The
Canadian population is becoming more urbanized. As urban density increases,
urban properties get smaller and property values increase uncontrollably.
We have lost the back yard, the basement, and the garage. These are places of experimentation where innovation is practiced, prototypes are built, and small businesses start. There is simply a shortage of space to create and engage in projects on a small scale. Renting space is prohibitively expensive, especially considering the limited means and disposable income most Canadians have after paying their high mortgages. Raising capital to pursue an idea is not a possibility for most people, nor should it be a barrier to pursue one’s concept or idea. Urbanization is a reality and we must adapt.
Outside of cities there are very large swathes of land that sit unused for generations. The use and division of this land is locked by land use regulation and subdivision legislation. These regulations limit how much the land can be subdivided, effectively creating a minimum entry point to buy land. That entry point is out of reach for most Canadians. The price per acre is affordable, but due to subdivision rules there is a minimum number of acres one has to purchase, so it becomes prohibitively expensive. In rare cases, if land is already subdivided into smaller parcels, then the price goes up to match the difficulty in subdividing, and it becomes too expensive as well. For example, let’s say I need 10 acres of land to start an organic farm, the average price per acre where I live is $3,000 which is affordable, but I would have to buy 160 acres to get the $3,000 price putting my minimum required investment at $480,000. If I bought the $160 acres, it would be virtually impossible for me to subdivide it and sell what I am not using and recover my costs. Because subdividing is so difficult and rare that same 10 acres subdivided already would cost around $230,000. This resource is frozen and unused because the barriers to entry are so high. One of the reasons the regulations are in place is to maintain the historical natural look and way of life of the Canadian country side. They are there in place to maintain the status quo. But we must adapt, evolve, and innovate to match our new realities and our population’s needs. How did maintaining the status quo ever become the default correct path. This is contrary to innovation, freedom and opportunity.
Canadians like myself long for the opportunity to own an affordable small parcel of land that would suit their needs and projects. The land parcels could be as small as an acre or two. Possible land uses include a small organic farm, a small orchard, a greenhouse operation, an eco-tourism site, A solar energy installation, a church retreat, an off grid cabin manufacturing site, a cooperative garden, a bio-diesel demonstration plant, a hay collection and export point of sale location, a place to walk your dog, a robotics testing site, an obstacle course track, an artist’s retreat, a specialized animal farm, just use your imagination.
If the land can only be bought and sold in large parcels, we lose the opportunity of utilizing that land as a resource. Through progressive legislation and by allowing subdivisions we can unlock the land as a frozen resource and create liquidity in that market. This would stimulate the economy, create jobs, enhance skills, create wealth, and stimulate innovation through opportunity. Canada cannot continue to primarily rely on large business for meaningful job creation. We need to encourage localized micro economies in our path towards innovation and financial security. We can achieve these goals responsibly and at the same time respect land use regulation and zoning, we already do this effectively in the city.
I encourage you to consider the matter presented above.
Thank You.
We have lost the back yard, the basement, and the garage. These are places of experimentation where innovation is practiced, prototypes are built, and small businesses start. There is simply a shortage of space to create and engage in projects on a small scale. Renting space is prohibitively expensive, especially considering the limited means and disposable income most Canadians have after paying their high mortgages. Raising capital to pursue an idea is not a possibility for most people, nor should it be a barrier to pursue one’s concept or idea. Urbanization is a reality and we must adapt.
Outside of cities there are very large swathes of land that sit unused for generations. The use and division of this land is locked by land use regulation and subdivision legislation. These regulations limit how much the land can be subdivided, effectively creating a minimum entry point to buy land. That entry point is out of reach for most Canadians. The price per acre is affordable, but due to subdivision rules there is a minimum number of acres one has to purchase, so it becomes prohibitively expensive. In rare cases, if land is already subdivided into smaller parcels, then the price goes up to match the difficulty in subdividing, and it becomes too expensive as well. For example, let’s say I need 10 acres of land to start an organic farm, the average price per acre where I live is $3,000 which is affordable, but I would have to buy 160 acres to get the $3,000 price putting my minimum required investment at $480,000. If I bought the $160 acres, it would be virtually impossible for me to subdivide it and sell what I am not using and recover my costs. Because subdividing is so difficult and rare that same 10 acres subdivided already would cost around $230,000. This resource is frozen and unused because the barriers to entry are so high. One of the reasons the regulations are in place is to maintain the historical natural look and way of life of the Canadian country side. They are there in place to maintain the status quo. But we must adapt, evolve, and innovate to match our new realities and our population’s needs. How did maintaining the status quo ever become the default correct path. This is contrary to innovation, freedom and opportunity.
Canadians like myself long for the opportunity to own an affordable small parcel of land that would suit their needs and projects. The land parcels could be as small as an acre or two. Possible land uses include a small organic farm, a small orchard, a greenhouse operation, an eco-tourism site, A solar energy installation, a church retreat, an off grid cabin manufacturing site, a cooperative garden, a bio-diesel demonstration plant, a hay collection and export point of sale location, a place to walk your dog, a robotics testing site, an obstacle course track, an artist’s retreat, a specialized animal farm, just use your imagination.
If the land can only be bought and sold in large parcels, we lose the opportunity of utilizing that land as a resource. Through progressive legislation and by allowing subdivisions we can unlock the land as a frozen resource and create liquidity in that market. This would stimulate the economy, create jobs, enhance skills, create wealth, and stimulate innovation through opportunity. Canada cannot continue to primarily rely on large business for meaningful job creation. We need to encourage localized micro economies in our path towards innovation and financial security. We can achieve these goals responsibly and at the same time respect land use regulation and zoning, we already do this effectively in the city.
I encourage you to consider the matter presented above.
Thank You.
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