BC Renters by Household Type & Need

Yesterday BC unrolled a quick support package for tenants and landlords affected by COVID-19 related job and income losses. In addition to an effective moratorium on evictions (yay!) and a rent freeze for the duration of the crisis, the province offered $500 going directly to landlords to offset rents for those with lost income. The measure appears to be aimed at preserving landlord incomes and landlord-tenant relationships even as the eviction moratorium temporarily boosts the bargaining power of tenants. Lots of details remain to be determined, including, apparently, whether the benefit applies per tenant or per unit.

Here I wanted to quickly toss out relatively recent figures for what renter households look like in BC, broken out by Core Housing Need. Data come from a quick run with Census Analyser (CHASS) for 2016.

HouseholdsRenting-fx2

Many renting households contain more than one income earner, likely making them reliant upon multiple incomes that might have been affected by COVID-related disruptions. If BC goes with a $500 benefit per unit (as opposed to per tenant), this may diminish the ability of multi-income households to make rent. On the other hand, together with the federal CREB benefits of $2000 per month for up to four months, and BC’s $1000 one-time benefit, households that have lost multiple earners will (eventually) be bringing in replacement income. In the meantime, they’re left to negotiate with landlords – who cannot evict them for nearly any reason – for the duration of the crisis.

If we look at renting households in core housing need (before the crisis), most were likely single-income earning households. Single-person households will do the same in the present crisis regardless of whether the $500 rental benefit applies per tenant or per unit. But a lot of renter households contain children and these are also over-represented in core housing needs. Notably, this included over half of all single-parent households in BC even before the COVID crisis. If the benefit applied per tenant and actually included children, it might go a long way toward diminishing the immediate crisis besetting many single parents. It might also assist couples with children, whether they’re reliant upon a single income or not.

More broadly, BC should probably consider targeting some relief at parents, who can no longer rely upon schools or daycares for childcare. But renters with children also face an additional housing burden insofar as their rents tend to be higher. After all, they’re often paying for extra room without the benefit of an extra income. The federal benefits flowing to households with multiple lost incomes will only apply once (if that) to single-parent households. BC should consider extra rent benefits for these households.

Of course, this was true before the COVID outbreak. More broadly, COVID-related policy in BC, and Canada as a whole, so far seems to be working toward putting in place hasty new patches to its old social safety net. This is a good start, but Canada also needs to patch the rips that were already there, which are being torn even further apart under the strain of the present crisis. Raise supports for children. Raise the disability rates. Put policies in place to insure that Canada’s right to housing is more than just a vague promise. If we’re all in this together – as we should be – then now’s the time to prove it by renewing the social contract for everyone. Let’s get to it.

 

UPDATE: Single person households make up a larger portion of renter households (above) than they contain in terms of total renters (below). Both are useful figures, but I earlier posted a figure with numbers based on total renters within households, rather than renter households. I’ve corrected the above to remain consistent with the language of households and avoid confusion. The slide based on total renters within household is now posted below.

HouseholdsRenting-fx1

Knock Knock Anybody Home?

co-authored with Jens von Bergmann & cross-posted over at MountainMath

Empty homes are in the news again in West Vancouver after a West Vancouver council motion asking the province for the power to levy their own Speculation and Vacancy tax.

THEREFORE BE IT RESOLVED THAT the Provincial Government provide local governments with the power to levy their own Speculation and Vacancy Tax, so that they too can address housing affordability and other community effects of vacant homes.

West Vancouver seems interested in the empty homes and not the satellite family component of the SVT, which may well be a wise choice given how messy and problematic a law defined based on spousal relationship can get.

The motion is interesting for several reasons, not just because of the focus on vacancy vs satellite families. It sets the stage by naming housing affordability as a key challenge.

WHEREAS housing affordability is a key challenge in many municipalities but particularly in the District of West Vancouver with a median house price of $2.5 million, and a rental vacancy rate of 1.2%;

As evidence the motion rightly points at the low rental vacancy rate. The ownership metric is curious though as it explicitly focuses on “houses”, excluding more affordable multi-family units from consideration. This is likely no accident, as West Vancouver has a solid track record of focusing their energy on the most expensive type of housing by permitting fewer multi-family homes than more expensive single-detached houses to be built, the latter of which often just replace older single-detached homes and do not add to the dwelling stock.

west-van-completions-1

 

The next part reads:

AND WHEREAS according to the 2016 Census, approximately 1700 homes, or almost 10% of dwellings in West Vancouver, were identified as “unoccupied”;

This is incorrect, the 2016 census enumerated 1,525 unoccupied dwelling units in West Vancouver, comprising 8.2% of the total dwelling stock. Council is only partially to blame for this misstatement, reporting on this census metric has generally been sub-optimal, to say it politely. The problem is not just about getting the number right, but more importantly understanding what the numbers mean. The census enumerates homes that are empty on census day, and homes can be empty for several reasons. Some of which are mundane and even desirable, just one “whereas” ago it looked like council wanted more unoccupied homes – that are available for rent. There are other categories of unoccupied homes that are important in enabling residential mobility, homes that are rented but not moved in yet, homes that are for sale and unoccupied or bought and not moved in yet. The US ACS tries to track down reasons why homes are unoccupied, it can be instructional to use that as base of comparison when looking at Canadian data as in the following graph based on some of our past joint work.

West_Van_2

 

Being unoccupied on a particular day, for example Census day, does not give direct information about homes that might be targeted by an empty homes tax. The list of exemptions in Vancouver’s Empty Homes Tax or the provincial Speculation and Vacancy Tax opens another window into reasons why homes may be empty.

We can further break down the unoccupied homes the census found in West Vancouver by structural type.

west-van-unoccupied-3

 

In West Vancouver, most homes registering as unoccupied are single family homes, followed by units in suited single family homes that the census refers to as “Apartment or flat in a duplex”. This is to a large degree due to the building stock that leans heavily on single-detached homes. The two dwelling types have also been responsible for most of the growth in homes classified as unoccupied in the census.

It is helpful to also look at shares of homes in each type that registered as unoccupied, and put in context with the Metro Vancouver shares.

west-van-unoccupied-share-4

 

The shares of unoccupied homes are generally higher in West Vancouver, with the exception of row houses and highrise apartments. The shift in row houses is fairly recent, and should probably not be over-interepreted because of the small overall number of row homes. The difference in rates of unoccupied highrises likely stems from a relatively high share of rental highrises in West Vancouver.

The high share of unoccupied “duplex” units stands out. Recall that in Metro Vancouver units classified as “duplex” by the census are mostly suited single family homes. These register with the highest share of unoccupied homes throughout Vancouver, which is driven by empty secondary suites in such houses. Incidentally, secondary suites are exempt from both the City of Vancouver Empty Homes Tax and the provincial SVT.

In all of this it is important to remember that census unoccupied counts were taken back in 2016, before these taxes came into effect, and some owners will likely have changed their behaviour because of the tax and rented out or sold their previously empty home. Indeed, we now have a much more recent and much better defined dataset predicting how many problem empties are likely to be taxed by an Empty Homes Tax in West Vancouver. That dataset comes from the Speculation and Vacancy Tax itself. Worth noting: we are still in the pre-audit phase for the SVT and it is not clear how many owners are trying to dodge the tax by declaring incorrectly. But setting aside Satellite Families (where homes aren’t empty), the SVT numbers for the City of Vancouver aren’t very different from the City of Vancouver Empty Homes Tax numbers, where we are now in the third year and already have two years of complete declarations and audit cycles. So far so good.

Bottom line is that a much more reasonable expectation of the number of homes that may be targeted by a West Vancouver empty homes tax at this point is around 221, the number of vacant homes paying the SVT.

west-van-SVT-5

The next two whereas speak to revenue expectations.

AND WHEREAS the Province reported that in 2018, $58 million was collected under the Speculation and Vacancy Tax program, and that $6.6 million of that was collected from West Vancouver homeowners;

AND WHEREAS the Province of British Columbia gave the City of Vancouver the power to impose its own vacancy tax which has provided Vancouver with approximately $40 million in additional revenue;

The $6.6 million cited as being collected from West Vancouver covers both, vacant homes and homes occupied by satellite families. Only $4.1 million was collected for vacant homes in West Vancouver. The comparison the the City of Vancouver tax is somewhat irrelevant to this discussion, other than stressing again that revenue expectations is an important driver of this motion. One should note here too that the tax rate West Vancouver could charge for vacant homes is limited by a very simple calculus. Once the combined tax rate of municipal and SVT vacancy taxes exceeds the property transfer tax, owners can trigger a sale to e.g. a relative in order to pay the lower property transfer tax and be exempted from the vacancy taxes, with all the revenue accruing to the province. The City of Vancouver has hiked their Empty Homes Tax rate and is slowly approaching this limit.

Upshot

An Empty Homes Tax can be useful. It incentivizes better use of property by returning some unproductive properties back into the rental or ownership market. It generates revenue in case people are unwilling to rent out their mostly unoccupied home.

But it also comes at a cost, it can be intrusive and there are always edge cases. And it takes a sustained effort to administer fairly.

We believe that in the case of the Vancouver region the benefits generally outweigh the costs at this time. We can imagine that we might come to a different conclusion if e.g. the rental vacancy rate climbed up above 3%, but we don’t see a medium-term path leading to that.

Looking back at the City of Vancouver’s experience it seems prudent to approach an Empty Homes Tax with realistic expectations. In the City of Vancouver our Former Mayor said that the tax could free up as many as 25,000 empty units for rent, an unfortunate statement that raised expectations unreasonably high and is still being brought up when people criticize City staff for their EHT numbers not measuring up to lofty promises

The bottom line is that clear and realistic expectations are an important part of a successful implementation. It is good politics, and City staff will thank their politicians for this.

As usual, the code for the analysis is available on GitHub.

Overnight Visitors and Crude Travel Vectors

co-authored with Jens von Bergmann & cross-posted over at MountainMath

The spread of Coronavirus is reminding us of just how often people travel around, especially as various locations become quarantined and international travel corridors get shut down. So let’s take a look at some basic data on travel patterns here of relevance to us here in Vancouver. Then we’ll put them back in the context of Coronavirus.

TLDR: travel data is really interesting, don’t be frightened of travelers, and there’s still a lot we don’t know about coronavirus.

We’ve looked at the movement of people before in terms of migration, immigration and commuting patterns. But these are movements that are either regularized, everyday, and routine (e.g. commuting) or shuffle people between one settled set of routines and another (e.g. migration). Travel data gives us something different, representing something more like the unsettled movement of people. People travel for work, to visit family, and of course, for tourism. The Tourism Industry is interested enough in travel data that they ask Statistics Canada to compile data for them. Stats Canada combines Canadian travel surveys and border crossing administrative data to get us a decent look at overnight stays. So it is that we get overnight stayer data for Vancouver!

Let’s look at where people are visiting Metro Vancouver from. The Tourism Vancouver data has an interesting selection of countries available, with special breakdowns for Canada and the USA. More than a quarter of all overnight stays in Metro Vancouver are trips from elsewhere in British Columbia. Another quarter plus of trips arrive from elsewhere in Canada, with Ontario and Alberta leading the way. The USA accounts for just under a quarter of overnight visits. Altogether, Canada and the USA account for over 8 million of the roughly 10 million visits. Most American visitors to Metro Vancouver arrive from nearby neighbours down the Pacific Coast (WA, OR, CA), which together account for over half of travel from the USA. About as many people visit from all of Mexico as from nearby Oregon (140k).

Overnight1

Of the slightly less than two million international visitors from beyond NAFTA borders, a little over half arrive from Asian/Pacific countries, with most of the remainder from Europe. China, the UK, and Australia, Japan, India, and Germany each accounted for more than 100k visitors in 2019, South Korea, Hong Kong, and Taiwan not far behind. Let’s put all these flows together on a map (click for interactive access).

Overnight1a

Of some concern, lots of the places identified above have had recent outbreaks of Coronavirus. We’re still in early days of tracking the virus. And we know it’s already having major effects on travel. But can we look at current prevalence estimates and recent travel patterns to give some insights into crude vector risks for Metro Vancouver? Maybe. It’s worth keeping in mind that everything is still pretty much up in the air in terms of what we know!

First let’s look at up-to-date active confirmed Coronavirus cases drawing on data collected at Johns Hopkins.

Overnight2

Wuhan, of course, appears as the centre of the outbreak, and Hubei Province in China contains most of the active confirmed cases to date (as of March 03, 2020!) The number of cases is important to track, obviously, and the starting point for healthcare workers and epidemiologists alike. But focusing on these numbers can provide a misleading impression of how widespread the Coronavirus has become. So let’s come up with a crude estimate of prevalence instead of case numbers. Here we’re going to use active confirmed cases as our starting point. Another option is to track all confirmed cases, including those who have recovered (no longer testing positive) or died from coronavirus. But active confirmed cases might arguably give us a better sense of current spread.

We can plot the evolving nature of active confirmed cases in terms of prevalence estimates across places, effectively dividing total number of active confirmed cases by population for our data reported so far. Setting this to motion, we can track outbreaks by prevalence across time. Even just looking at active confirmed cases, we get a sense that recorded prevalence has recently stopped climbing for Hubei province. Meanwhile, outbreaks in South Korea, Iran, Hong Kong, and the nearby state of Washington continue to grow. Also worth noting, some countries (e.g. South Korea) seem to have a better handle on testing the virus, providing better confidence in their numbers. The numbers coming out of other locales (Iran and the USA) seem far less reliable, either because of inconsistent testing, untrustworthy reporting by officials, or both. This sets a real limit on what we can know so far.

overnight3

Overall it needs to be stressed that – given the numbers we have so far – the prevalence of coronavirus is still very low. Even in Hubei province, the centre of the outbreak, not much more than a single active confirmed case per thousand people has been confirmed. Comparing locations of cases to surrounding populations, most places around with the world with outbreaks still see only about one active confirmed case per hundred thousand people. Even setting aside the hyper-cautious mood around the world and its effects on travel, if you met a visitor from one of these places in Metro Vancouver, fairly unlikely that they would be a carrier. There’s little reason to be scared of individual travellers!

But what about travel patterns writ large? Surely even if any individual presents a very low risk as a vector, by sheer number, the masses of people travelling through Vancouver from places with coronavirus outbreaks represent a risk. Indeed, that’s how the coronavirus has spread so far. We can very crudely estimate this risk by setting a base likelihood that each individual traveller from a given outbreak location is coronavirus-free (1 – cases / population). In other words, we might use currently active confirmed cases as our measure of prevalence, estimating we can be 99.99975% certain that a given traveller from Washington State will not be a carrier for coronavirus. But what if a LOT of people travel from Washington? Then we exponentiate 99.99975% by the number of visitors (126,493 for the first three months of 2019 as a proxy) to come up with an estimate that none of these travellers carry the virus (we really should be drawing without replacement here, but this is a good approximation), with the complement giving a rough estimate of at least one visitor being a carrier. This comes out at 27% using our current estimates. This only considers Washington residents travelling to Vancouver and still neglects Vancouver residents travelling to Washington and getting infected there. And it relies on current active confirmed cases, it does not include active but not yet confirmed cases. And it assumes travel patterns similar to a year ago. Still, it provides us with a measure of vector risk to Metro Vancouver that combines risk of coronavirus with travel volumes.

Let’s run with this for recent coronavirus outbreak data based on travel volumes similar to past years – EXCEPT excluding cases from Hubei province in China after January 23rd (when the quarantine went in place). What does our crude evolving overnight travel vector risk look like?

overnight4

Here we can see rapidly changing vector possibilities. Conditions are changing fast! Still, it’s hard to know how much to trust these numbers. Given what we understand about testing at the moment, it’s likely we’re still overstating the risk from high quality testing locales (South Korea), as well as understating the risk from places where testing has been poor (Washington) and places where we don’t have any visitor data at all (Iran). We’re also missing current data on how travel is changing as well as data on where people from Metro Vancouver are traveling, which is a big deal given that most of our cases so far represent returned travelers from abroad.

Here is a still of the most recent snapshot as of the writing of this.

Overnight5

Upshot

So here are the big takeaways from our exercise: 1) Visitor data to Metro Vancouver is actually really interesting, even for those outside of the tourism business. 2) Don’t shun travelers from abroad! The likelihood of anyone you meet, even coming from an outbreak centre, being a carrier of coronavirus is very, very low. 3) The combination of travel patterns plus coronavirus prevalence gives us some interesting ways to model evolving vector risks in Metro Vancouver. 4) But it’s not clear how much we should trust our data. Travel patterns have surely altered, and we need better coronavirus testing fast, especially in places like Washington State.

Overall, integrating travel data with coronavirus data may, if nothing else, help people and agencies prepare and plan better. Practically any planning is better than some of the ad hoc decisions being made out there, as when American Airlines suspended its flights to Milan only after pilots refused to fly there. For most people, the important thing is to listen to local health agencies, like the BC Centre for Disease Control, wash your hands, and be kind to those around you, wherever they come from.

As usual, the code for the post is available on GitHub in case anyone wants to refine or adapt it for their own purposes.

 

UPDATE: For a look at how the professionals are joining international travel data to coronavirus data, see Gardner (et al) here (now unfortunately outdated!)