How can understanding the microeconomics of housing development contribute to the generation of more affordable housing?

This project examines how a better understanding of the microeconomics of housing development can contribute to the debate on how to generate more affordable housing. Proforma analysis is used to examine the underlying microeconomics of two potential multi-family residential housing developments at UniverCity on Burnaby Mountain, for ways in which development costs could be reduced or eliminated, thus increasing housing affordability. One housing development is based on two common policy-related mechanisms and the other is based on a Cohousing related model. This research reveals through proforma analysis that decreasing or eliminating soft development costs related to the commodification of housing, such as developer profit, marketing, and luxury finishings, can increase housing affordability more than policy-related mechanisms. This research also demonstrates that a better understanding of the microeconomics of housing development gives housing regulators and housing advocates the tools and language necessary to appreciate the fundamental costs associated with housing development, enabling them to work towards achieving greater housing affordability.