Housing affordability in British Columbia remains a critical issue, with challenges that cannot be overstated.
As the cost of homeownership continues to rise, particularly for younger generations, innovative solutions and discussions have emerged, focusing on new housing models, policies, and technologies.
Techcouver sat down with James Innis of Sutton Group to learn how organizations like his are strategically positioning themselves to address these pressing issues through collaboration and innovation.
Sutton Group is dedicated to revolutionizing Canadian real estate management, promoting substantial growth for its agents, and improving the customer experience with innovative solutions.
James leads the operational and capital market strategies at Sutton Group, markedly influencing the company’s direction in technology-driven real estate services.
With over ten years of global experience, Innis’ operational and transactional acumen have played a pivotal role in securing transactions worth over $300 million, involving top-tier technology companies and investment funds across North America and Europe.
How would you describe the state of housing affordability in B.C.?
JI: I don’t think it can be overstated or hyperbolized the extent of the challenge of housing affordability in BC. While it’s true that home ownership has become more difficult for the younger generation, this has sparked innovative solutions and conversations around new housing models, policies and technology. Current trends show that while factors like housing starts, labour supply in construction, and cost of living pose challenges, they also highlight areas where focused efforts and strategic planning can make a big impact. By addressing these issues collaboratively, we hope to see a more balanced and accessible housing market.
Amidst economic shifts, how are leading organizations addressing the pressing issue of housing affordability?
JI: I’ll bucket my answer to this question into two parts, the first being government organizations that benefit from mandates, capital, and long-term horizons, but can suffer from political realities. The second is the private market actors, who will have different capital requirements, but benefit from speed of execution.
All levels of government, more so provincial and federal organizations given their resources, have put housing affordability front and center in their messaging and priorities. This has been manifested through increased capital to organizations such as the Canada Mortgage and Housing Corp. (CMHC) to put towards financing programs and regulatory changes, such as the egress stair design or fourplex as of right approvals in B.C. However, outside of specific organizations, such as BC Housing, they must use large policy hammers to drive outcomes.
The private market and related groups are at the front lines of creating housing and innovative solutions to help solve the challenges, while at the same time delivering results (i.e. profit, growth, value) for stakeholders. Indigenous groups have been a leader in this arena, pushing forward on bold initiatives in partnership with the government and other private market players. A number of other players in B.C., such as Intelligent City, are also working to pioneer new ways to deliver housing at scale using more sustainable materials.
You’ve spoken in the past about the importance of data transparency. How would changes to the landscape of data transparency improve the ability of B.C. residents to attain homeownership?
JI: At a high level, better data will lead to better decisions and better outcomes for current and prospective homeowners. Both on the micro level for homeowners and first-time buyers making decisions about where to buy and what the implications are relating to the cost of ownership, as well as on the macro policy side so that the organizations mentioned above can have better data to make better decisions. This will have a positive knock-on effect on homebuyers by having the right type of housing supply (i.e. 3 3-bedroom homes vs. studios) in the right locations.
What trends are emerging in data transparency practices, and how are they influencing the real estate market?
JI: A growing trend I am particularly interested in is verification and credentialization for professionals, individuals, and assets. Having clear, verified, and easy-to-share records of individuals (i.e. agents or lawyers), homeowners, and the asset itself can remove significant barriers to products and services, as well as improve the data needed to make more informed decisions. This underlying foundation and verification layered with the rapid advances in generative artificial intelligence will lead to an interesting period ahead for the real estate market.
What disruptive forces are driving the evolution of open banking, and how do you think this will impact B.C. and Canada’s housing market?
JI: Unfortunately, I think this one will be a further way out before we see a meaningful impact on the B.C. and Canadian housing market. Specifically around access and choice for financial products and services that are interoperable based on the real-time rail system that would come with Open Banking. The driving force is the consumer demanding better options and several leaders in the financial services sector who have been pressing for Open Banking for years.
With identity verification at the forefront of security concerns, what innovative solutions are reshaping the digital banking experience?
JI: Two examples that exemplify this increasing trend in our daily lives are the Apple Wallet and Google Wallet. These platforms seamlessly combine verification processes with top-notch security measures to facilitate smooth payment transactions. Another example is the development of online banking from Interac and the integration into the Canada Revenue Agency (CRA) to enable verification for tax operations. In addition, and specific to real estate in B.C., is the province’s land registry system. The Land Title and Survey Authority of British Columbia (LTSA) is a global leader in this field, and we’re fortunate in B.C. to have a progressive and forward-thinking organization leading the real property management for the Province.
How does Sutton’s strategic positioning allow it to shape conversations on key industry topics like housing affordability?
JI: Sutton is uniquely positioned as one of the few national, independent, Canadian real estate platforms with an established brand, distribution channel, team, technology platform and reach to be able to assist in bringing new solutions to market. This is in addition to informing homeowners, purchasers, sellers and other stakeholders who influence the flow in the Canadian housing market. We treat this role and responsibility seriously and have made it our mission to focus on bringing solutions that benefit the homeowner.
Can you share insights into Sutton’s collaborative efforts towards a more transparent and inclusive financial ecosystem?
JI: We are excited to be working with some amazing homegrown technology companies that are tackling various challenges, including affordability, access to data, and expanding ownership options for Canadians. We’re looking forward to announcing our first partnerships in this area. We are also collaborating with various levels of government to help inform the conversation, bring the right data to the decision-making process, and participate in the creation of new solutions. Whether that’s around verification, identification, or other areas that will improve the situation for purchasers and homeowners alike, our approach is very much collaborative versus disruptive in the industry. We’re happy to be working with various groups who share our belief in adding value to homeowners and tackling these big challenges, one in particular to call out would be rennie, with Bob Rennie and his team being an important catalyst and partner for us since the beginning. Though addressing housing affordability poses a significant challenge, the current innovations provide optimism that all Canadians can achieve their dream of homeownership.
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