What is coming to the Housing Market in 2024?

What is coming to the Housing Market in 2024?

The B.C. Provincial Government passed legislation this fall that will have the following impact on housing in 2024 throughout the province. Their goal is to provide more housing, provide new homes faster and keep prices from rising at the rates they have over the last decades. We have a housing affordability crisis in British Columbia, and more so in Metro Vancouver and other metropolitan regions of the province. This is an ambitious plan and requires all stakeholders to align. 

If you need help navigating these changes or have questions on how this affects you, talk to one of our Dexter Realty agents.

Short Term Rental Accommodation Restrictions: 

On October 26, 2023, the B.C. government passed the Short-Term Rental Accommodations Act. This gives local governments stronger tools to enforce short-term rental bylaws, return short-term rental units to the long-term rental housing market and establish a new Provincial role in regulating short-term rentals. B.C. has made regulations which will restrict short-term rentals to principal residences and either a secondary suite or an accessory dwelling unit (ADU) in many B.C. communities, starting May 1, 2024. 

  • The principal resident requirement applies across B.C. in municipalities with a population of 10,000 and over, as well as smaller neighbouring communities.

  • The maximum municipal ticketing fine that a local government may set has increased from $1,000 to $3,000 per infraction, per day

  • The Act will not apply to reserve lands, Nisga’a Lands or the Treaty Lands of a Treaty First Nation, hotels/motels, and a vehicle such as an RV 

Expansion of the Speculation and Vacancy Tax to the following areas:

The Speculation and Vacancy Tax was introduced in 2018 in British Columbia and is an annual tax based on how owners use residential properties in areas in B.C. affected most by the current housing shortage crisis. For any homes which attract the tax that are not exempt, the tax based on assessed value is 2% for foreign owners and satellite families and 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family. There are exemptions which an owner can apply for, which can be found on the provincial government website regarding the Speculation and Vacancy Tax. Each owner on the title must complete their own declaration regardless of whether the property is exempt or not if the property is in the affected area, and these declarations must be done by March 31. Any tax owing would be due on the first business day of the following July.

The following areas were added to the Speculation and Vacancy Tax for 2024. You can use this interactive map to see if your property would be in an area that would require a declaration as a taxable area. 

  • Vernon, Coldstream;

  • Penticton, Summerland;

  • Lake Country, Peachland;

  • Courtenay, Comox, Cumberland;

  • Parksville, Qualicum Beach;

  • Salmon Arm; and

  • Kamloops.

For more information on the Speculation and Vacancy Tax please go to this link: 

Homes For People Action Plan

The B.C. government has introduced new housing legislation to deliver more small-scale, multi-unit housing for people, including townhomes, triplexes, and laneway homes, and to fix outdated zoning rules to help build more homes faster. Also, they will require municipalities to update bylaws to allow for secondary suites. Through Bill 44 and Bill 46, their goal is to provide homes for the “missing middle” and improve the speed at which they come to the market. Municipalities will have until June 30, 2024, to update their zoning bylaws to meet the legislative requirements. They will also be required to update their housing needs report to understand current housing needs over the next 20 years.  

  • Permit secondary suites in single-family dwellings or additional dwelling units

  • A pilot program will provide a forgivable loan of up to $40,000 to people to convert a portion of their home into a secondary suite to rent out at below-market rates.

  • Permit three to four units on lots currently zoned for single-family or duplex use, depending on lot size.

  • Permit six units permitted on larger lots currently zoned for single-family or duplex use and close to transit stops with frequent service.

  • Eliminating the need for public hearings for OCP-compliant projects

  • Structure for Development Cost Charges

This link provides information on these legislative changes and a provincial policy manual on how this will apply to communities.

Transit Orientated Development 

This legislation is an approach to land use planning that locates high-density, mixed-use development within walking distance from frequent transit services. The goal is to provide more housing where it is best suited and to create complete, livable, and sustainable communities by building these homes near transit and services. 

  • The new legislation will require some municipalities to designate Transit-Oriented Development Areas (TOD Areas) near transit hubs. These TOD Areas are defined as areas within 800 metres of a rapid transit station (e.g., SkyTrain station) and 400 metres of a bus exchange and West Coast Express that the Province has listed in regulations.

  • Ensure minimum levels of density, size, and dimension established by the Province in regulations are allowed in TOD Areas. These will vary by municipality and may vary within the TOD Area. Local governments can approve densities that exceed the provincial regulations at their discretion.

  • Remove restrictive parking minimums for off-street residential and allow parking volumes to be set by the market need and demand.

  • There have been 52 areas designated to take immediate effect, and by June 30, 2024, local governments must list the transit stations designated for Transit Orientated Development.

This link provides information on Transit Orientated Development along with the areas designated for this and the policy manual for this legislation.

It is important to understand that while this legislation has been passed, there are still decisions that municipalities need to make and implement for the legislation to be fully understood and put into practice. The framework has been created, now the structure inside it will come in the months ahead.

Please reach out if we can assist further with information or how these changes may impact your real estate decisions. Our Dexter agents are ready to help!

Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.