When Raven Woods, a master-planned development located in the Roche Point neighbourhood of Metro Vancouver’s North Shore, was originally built, it was one of the first businesses in North Vancouver to sell residential units on leasehold land.

Leasehold land, according to the government of British Columbia, is: 

A long-term residential leasehold is a form of homeownership where a person (the lessee or leaseholder) purchases from the owner of a building (the lessor or leasehold landlord) the right to occupy a premise for a long-term, fixed period (more than 20 years, and usually for 99 years, on first sale). This is sometimes referred to as “prepaying the lease.”

In the case of Raven Woods, the land belongs to the Tsleil-Waututh First Nation, who traditionally held the territory.

A rocky road to the shift in sentiment toward leasehold

Cal Pye, a realtor now with Babych Group Realty, was part of the original sales and marketing team for the project. Having worked in the area for over three decades, Pye has seen a shift in sentiment toward leasehold properties over the years.

But it hasn’t been a straightforward line getting there.

“The leasehold aspect has always been a contentious issue with those that don’t educate themselves about the details,” he points out. “But the confidence of the investment and the huge community spirit of Raven Woods has overcome the fears associated with the lease (from) when we started in 1994.

The buyers and their realtors who do some due diligence on the value and the community soon realize what a wonderful place (it is) to live while being comfortable with the ownership details.”

Leasehold land: A previous stigma preventing people from understanding nuances & benefits — but much of what’s left

Sarah-Jane Copeland, lands manager with Cheam First Nation, also contributes her thoughts on how people think about and work with leasehold land:

“People’s perceptions and understanding of leasehold land has changed a lot over the past decade,” she notes. Before, “(They) just wanted to kind of hide it, not really have it at the forefront.”

But Copeland believes that this previous stigma prevented people from truly understanding the nuances at hand.

“There are actually quite a lot of benefits to leasehold land as well,” she adds. “Usually there’s no property transfer tax, tax rates could be lower, it’s all different. But I think currently the reality of the situation is that First Nations land (includes) some of the only large land masses that we have left, especially since Metro Vancouver is very geographically constrained.”

‘Everyone has to start somewhere’ but education and partnership are keys to success

Copeland advocates for accessing and developing these large parcels of land to help address growing housing pressure needs, but to do so in a way that truly understands the needs of the Indigenous bands she works with.

The key word, according to Copeland? Partnership.

“I think the main thing is making sure that all parties involved have an understanding of the main goal you’re working toward and being respectful of the laws and policies that these First Nations already have,” she shares.

Aiden Mauti is a Toronto-based consultant with Creative Fire, a 100 per cent Indigenous-owned consulting and communications firm.

Like Copeland and Pye, he believes in the significance of both education and partnership when it comes to real estate sales and marketing practices for leasehold properties on Indigenous land.

For realtors who are interested in learning more but aren’t sure how, Mauti’s advice would be to just get started.

“It’s such a journey that there’s always going to be a critique, there’s always going to be a different opinion of what ‘good’ looks like,” Mauti says. “Everyone has to start somewhere.”

A journey that’s just starting

And while land acknowledgements and showing support on Truth and Reconciliation Day are major steps in progress toward national attention and recognition of Indigenous issues, Mauti believes that the journey for Canadians is just getting started.

“I think there’s just a lot more learning to happen on what reconciliation really means, beyond an orange shirt or even what we see in the industry of wanting to just hire more Indigenous people for the sake of it,” he adds.

The real estate development space has seen a rise of Indigenous-led projects, such as kʷasən Village and Sen̓áḵw in Metro Vancouver, and YZD in Toronto. The land’s history has been incorporated and welcomed, rather than avoided, in their ongoing sales and marketing efforts, with the Squamish nation calling the Sen̓áḵw project “reconciliation in action.”

Resurgence over reconciliation

Mauti reflects on the words of Kahnawà:ke Mohawk writer, researcher, policy analyst and political strategist Taiaiake Alfred:

“Taiaiake talks a lot more about resurgence over reconciliation,” he notices. “A resurgence of cultures — how could we enable the next generation of Indigenous people to support their own self-determination, for whatever that might look like.”

Something to consider both within the real estate industry and beyond.

Photo credit: aquilinidevelopment.com

Can housing affordability be restored? Is it just a matter of a few interest rate cuts and transit-oriented development? Reducing housing costs involves more than simply tweaking interest rates — it calls for a multifaceted approach that reflects the complexity of the problem. 

Lowering housing costs depends on several critical factors: the impact of government policies on the cost of homeownership, the necessity for community-focused strategies in new developments, the crucial role of collaborations between government and the private sector in enhancing quality of life indicators like housing accessibility and the embracing of proptech (property technology) advancements and data-driven decision making in real estate. 

Government participation in strengthening Canadian communities 

Developers want to create vibrant communities across Canada and support the needs of a growing national population. This is particularly relevant in Canada’s key metropolitan regions — Vancouver, Montreal and Toronto — as they receive the bulk of newcomers in the country.

By collaborating with developers to lower development and construction costs, municipalities and regional districts in British Columbia can significantly boost the financial viability of projects for developers. This strategy can open the door to new opportunities for building vibrant communities outside metropolitan areas where land is more readily available, while also stimulating growth in urban neighbourhoods that have seen limited changes.

The difficulty in managing costs can be seen in Vancouver’s 15-month delay in obtaining permits, which can substantially increase developers’ costs. This not only raises interest on project financing as funds remain idle but it also allows inflation to drive up material and labour costs. Additionally, this extended waiting period often leads to resource misallocation, potentially resulting in penalties for rescheduling construction crews and equipment. These disruptions can have a ripple effect, impacting broader financial plans and cash flow management.

Government policy is another crucial ingredient, as zoning regulations, building codes and taxation can significantly influence the availability and cost of housing. Policymakers must work closely with industry stakeholders to foster an environment that promotes sustainable growth and affordability.

Examining the impact of the new 30-year mortgage rule

However, policy for the sake of policy is not the answer. Take the new 30-year mortgage rule that the federal government introduced for first-time buyers. While this can increase the borrowing power of first-time buyers, the reality is that this will not impact the vast majority of Canadians who need relief when it comes to buying a home. Meanwhile, it does serve as an effective political soundbite. 

In larger markets like Vancouver and Toronto, a 30-year mortgage stretches payments over three decades, leading to higher interest costs for homebuyers in the long run despite immediate payment relief.

We must engage with local and provincial governments to ensure that both homeowners and developers are actively involved in decision-making processes.

Notably, developers in the United States have an easier time accessing information, permits and data. For example, in Seattle, developers who have applied for a development permit can obtain the permit in a minimum of 21 days. In contrast, in Canadian cities like Vancouver, permits are obtained within an average of 15.2 months. Our current high borrowing costs and extensive time spent waiting for permits ultimately get passed down to homebuyers.

Embracing proptech advancements alongside new policies 

Government policy alone won’t move the needle when it comes to helping first-time buyers get into their dream homes. But new policies combined with technology and innovation have the power to revolutionize the real estate industry, offering new ways to reduce costs and enhance efficiency. 

Proptech advancements, such as virtual reality tours and AI-driven property management systems, streamline operations and improve customer experiences. This goes hand in hand with innovations to speed up the approval process and grant building permits at the municipal and provincial levels. 

These technologies reduce the time and cost associated with buying, selling and managing properties. Additionally, the use of data and analytics allows for more informed decision-making, helping developers and policymakers identify emerging trends. 

Leveraging these technologies, alongside government programs and incentives designed to retain engineering and tech talent within Canada, will position us as leaders in innovation. This strategic approach will enable us to break new ground in the realm of development and affordable housing.

Meeting housing needs and strengthening Canada’s future 

Addressing the high cost of development and homeownership in Canada requires more than just lower interest rates. Local governments need to foster public-private partnerships, reassess zoning laws and incentivize affordable housing development. This goes along with embracing technological innovations that can enhance transparency and efficiency, while a proactive approach to managing real assets ensures long-term value and cost-effectiveness.

Governments at all levels should also be exploring strategies to streamline their cost structures, as current systems and processes lag behind the advanced technologies being adopted worldwide.

In addition, succession planning can provide stability and continuity in housing strategies. These measures collectively encourage smarter policymaking and will work to increase affordable housing supply, resulting in stronger Canadian communities.