity to use condominiums as an affordable alternative.

Condominiums are similar to non-profit housing co-operatives, in that they meet the objectives of higher density, reduced environmental footprint, and affordability.

Although it is true that apartment dwelling, in smaller multi-unit apartments, is the norm in much of the rest of the world, that is not the case in Canada.

Apartment-style living in low-rise, multi-unit apartments must be a part of the federal efforts to create affordable housing options in Canada.

But are privately owned rental apartments the only option? Why is no one talking seriously about other forms of apartment living?

Why is there no focus on co-op housing and apartment-style condominiums? Co-operative housing, including those with life-lease arrangements are, and have been, remarkably effective in keeping housing costs affordable.

Long waiting lists for admittance into housing co-operatives are a testimony to that fact.

As Bellamy points out, one in five homes in Canada are revenue properties. The questions are: how do we get speculation and profit out of the housing market; and how do we actually make housing affordable?

I have argued that one of the simplest ways is to change our expectations of what affordable housing looks like.

In a world where managing our environmental footprint should become a crucial test of our commitment to dealing with the climate change crisis we face, maybe living in the suburbs in a 2,400-square-foot dream home will have to change.

Maybe the dream of owning your own home shouldn’t have to involve suburban living.

The City of Winnipeg should support alternatives to private rental accommodations. Building more apartments without considering not-for-profit options is a mistake.

The current approaches, directly subsidizing developers or incentivizing “affordable rents” for a fixed period is a second-best option.

Ownership as a solution — either collective ownership like co-operative housing or individual ownership in condominium corporations — should be included in the mix.

The main difference between non-profit co-operative housing and a condominium unit is that a co-op housing project has collective ownership and condominiums have individual ownership.

How they are managed is very similar, and the experience of living in either is based on the strength of their boards of directors and the level of involvement of the owners or co-op members.

Despite the similarities in how they actually operate, governments, including the current one, seem reluctant to consider condominiums as a legitimate alternative to private, for-profit apartment ownership and management.

First, condominiums are among the most affordable ownership option. In Manitoba, the average condominium sells for about $225,000. One-bedroom units can be owned for less than $150,000.

Individuals or couples with an income of $60,000 can afford to own a one- or two-bedroom apartment-style home in Winnipeg.

With a few amendments, the Condominium Act can make condo living an even more attractive option.

One of the first changes should be to allow condominium boards to establish rules to limit or prevent “investor class” owners — people who will rent out their units.

This accomplishes two important things. First, it significantly reduces the allure of market speculation and the profit motive from the equation. Second, it eliminates the conflicts between owners and investors.

Fortunately, correcting this would require only a simple amendment to the Condominium Act which now requires condominium corporations to allow “investors” to own units.

Owners living in the building choose to live together with other owners. They differ from “investors” and have a different perspective on, and greater respect for, the rules governing their living together.

Governments, at all levels, need to stop treating condominium corporations as only for-profit entities.

Because they are considered corporations and have a majority, or a large minority, of units owned by investors, they have been excluded from tax breaks and government supports for simple things like converting to energy efficient heating or the use of heat pumps.

The City of Winnipeg has also been tempted to treat condominiums as for-profit corporations in terms of taxes and services.

If governments were supportive of fully not-for-profit condominium corporations — multi-unit, medium density housing that we need — it would offer Manitobans one more affordable housing option.

As someone who has owned a condo and has served as a condo president, I find it unfortunate that this housing alternative has received little support from its elected officials.

Hopefully, that will change.

Jerry Storie was Manitoba’s first housing minister, in 1982.