The Okanagan Valley, known for its stunning landscapes and vibrant communities is facing challenges. Despite record low unemployment, the economy is faltering under this NDP government, and the wages in Kelowna are not keeping pace with the price of housing.
An article last week in Castanet highlighted a concerning trend: low wages are exerting downward pressure on Kelowna's housing market. People can’t afford housing in Kelowna with the wages that are currently offered. When this happens, people move farther away from their jobs to afford housing.
It's essential to address these issues head-on and explore viable solutions to ensure the Okanagan remains an attractive and livable region for all.
The lack of affordable housing options is not just a concern for low-income earners.
Middle-income families, young professionals, and even essential service workers are finding it increasingly challenging to enter the housing market. This situation not only affects individuals and families but also has broader implications for the community and economy.
How do you solve this problem?
To tackle the issue of low wages, we must first acknowledge the need for a more balanced approach to economic development. While attracting businesses and investment to the Okanagan is crucial, we must also ensure that the jobs created offer fair wages that reflect the cost of living in the region.
Government policies can play a pivotal role in encouraging businesses to offer competitive wages. Small businesses are the backbone of our local economy. Businesses can only increase wages when they have lower costs. Providing support and resources to help them thrive can lead to better-paying jobs and more sustainable economic growth.
The private sector needs to enhance productivity and innovation. Lowering taxes and reducing costs for businesses can free up capital for investment in new technologies and processes that drive efficiency and higher wages.
This current government has taken the opposite approach and downloaded a whole host of additional taxation on small and medium sized businesses. This means that these businesses have to either raise their prices to cover the additional costs (not always a viable option) or reduce their labour costs by hiring fewer people or paying lower wages. Some simply close or leave BC.
The Okanagan's economy requires a diverse array of jobs to sustain its growth and ensure economic stability. Key sectors needing attention include technology and innovation, healthcare, construction and trades, and tourism and hospitality.
The tech sector offers high-paying jobs and can drive economic growth. We need more tech startups and investment in tech education to build a skilled workforce.
As the population grows, so does the need for healthcare professionals. We need more doctors, nurses, and healthcare support staff. With the pressing need for housing, skilled tradespeople are crucial. This includes electricians, plumbers, carpenters, and general contractors.
The Okanagan is a prime tourist destination. Expanding this sector can provide numerous job opportunities, but wages need to reflect the cost of living.
While addressing wages is crucial, we must also focus on increasing the supply of housing to make it affordable. The demand for housing in the Okanagan far outstrips the current supply, driving up prices and making homeownership a distant dream for many.
Streamlining the approval process for new housing developments and reducing bureaucratic red tape can expedite the construction of new homes. This will help with the costs somewhat, but further reductions of the costs of levies, development cost charges as well as fees associated with new housing must also be done to lower costs further.
Exploring alternative housing models, such as co-housing, modular homes, and tiny houses, can provide more affordable options for residents. These innovative solutions can help meet the diverse needs of our community.
And we are already behind, with major headwinds ahead. The housing supply issue is still getting worse.
Canada needs 3.9 million more houses by 2030 to meet demand. This staggering figure raises the question: will we be able to build them? One major hurdle is the shortage of tradespeople, with many nearing retirement. We need to train more tradespeople but our own Okanagan College has not had any additional seats funded under the current government, limiting our ability to train the next generation of skilled workers essential for meeting our housing goals.
Addressing the challenges in the Okanagan housing market requires a collaborative effort from all stakeholders. Government, businesses, community organizations, and residents must work together to create a sustainable and inclusive housing market.
My question to you is this: Do you see the connection between the low wages or “sunshine tax” of the Okanagan and not being able to afford housing?
I love hearing from you and read every email.
Please email me at Renee.Merrifield.MLA@leg.bc.ca or call the office at 250-712-3620.
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