Multiplex Reforms: The Details Matter

Co-authored by Jens von Bergmann and cross-posted at MountainMath

Many Canadian municipalities are implementing reforms to allow multiplexes in formerly single family areas. These initiatives are driven by provincial reforms and federal incentives to increase housing supply. We review the findings from our recent paper studying the outcomes of multiplex reforms in Kelowna and Coquitlam that emphasize that implementation details matter, and take a look at early indicators of how multiplexes are faring in Vancouver since the City passed its own multiplex bylaw in late 2023.

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Demand based zoning

Co-authored by Jens von Bergmann and cross-posted at MountainMath.

What if zoning was responsive to underlying demand to live in an area? That is, rather than reserving parts of the landscape for the exclusive use of those who can afford an entire underlying lot, what if we instead allow people to build enough residential floor space on the lot to share? This exercise sets up a kind of counterfactual, enabling us to get a look at both: a) what underlying demand for floor space on a lot actually looks like, and b) how our current zoning regime sets itself up to protect the most privileged from having to fully compete with this demand.

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Zoned Capacity – promise and pitfalls

(Joint with Jens von Bergmann and cross-posted at MountainMath)

Is there room for new housing? There are lots of ways to try and get at this question, driven by a variety of different value calculations (e.g. if you need housing you might look around and see room for more of it everywhere, but if you’re well-housed and like your neighbourhood just the way it is, then you might think there’s no room at all). But this can also be transformed into a technical question, where we can pin a definition down to potential methods for making more room. Here’s where we start to talk about planning concepts, including zoned capacity. Is there room for new housing in municipal planning practices and regulations?

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What if recent apartment buildings in Vancouver were 20% taller?

(co-authored with Jens von Bergmann and cross-posted at MountainMath)

Earlier this year a report from the NSW Productivity Commission in New South Wales, Australia, included a useful estimate to illustrate the harm that’s being done by height restrictions in Sydney. We thought it might be helpful to replicate the analysis for the Vancouver context.

Taking ideas from the report we set up a simple counter-factual question:

What would rents be if every apartment building built in Metro Vancouver over the past five years had been on average 20% taller?

TL;DR

We estimate that planning decisions preventing apartment buildings built in the past 5 years in Metro Vancouver from being on average 20% taller are resulting in an annual redistribution of income from renters to existing landlords on the order of half a billion dollars across the region via higher rents.

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A Brief History of Vancouver Planning & Development Regimes

(co-authored with Jens von Bergmann and cross-posted at MountainMath)

Say you want to construct some multi-family housing in Vancouver. How long will it take? The answer is simple: it depends. There are many factors upon which it depends. Here we want to highlight one in particular: when you started.

As it turns out, it used to take a lot less time to build multi-family housing. There is reason to believe we could reduce that time again, but getting there involves gathering a better understanding of our current development regime, and placing it in historical perspective. We begin this process below, before diving deeper into two case studies of developments along Alma Street, located very near one another in space, but separated by some fifty years in start time. We’re going to look at the 14 storey rental building currently under construction at the intersection of Alma and Broadway, and the 12 storey rental building built in 1970 two blocks to the north at 3707 W 7th Ave.

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25 Years of Structural Change

(Joint with Jens von Bergmann and cross-posted at MountainMath)

How are big Canadian Metros growing? Can we see different patterns? Here we want to provide a brief look back at the last 25 years, exploring change over time from 1996 to our most recent Census in 2021. This is also a test of R skills for one of us, who began this post as a learning exercise drawing upon Jens’ excellent CanCensus package and recent data updates.

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On Broadway

(Written jointly with Jens von Bergmann and cross-posted at MountainMath)

We have finally found some time to take a closer look at the Broadway Plan. There are many good things to say about the plan, it adds housing in an amenity and job rich area about to get a new subway line. It promises to not just undo the downzoning the city imposed on parts of the area in the 1970s but enables a bit more housing to make up for lost time.

The plan also tacks heavily against the displacement risk to renters in the established rental apartment areas by both 1) limiting the redevelopment potential in those areas and 2) increasing the strength of tenant relocation and right of return policies, a hard-learned lesson from the redevelopment activity around Metrotown in neighbouring Burnaby. In short, overall there’s a lot to like.

In this post we want to accomplish several somewhat diverse goals

  1. Provide some code to improve the data analysis in the plan that uses census data,
  2. Place the Broadway plan more firmly into context of historical zoning changes in that corridor, and
  3. Interrogate the decision to limit development potential in the existing low-density areas, which we have argued in the past make for ideal sites to concentrate development becaues of their low displacement implications.

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Estimating Suppressed Household Formation

(Written jointly with Jens von Bergmann and cross-posted at MountainMath)

TL;DR

We develop and elaborate a Montréal Method for estimating housing shortfalls related to constraints upon current residents who might wish to form independent households but are forced to share by local housing markets. Applying simple versions of the Montréal Method to Metro Areas across Canada suggests that Toronto has the biggest shortfall, which we estimate at 250,000 to 400,000 dwellings, depending upon assumptions. For Vancouver, the estimated shortfall range is narrower, from roughly 75,000 to 100,000 dwellings. But models suggest housing shortfalls remain widespread, and there is much room for further elaboration. Note: shortfalls estimated in this post only account for those due to suppressed household formation among residents and do not account for e.g. migration pressures, which means that overall housing shortfalls are likely much larger.

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What’s Up With Squamish?

(Written jointly with Jens von Bergmann and cross-posted at MountainMath)

In our previous post we have outlined the broad problems with the recent UBCM report, in this post we return to one particular one, the comparison of dwelling growth to population growth for “BC Major Census Metropolitan Areas” (Figure 2 in the report), paying particular attention to Squamish as the largest outlier. To start out, let’s take a comprehensive look at how dwelling and population growth play out across BC’s CMAs and CAs.

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