The days when a traffic snarl was nothing more than a minor scheduling inconvenience are long gone.
Now, that daily grind is hampering commerce, fuelling an outward migration of the labour force and, in some cases, shuttering some businesses altogether.
These are just a few of the worst-case scenarios Manning Elliott partner David Diebolt is hearing from his clients.
And it’s high time the interconnected problems facing families and businesses be addressed.
“You can’t ignore the businesses – you’ve got to be involving them in these discussions with the government,” Diebolt says.
Among those hit by the housing affordability crisis are people in their 20s and 30s who are working in the hospitality, tourism and service sectors. These are workers who would prefer to not incur a long commute to work through traffic.
Diebolt suggests businesses look at new and creative incentive programs to help retain employees.
“Employees who can afford to live in the communities they work in means they can contribute back to the local economy, be it through buying groceries, restaurants, or other local businesses,” Diebolt says.
The type of incentive Diebolt imagines is not unlike a federal program that’s been in place for decades, the Scientific Research and Experimental Development (SR&ED). These are tax incentives that serve as a springboard for Canadian businesses as they conduct research and development across any number of sectors.
The incentive can be used as a deduction against income or an investment tax credit that companies can utilize effectively year over year to help retain employees who would otherwise move on to other organizations closer to more affordable neighbourhoods.
Beyond the costs of housing, how land is used and zoned also requires a re-think, according to Diebolt.
He has clients, and has heard of other examples anecdotally, where a home was purchased as an investment purely to provide housing for employees.
“It’s easy for the landlord because the landlord just has one contract – it always gets paid and it’s never a problem,” Diebolt says. “It’s a great relationship and one of the best decisions my client has ever made because it’s all designed around people living in the community.”
Diebolt also envisions land use changes that could drastically alter how we collectively deal with B.C.’s aging population base. He proposes a scenario where laneway homes are used by care workers who can assist any number of people who are at retirement age in a given area.
“This is a way people can use or leverage their existing real estate without having to sell it off and have to move off into a care home,” Diebolt says. “Governments are actively engaging stakeholders in special project committees to have these discussions right now. There is lots more work to be done, but local businesses in those communities need to form part of this discussion.”
