The market doesn’t care about your grandma:
Trickle down apartments
The current crisis in housing as it is playing out in Nova Scotia has been well described by Sam Krawec and others:
rapidly increasing housing costs, low vacancy rates, no permanent
system of rent control. There’s a general lack of protections for
tenants, who are increasingly seen as the only thing standing between
greedy landlords and the big payouts they feel entitled to.
The Conservative provincial government has fully embraced the
commodification of housing. For them, the primary purpose of all
property is as an investment to yield profit. So their spending on
housing has prioritized rent supplements, which subsidize the profits of
private landlords, and large payouts to private developers to
fast-track for-profit housing. This includes a small portion of
ambiguously-defined, time-limited “affordable” units, most of which
won’t be built for another few years.
Premier Tim Houston, is trying to convince us that this is just a
simple problem of supply and demand. But this is coming from a
Bermuda-based accountant for 12 years who was named in the Paradise
Papers, and whose transition team was chaired by the CEO of a prominent
private development group. His government has argued that, by increasing
the supply of housing, any housing, we can solve the current crisis. We
are expected to believe that more homes in lakeside subdivisions and
more luxury condos will let affordable apartments just trickle on down.
As market prices soared and public money flowed, many owners of
actually-affordable rental units saw an opportunity: demolish low-rise
affordable rental buildings, and use millions of dollars in public funds
for new buildings. But the small number of “affordable” units in these
buildings will rent for hundreds of dollars more than the units they
replace.