The Pulse: Nov. 17, 2023

Investors own nearly half of all purpose-built rental buildings in Edmonton, and as National Housing Day approaches, housing advocates warn that the city's lauded affordability could disappear if governments do not act on this fast-moving trend.

Less than 30 years ago, estimates put the amount of purpose-built rental buildings that real estate operating companies (REOCs) and real estate investment trusts (REITs) owned in Edmonton at just 1.6% of all such buildings. But that proportion reached 47% by 2022, indicates a recent study by the Affordable Housing Solutions Lab, a partnership between the City of Edmonton and the University of Alberta. That's one of the highest percentages in Canada.

The study found the proportion of buildings that REITs and REOCs own increased by 22% between 2019 and 2022 alone. Many do not expect this trend to stop rising, either. The Western Investor, for example, said Edmonton's high immigration numbers and low vacancy rates make it the top city in the country for real estate investors.

Treating rental buildings as investments, judged primarily on their ability to generate profits for investors, is a change in thinking that many have framed as the "financialization of housing." Some, such as the Canadian Centre for Housing Rights, suggest this trend is partly responsible for the loss of affordable housing stock.

To mark National Housing Day on Nov. 22, the Edmonton Coalition on Housing and Homelessness is presenting a screening at Metro Cinema of the documentary Push, which examines financialization's effect on housing affordability around the world. Leilani Farha, the former UN special rapporteur on housing, will present updates on the phenomenon via a video call, and Eric Rice will be on hand to discuss the Edmonton Affordable Housing Maintenance Fund, which he recently created through the Edmonton Community Foundation.

Edmonton housing advocates say the financialization of housing is tied to increases in rent. In 2006, 80% of rental suites in the Edmonton region went for less than $999 a month. Now, the average one-bedroom apartment goes for $1,284 in Edmonton, according to the October summary from Rentals.ca.

There is no concrete proof that the financialization of housing is a cause of increased rents, and tenants have to pay rent regardless of whether the unit is owned by a large entity or by Bill and Martha down the street. But Jim Gurnett, spokesperson for ECOHH, said most local landlords have an incentive to provide high-quality housing at a reasonable price that large financial landlords don't have.

"One of these entities can say, 'We're going to increase rent by 20% or 25%, or we're going to clean out this building of its current renters and renovate it for higher-end rental units,'" Gurnett told Taproot. "They can do those things without really worrying much about it as part of their big financial plan. The end result is that we're pushing people, at the worst, into homelessness, or into lower quality housing as the pool of what's available shrinks."

• The city drew criticism for an Oct. 31 notice inviting news outlets to preview the Valley Line Southeast LRT. In the notice, which Postmedia reporter Lauren Boothby shared on social media, the city stated that media were required to seek permission before reporting, filming, or conducting business on Edmonton Transit Service property to "ensure media activities will not interfere with our ability to provide safe and effective service." In a letter to the city, the Canadian Constitution Foundation called the policy "unconstitutional" and an attempt to prevent "reporting on important matters that ETS likely prefers media not cover." The city called it a "misunderstanding," saying the rules only applied to the opening day of the Valley Line and that no broader policy exists. However, Postmedia reported that multiple Edmonton journalists said they have been required for years to seek permission to report on ETS property.
• Edmonton Police Service Chief Dale McFee said the city needs a coordinated approach to take down homeless encampments because of the safety risk they pose. In early November, two people died, and a third was seriously injured following a series of encampment fires. Police said seven people died in encampment fires last year. "The encampment strategy needs to be, we need to get enough resources to actually take them down and then figure out if those that want to be housed can be housed," McFee said at an Edmonton Police Commission meeting on Nov. 16.
• The Edmonton Police Commission announced John McDougall as the third provincial appointee to the commission since the UCP government updated legislation in 2022 allowing it to select up to three members of local police commissions. McDougall has been a member of the Edmonton Police Commission since 2018 and previously served as its chair. His term will last from Jan. 1, 2024 to Dec. 31, 2026.
• The city announced a series of major traffic changes related to the Yellowhead Trail Freeway Conversion project. As of Nov. 16, the Yellowhead Trail and 127 Street intersection has been affected, with eastbound traffic on the Yellowhead being redirected to a new detour lane, removing the left-hand turn to travel north on 127 Street. The city has also opened new one-way eastbound and westbound service on the 156 Street to St. Albert section of the project, and two lanes have reopened in the area of the Fort Road Widening project.
• We Belong in Jasper Place, a community-driven initiative supported by the Stony Plain Road Business Association, is seeking to strengthen community bonds in central and west Edmonton. The group is offering one-time funding up to $5,000 for community members to develop pilot projects and events that promote a sense of belonging in the Jasper Place area. Multiple proposals are allowed, and 10 projects will receive funding. The application deadline is Nov. 26.
• The city launched two new grant programs intended to advance its Community Safety and Well-being Strategy. More than $2.6 million is available through the Early Intervention and Intervention Grant Program, which provides one-time funding for intervention and early intervention programming. The Collaboration Grant Program is intended to enhance or create new partnerships that support the goals of the city's strategy. More than $1.34 million in funding is available, of which at least $350,000 will go to ethnocultural organizations or anti-racism efforts. The deadlines to apply for the grants are Jan. 10 and Jan. 24 respectively. The city asks interested applicants to pre-register if they'd like to attend virtual information sessions about the grants on Nov. 29 and Dec. 13.
• Students at the University of Alberta and MacEwan University are highlighting food insecurity among post-secondary students. Erin O'Neil, executive director of the U of A Campus Food Bank, says it used to serve around 200 people a month but now regularly serves more than 1,000. Gabriel Ambutong, president of the Students' Association of MacEwan University, said demand on the school's food hamper program, the Pantry, rose 61% in September this year compared to last. The issue is exacerbated by inflation, high grocery costs, and rising educational costs, including "exceptional" tuition hikes at the U of A in 2022 following the province's post-secondary cuts. Earlier this year, the province announced tuition caps for domestic post-secondary students, preventing schools from increasing tuition by more than 2% annually, but tuition for international students remains unregulated.
• Pharmacies across Edmonton are reportedly shortages of some medications, including codeine and Ozempic, with some needing to limit how much they dispense. Pharmacy manager Ghada Haggag told Global News the situation is the worst she's seen in 23 years, adding the backlog can mostly be attributed to manufacturing shortages. Novo Nordisk, the company that makes Ozempic and Wegovy, said the drugs will be difficult to get as the new year approaches.
• Chrislain Eric Kenfack, a man from Gatineau, Quebec, has filed human rights complaints against the RCMP and the Canadian Air Transport Security Authority, alleging he was racially profiled and beaten by officials at the Edmonton International Airport in April. His case is being supported by the Red Coalition, a Montreal-based firm that advocates for the end of racial profiling and discrimination in Canada.
• Alberta Municipalities, which represents 265 municipalities across the province, is encouraging citizens to speak up about the province's proposed changes to local elections, including making political parties more important at the municipal level. Earlier this year, Alberta Municipalities commissioned a Janet Brown opinion poll that found most Albertans believe heightened party lines in municipal politics is against the best interests of the community and would make governments more divisive. The UCP government is seeking feedback on its updates to the Local Authorities Elections Act and the Municipal Government Act through two surveys, which are open until Dec. 6.

AGNT, an online marketplace that makes it easier for event organizers to book entertainers, won the Edmonton finale of Startup TNT's Investment Summit VIII.

The app allows customers to browse for, book, and pay talent, while agents and artists can manage their careers from the AGNT Pro side, co-founder and CEO Viet Nguyen said in his Nov. 16 pitch to investors before a live audience at the Alberta Machine Learning Institute on Nov. 16.

"You can kind of look at AGNT as a way for artists to manage a career, but we can also see data on our end and watch artists as they grow," Nguyen said.

AGNT's first iteration gained over 12,000 users in its first two months while only focusing on a niche DJ market in Alberta. Nguyen said the company has a waitlist of 2,000 users for its next edition, and the first two weeks of beta testing assisted with over 35 bookings.

Nguyen is a partner and talent buyer with Boodang Music Canada, where he has worked for 23 years. He was responsible for bringing Tiesto to Edmonton before he became a global superstar.

"When I was in my 20s, Tiesto was not a big DJ," Nguyen said in a Q&A after his pitch. "You grow with them, and that's sort of how AGNT's gonna work as well."

AGNT will focus next on reaching out to regional brand ambassadors like liquor stores, launching the app on iOS and Android, and expanding into the Swedish market in the first half of 2024.

The other Edmonton finalists were AllSeeing, a radio-sensing company with applications in health sciences; Drift Golf, a management tool for golf courses; Kid-Drop, a shuttle service for busy parents; and Roshan Water Solutions, which does rapid tests of water quality.

Startup TNT held investment summits in three other locations at the same time. RetinaLogik won in Calgary; fidu won in Saskatoon; and FeedFlo won in Winnipeg. Each winner will receive at least $150,000 in angel investment.

Photo: Viet Nguyen, co-founder and CEO of AGNT, won the Edmonton side of Startup TNT's Investment Summit VIII on Nov. 16. (Startup TNT/YouTube)

This weekend will see some winter light-ups, the most exciting eight seconds in sports, input into the future of Alberta, an AGM for the two-wheeled crowd, burlesque with a side of barbecue, and a talk by a soccer hero.

• Nov. 17, 4pm: Light Up the Night — Crossroads Winter Festival in Inglewood
• Nov. 17, 5pm: Opening night: Borealis Lights Christmas Drive-Thru Lighting Display at the St. Albert Kinsmen RV Park
• Nov. 17-18: PBR Canada National Finals at Rogers Place
• Nov. 17-19: Parkland Institute's 27th Annual Conference: Alberta at the Crossroads — Building the World We Want at the University of Alberta Engineering Teaching & Learning Complex and online
• Nov. 18, 2pm: Bike Edmonton Annual General Meeting, presented online
• Nov. 18, 7pm: House of Hush Burlesque presents Smoke Show at the Smoke BBQ Bar
• Nov. 19, 2pm: Forward Thinking Speaker Series: Christine Sinclair: Scoring Success, presented by the Edmonton Public Library at the Edmonton Convention Centre

Find even more things to do in the Arts Roundup and the Food Roundup.

Photo: Professional bull riders will compete for over $250,000 in prize money in the PBR Canada National Finals at Rogers Place. (PBR Canada/Facebook)