The numbers are shocking.

30% of the cost of any new home in Kelowna — be it a tiny condominium, standard townhouse or nice single-family home — is made up of municipal, provincial and-or federal taxes, fees and levies.

"Governments tax housing like it's a vice, such as alcohol or tobacco," Cassidy deVeer, executive officer of the Kelowna branch of the Canadian Home Builders' Association, told KelownaNow.

"We'd like to see those taxes, fees and levies cut significantly."

For instance, the federal government should eliminate the 5% GST on all new housing and the City of Kelowna should slash its hefty development cost charges.

deVeer admits some taxes, fees and levies are necessary to bring streets, water and sewer to new homes and build parks in new neighbourhoods.

But, not the exorbitant levels currently being charged.

The resulting unaffordability and high prices mean Kelowna's home construction activity has almost ground to a halt. 

deVeer isn't just venting.

She and Kelowna association president Krista Paine, who heads up Ian Paine Construction & Design, have shot off an open letter to Kelowna Mayor Tom Dyas and council.

And they want the city to take immediate action.

'We built Kelowna through crisis (the COVID pandemic) — now we are a casualty,' is the title of the letter.

The letter goes on to say the home building industry locally is under "extraordinary strain" and "some of our members have not pulled a (building) permit in over two years."

"When builders stop building, the ripple effect is immediately felt in our local economy, where we are a top four employer and in many years, outperform tourism," said deVeer and Paine in the letter.

Photo credits: Above, Ernie Journey on Unsplash, below, KelownaNow fileHome building in Kelowna has almost come to a stop because construction has become too expensive and homes too unaffordable.

The Kelowna branch of the Canadian Home Builders' Association is demanding the city do four things:

1. Recognize that ownership housing is not the enemy of affordability, it is part of the solution.

"The three levels of government have done absolutely nothing to help home ownership in many years," said deVeer.

2. Reduce development cost charges, especially for small-scale projects.

deVeer pointed out that development cost charges can be as high as $50,000 per housing unit whether it's a small condo or a big house.

The parks portion of the charges is $14,000, which deVeer is "most frustrated with."

She said the city has a development cost charges reserve of $208 million.

"Reinvest that money and reduce development cost charges, ideally with some sort of reduced per square foot levy rather than per unit," she said.

3. Evaluate the cumulative impact of recent zoning and servicing decisions.

4. Align municipal Energy Step Code and Zero Carbon Step Code requirements with provincial minimum standards and stop any additions until homeownership affordability measurably improves.

"There is no appetite for net zero (construction)," said deVeer.

"It's too expensive."

Photo credit: Samuel Cruz on UnsplashHomeownership is still the dream of most Canadians, yet many say it's unattainable.

deVeer and Paine admit rental housing is important and Kelowna has done a lot to increase its inventory of apartments for those that need and-or want to rent instead of buy.

"A healthy housing market must include attainable ownership options," they said in the letter.

"Young families in Kelowna still want a front door, stability and the opportunity to build equity. 88% of Canadians under 45 still aspire to own a home. Yet, only 29% believer that dream is realistically within reach. And, fewer than one in five Canadians believe governments are doing enough to address homeownership affordablity."