NowMedia video host Jim Csek welcomed Kelowna businesswoman and former MLA Renee Merrifield back into the studio for another episode of Beyond the Ballot.
In a recent KelownaNow live stream, the duo discussed a range of topics, including immigration, crime, parliamentary sessions but focused heavily on housing.
Merrifield warned that Canada's housing market is facing a "catastrophic" slowdown, driven by ill-timed government interventions that have deterred investors and failed to deliver the right types of homes.
Merrifield also highlighted the ripple effects of policies like Airbnb restrictions.
Merrifield, a developer with firsthand experience in the industry, pointed to a glut of small, high-priced units that were largely built with short-term rentals in mind but became obsolete after government crackdowns on platforms like Airbnb.
"We have a large number of smaller inventory units that are really not conducive to your average Canadian or even immigrant wanting to live in that unit, because they're just simply too expensive," she said.
She traced the issue back to developments planned seven to eight years ago, now coming to occupancy amid shifting regulations.
"Why do we have a glut of condos? Because the market doesn't want the type of condo that was constructed in that era," Merrifield explained.
Merrifield emphasized the need for housing that aligns with buyer preferences, such as "ground-oriented townhome/duplex product and single-family product," which she said the City of Kelowna has largely rejected in recent years.
"Cities need to take heed. This is not the type of housing that people want. It's not the type of housing that people are buying,” she said.
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She argued that the absence of new hotel towers in recent years stems from Airbnb's appeal to travellers, including medical patients, students, and temporary workers, which was "far more advantageous" than traditional accommodations.
However, provincial and municipal policies restricting short-term rentals have backfired, according to Merrifield.
In Kelowna, where she has been involved in building purpose-built rentals, vacancy rates have climbed to a healthy range of 3-5% but she cautioned it could rise to 9-10% if trends continue.
"We've got enough purpose-built rental that is accommodating right now," she said, but added that forcing Airbnb-zoned properties into long-term rentals has increased inventory, deterring new projects.
Merrifield described the development sector as being "on its knees," contrasting it with shorter downturns like the 2008-09 global financial crisis or the brief COVID pause.
"This is catastrophic. We have seen at least an 18-month slowdown... If you look at housing start numbers, we are way down from where we should be," she said.
She urged governments to rethink rigid prescriptions on property uses, allowing flexibility to meet market demands.
Merrifield praised aspects of purpose-built rental policies for providing stability, however, she warned that recent changes to CMHC financing as of July 18 could close the window on such projects.
The discussion also touched on how these housing issues intersect with tourism and family affordability.
Merrifield highlighted the high cost of travel in Kelowna, where a week at a Best Western could cost "several thousand dollars" for a family, leaving little for meals or activities.
"It really sabotages a family that wants to travel," she said, calling for a reevaluation of Airbnb bans to boost the economy without harming rentals.
The discussion underscored Merrifield's insights on housing underscored her view that unchecked government interference creates unintended consequences, from investor flight to stalled construction.
