Lots of housing and nowhere to live

Re: “Everyone loses with B.C.’s realestate speculation tax,” comment, April 22.

Contrary to Ken Mariash’s opinion, the speculation tax will help many people by reducing artificial scarcity in housing created by investment and poor data. According to the Victoria Real Estate Board, more than 400 homes are for sale within seven kilometres of Victoria city hall. On Craigslist, 369 homes are for rent, for a total of 769 homes — all close to downtown.

These homes would provide housing for about 1,600 people.

According to StatCan, about 1,200 people move to Victoria each year — a historical high. We have more than a 16-month supply of housing. To this supply must be added what is provided by the builders and developers marketed directly to the public. Then, add the housing being built for occupancy in one and two years. Neither is tracked by the city.

The problem is that all this housing is priced at market levels. Like diamonds, prices are high because of artificial scarcity.

Now, add the supply that will open up as the new policies of both levels of government come into effect to diminish artificial scarcity. The speculation tax will open up some of the 3,450 unoccupied dwellings in Victoria, and the municipal vacationrental fees will open up some AirBnB units.

We need to solve the ever-growing need for housing that is priced fairly for the 40 per cent of the population whose income is not sufficient to afford very profitable and overly abundant luxury housing. The speculation tax will increase supply, lower prices and build affordable housing.

Don Cal Victoria