Housing and population boom coming to Langley, thanks to provincial budget

There will be many more scenes like this in Willoughby in the coming years, with the provincial government's removal of the property purchase tax on new homes values at $750,000 or less. The provincial budget will have a significant effect on Langley, particularly Willoughby. That’s because of how the province has chosen to react to the growing furore over housing unaffordability. It is not boosting the level at which the property purchase tax stays at one per cent ($200,000) and it is not boosting the exemption for first-time buyers (it only applies to property valued at a maximum $475,000). Instead, it is eliminating property purchase tax entirely on new homes valued at $750,000 or less. To make up for the income loss (and that’s what the government really cares about), it will  boost the property purchase tax to three per cent on properties valued at $2 million or more. While this boost in taxes on the wealthy is welcome and long overdue, the government’s refusal to do any other tinkering with the property purchase tax and little else on the housing front is far short of the response that is needed. The property purchase tax has been in place, virtually unchanged, since its introduction by the Social Credit government of Bill Vander Zalm in 1988. The government’s  resistance to change shows that revenue is far more important to it than moves to make it easier for younger people to buy homes, or incentives to build rental housing. Willoughby is the one area of Langley with significant land available for new housing. Detached homes were the primary type of housing built when Willoughby first started developing more than 15 years ago. In recent years, the trend has been towards townhouses. Almost every home sold in Willoughby in the past year or two has been valued under $750,000, so it is obvious that this exemption from the property purchase tax will be very good for builders, developers and realtors working in Willoughby. It will also be good for those who buy. They don’t have to be first-time buyers, and the only requirement is that they are Canadian citizens and/or B.C. residents and agree to occupy the home for at least a year. This will likely mean a heavier demand for homes in Willoughby, almost right away. There will be more pressure to rezone land for new developments. There will be other pressures as well. Schools will be even more overcrowded. The provincial government knows that there is a need for more schools but has been very slow in approving funds for new schools. R.E. Mountain Secondary, in particularly, is badly overcrowded. Then there is the issue of transportation. Willoughby is very badly served by transit. The thousands of residents who live along the 208 Street corridor have no access to transit. Thus families moving into townhouses and detached homes there need to have at least two vehicles. This puts pressure on that street, which is one lane each way for much of its distance. While there are buses along 200 Street, and the Carvolth Exchange is located at the northerly edge of Willoughby, most residents in the area cannot walk to a nearby bus stop to take transit. If the area grows dramatically, as it will likely do as long as housing prices keep skyrocketing in Vancouver and nearby cities and interest rates stay low, this transit deficit will continue to grow. Government-funded institutions like Langley Memorial Hospital will also feel the pressure of added population. There are no immediate plans for additions to LMH. In fact, FHA is planning to close 12 beds there, as part of a broader initiative. The property purchase tax exemption will also spur redevelopment in Langley City, where there have been a number of multi-family projects built in recent years. There will also be more development in Murrayville. Overall, the BC Liberal government’s changes to housing taxes will have a significant effect on Langley’s population, schools, transportation systems and hospital. Beyond that, the budget will have little effect on most Langley residents. Most will likely pay more in Medical Services Premiums, as the reductions announced are targeted primarily at single-parent families. Most B.C. residents pay plenty of taxes and user fees already, but there has been little relief on that front. My February column for The Langley Times