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Not a mystery
Like the teenaged detectives in a Hardy Boys mystery, many on council believe they’ve figured out who the culprits are. And now they are going to follow the clues, track down the bad guys and bring them to justice.
And as in those stories, several of our intrepid council members seem bound to jump to the wrong conclusion—leading our young detectives down a series of blind alleys and through murky Komodo dragon infested swamps.
Weekend homes, vacation rentals and Airbnb accommodations are not the problem being described by these amateur sleuths. They are instead a symptom of another more basic problem—namely the dire lack of supply of new homes in Prince Edward County.
Everyone has stories of streets, once populated by families, now converted to weekend homes and vacation rentals—stories of homes that sit vacant all winter long, empty of consumers and school children. It is hard on our retailers, the sustainability of our schools and our sense of community.
But the impact of the sharing economy is not unique to Prince Edward County, nor will its solutions be found at Shire Hall or in the hamhanded regulations council may conjure. Ideally, in time, we will emulate a proven method from another community similar to ours. We will go slow—so as not to disrupt the livelihoods of the families who rely on this income to feed their families and children.
But let’s be very clear. Even if council regulated vacation rentals and weekend homes out of existence—even if this were possible—it would not change the fact that the County has become out of reach for many young families. Nor would it make living here more affordable.
There is a more fundamental economic force at work here.
There is huge demand to live in Prince Edward County. That is a good thing. And as the rest of rural Ontario drains itself of population— the County continues to attract people to live here. But there is precious little housing stock on offer. None of it can be considered affordable. When a home does come on the market, it is snapped up quickly.
According to data prepared by Treat Hull and Associates, home sales have climbed steadily since 2011. Over the same period, the inventory of homes for sale in the County has declined—even though the homes that do go on the market are fetching once-unimaginable prices.
It is a basic economic principle that when prices climb and inventory falls, prices rise. And they are.
The solution to a supply problem is to address supply—not flailing around looking to solve the issues emerging from the sharing economy.
What does that mean?
It means talking directly with the developers and builders who control more than 1,700 building lots in Prince Edward County. It means sitting down with them and working toward getting homes built.
Builders and investors are staying away from the County because it is more expensive and more time consuming to do business with Shire Hall than in Quinte West or Belleville.
This has to change.
It must happen sooner rather than later.
Competing jurisdictions in Quinte West, Brighton and Belleville are eagerly scooping up new home buyers attracted to the region by Prince Edward County’s brand. The marketing thrust for one astonishingly success residential development in Quinte West is based on the allure of Prince Edward County. It is a bonanza we have created and delivered to them. These jurisdictions are winning a growing tax base, more families and new waterworks customers.
But eventually the pressure will ease.
Chasing down this issue around the global sharing economy, assessing its impact on Prince Edward County housing and then devising rules and regulations governing who can and who cannot buy a home in Prince Edward County is, at best, a waste of time. At worst, council could impose a hardship upon families struggling to make ends meet.
Better that this energy be spent breathing new life into residential homebuilding in the County.
With new homes coming on the market in the County, the pressure on existing housing stock will ease. Will homes converted to vacation rentals return to become homes? That is harder to predict. But what is certain is that the current trend is headed the wrong way. Unchecked, more and more streets will give way to vacation rentals.
Let’s stop wasting time on the symptoms. We know what the cure is. Let us put our energy there.
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