City Notebook: The problem with lowering house prices is all the people who want the exact opposite

By COLLIN GALLANT on April 9, 2022.

cgallant@medicinehatnews.com@CollinGallant

There’s one crucial problem with house prices, which are quickly surpassing the weather as a thing to talk about (what was that on Friday? Hot? Cold? What?)

A winter of discontent about the cost of living bloomed in a spring garden with this week’s federal budget, which promises to tackle the issue as job No. 1.

But, the ultimately frustrating thing is it’s a problem people don’t really want to solve. Or at least solve to their disadvantage, which is sort of the same thing.

There is nary a politician out there who doesn’t shed tears for people blocked from home ownership, it’s a sign of good old fashioned progress, after all.

But, there’s not a homeowner out there who wants the value of their home to go down.

So the answer is growth, growth, growth, which is a recipe for a boom and bust that will leave everybody unhappy.

Think about it… has anyone ever said, “Boy, am I mad that foreign buyers are driving up the value of my largest asset!”?

Do home builders want to adjust their margins to build more affordable homes? Realtors and smaller commissions? Landlords and lower rents?

Real estate investing is also quickly becoming the top choice among passive investments for entrepreneurs looking for small business tax rate status.

If you know of a bank that wants to lend less money, not more, let me know.

Now, there are many, many people in the housing sector in it to make an honest buck for an honest day’s work, but they’re in business to stay in business.

So, they often suggest lowering costs, like regulations and building code requirements, or taxes… sound familiar?

They also want interest rates to stay low to bolster activity in the sector, even though they may also want Ottawa to “stop printing money” to cool general inflation, the largest part of which is housing.

Are we back at the beginning?

Budget bits

Another item buried deep down in the federal budget is Ottawa is ready to support interprovincial electricity grids, notably the well-known Atlantic Loop, as well as a first mention of something called “Prairie Link.”

A little digging finds out that’s the term for a proposed common market between Manitoba and Saskatchewan.

Hatter’s take note, though. The utility sector is basically the only thing booming in the region. Marrying Saskatchewan’s Crown controlled grid to Alberta’s wild-west market system would be a chore, but not half as hard as getting provinces on board with Ottawa having a say in a provincially held area like power.

Alberta politics

– Brian Jean was sworn in as MLA this week after winning a byelection in Fort McMurray. It should lead to all sorts of awkward moments in the legislature and for the United Conservatives, which begins a leadership review process this month. A sub-plot however is all the party’s MLAs can be challenged for nomination in the next general election scheduled for May 2023, so, will Jean be challenged?

– Still relatively little action on the local nomination scene, though big questions are being asked about candidates in the two southeast ridings around Medicine Hat. Chiefly, a UCP candidate is needed to face off against former UCP, current independent MLA Drew Barnes, for example. There was some thinking that Premier Jason Kenney’s visit last week was in part to drum up interest. Alongside him was apparent southern Alberta lieutenant Joseph Schow, who has lots of family in the Hat.

– First-quarter fundraising, which concluded March 31, should be known soon from Elections Alberta (a side note in the fine print here is the financial disclosure from the last municipal election is due to be released soon, too).

The actual fine print

Legal notices always provide food for thought… this week’s featured news is the payphone at the Patricia Hotel, north of Brooks, will be removed at the end of April.

As well, a quick scan of the Queen’s Counsel appointments released this week leave the Medicine Hat legal community wanting, yet again.

A look ahead

Staying with lighter fare, the city’s municipal planning commission will discuss the future of work at its Wednesday meeting. That is part of a plan to change how home occupation permits for home-based businesses are reviewed and allowed, brought forward last year after Hatters, like the whole world, rushed home to work.

It seems fairly straight forward, but commercial landlords and some neighbours get their nose out of joint about it, and for legitimate reasons.

One person zooming the day away in a converted attic seems innocuous, but what if that person is a contractor and needs to store materials and equipment? Or have a parade of clients who need parking?

Collin Gallant covers city politics and a variety of topics for the News. Reach him at 403-528-5664 of via email at cgallant@medicinehatnews.com