Growth Pays for Growth? How Misguided Policies Are Failing Young Canadians

If you are young in Metro Vancouver, read ahead at your discretion. There is a significant disconnect between multiple levels of government in Canada on how to tackle the growing housing crisis. And this disconnect is costing us dearly. When you hear “housing crisis,” it’s not just a talking point. It’s the harsh reality millions…

If you are young in Metro Vancouver, read ahead at your discretion. There is a significant disconnect between multiple levels of government in Canada on how to tackle the growing housing crisis. And this disconnect is costing us dearly. When you hear “housing crisis,” it’s not just a talking point. It’s the harsh reality millions of Canadians face, especially in cities like Vancouver, where unaffordability is skyrocketing, rents are surging, and the dream of homeownership is slipping away.

Metro Vancouver Regional District (MVRD) oversees regional services like transit, wastewater, and drinking water. Their response to growth? A “growth pays for growth” approach. It sounds sensible—more people need more infrastructure, and someone has to foot the bill. However, how MVRD implements this philosophy is profoundly inequitable and fundamentally misguided. Their solution? Pile more fees onto new homes through Development Cost Charges (DCCs), sometimes doubling or even tripling them. 

According to their report, this will only make a bad situation worse.

(Chai, 2024)

(Chai, 2024)

The consequences are apparent—new homes become more expensive to build, making them more costly to buy or rent. At a time when we need more homes, this policy discourages new construction. The very development meant to alleviate the crisis is stifled at its inception. Growth pays for growth? More like growth punishes growth, choking off essential community development.

A growing population boosts the economy, attracts new talent, and funds public services. But MVRD’s approach squeezes growth until it gasps for air. And who bears these crushing costs? Young Canadians—those trying desperately to find stable housing, set down roots, and contribute to their country. This policy doesn’t just push people out of their communities; it pushes them out of Canada altogether in search of a future that should be possible right here.

As MVRD admits in its own report, the increase in DCCs will have severe impacts: fewer homes built, fewer development sites, and further increases in unaffordability. It’s the definition of insanity: doubling down on a strategy that’s already proven to fail. And this comes right after an election in which voters made it clear that housing affordability was their number one concern. The people spoke, yet here we are, facing a policy that will deepen the crisis. How is this still on the table?

The federal government understands the problem more clearly. Historically, Ottawa stepped in when local resources fell short, as seen during the significant infrastructure push of the 1960s and 1970s. Today, they’ve introduced the Canada Housing Infrastructure Fund (CHIF)—a $6 billion lifeline to support the infrastructure needed to build more housing. But there’s a catch: regional bodies like MVRD must freeze DCCs to qualify for this funding. It’s a golden opportunity for MVRD to change course without harming young Canadians, but will they seize it?

The deeper question we need to ask is this: Is simply building more the real solution? The DCC fiasco highlights a troubling reality—it’s not just about supply. Sure, more housing is part of the answer, but supply alone isn’t enough if policies make buildings unaffordable or unsustainable for developers. Housing isn’t just about bricks and mortar; it’s about the systems that support development—financing, land costs, and community infrastructure.

This debate is telling us something bigger: building our way out of the crisis without rethinking how we support and prioritize housing is an illusion. When new builds are priced beyond the reach of those who need them, and development policies favour profit over community needs, the problem runs deeper than supply. It’s about how we build, who we build for, and what kind of society we want to create.

It is time for our governments to get on the same page on housing affordability. We need to end policy clashes and focus on proven solutions—like housing co-ops, which provide stability through collective ownership, and rental building financing that keeps units affordable. We need coordinated, compassionate policies that put young Canadians, newcomers, and everyone seeking a home first. The DCC situation has shown us that simply building more without ensuring affordability is a recipe for crisis. We must learn from our mistakes and apply the solutions that are already within reach.

Chai, H. (2024, November 7). Inside The Metro Vancouver DCCs And The Potential Housing Price Increases. Storeys. https://storeys.com/metro-vancouver-dccs-housing-prices/

Chai, H. (2024, November 8). Canada Housing Infrastructure Fund Launches With Requirement For DC Rate Freezes. Storeys. https://storeys.com/canada-housing-infrastructure-fund-launch/

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