The Power of Community Capital: A Catalyst for Increasing Housing Supply in Canada
By Michael Stephenson, co-founder and CEO of addy
Canada is at a crossroads. The housing supply crisis is squeezing both affordability and availability, leaving many people, especially younger generations, wondering if homeownership is still within reach. The pressing need for innovative solutions has never been greater, and one powerful tool at our disposal is Community Capital.
Community capital—the collective investment of everyday people into real estate—has the potential to reshape the housing market by making real estate ownership accessible to all. It’s not just about financial returns; it’s about building resilient communities, increasing housing supply, and empowering individuals to take control of their neighbourhoods’ futures. At addy, we see Community Capital as the key to addressing BC’s housing shortage while providing opportunities for people to actively participate in the solution.
Breaking Down Barriers to Real Estate Investment
For years, real estate has been an exclusive asset class, dominated by wealthy investors and institutional players. The high barriers to entry, complex networks, and substantial upfront capital requirements have locked out most people from participating in this lucrative space. But Community Capital flips this dynamic.
By allowing individuals to invest as little as $1 in real estate, addy democratizes access to this traditionally exclusive market. This means that more people, regardless of their income level, can participate in real estate investments that have a direct impact on the local housing supply. Community capital gives ordinary people the chance to become part of the solution to the housing crisis.
Empowering Local Communities: Health for Health
A great example of Community Capital in action is a partnership we are entering into with a local Hospital Foundation (details to be shared soon!). Recognizing the growing need for affordable housing for healthcare professionals, the Foundation is in the process of enabling physicians to invest in real estate developments near the hospital. These developments are not just about providing returns for the physicians but also about creating housing solutions for new graduates entering the healthcare workforce.
By allowing physicians to invest in local real estate, the Foundation ensures that housing remains accessible for the very people who are integral to the hospital’s operation and the community’s well-being. This model strengthens both the hospital and the neighborhood, offering a unique solution to the housing needs of healthcare workers while allowing them to grow their personal investments.
This kind of project demonstrates the power of Community Capital to deliver win-win scenarios—solving local challenges while allowing individuals to take part in the economic benefits of real estate.
Housing Solutions for Families and Seniors: Ma and Pa’s Story
Community capital isn’t only about large-scale institutional projects; it’s also about personal stories. Take the example of a “Ma and Pa” couple living in a single-family home in Vancouver. They’ve spent decades in their beloved neighbourhood but, as they age, the costs of maintaining their home and property become overwhelming. Yet they want to stay where they are—aging in place in the community they’ve come to cherish.
With the help of addy and Community Capital, this couple can become a “Citizen Builder” and could redevelop their single-family home into multifamily infill housing. This transformation not only provides them with rental income from new units on their property, but it also increases the local housing supply in a high-demand area. By redeveloping their property into a multi-unit dwelling, they can generate income, make their home more affordable, and contribute to easing the housing crisis in their neighbourhood.
This type of community-driven solution allows families like Ma and Pa to continue living in their community while benefiting from additional income and creating more housing options for others. It’s a prime example of how Community Capital can be a lifeline for aging homeowners, ensuring they aren’t priced out of the neighborhoods they love.
Addressing BC’s Housing Supply Shortage
The housing supply shortage in BC is a complex issue, and Community Capital provides a powerful lever to help address it. When everyday people pool their resources, they can fund projects that would otherwise face delays or be difficult to get off the ground due to traditional financing limitations. This is especially crucial in areas where housing demand far exceeds supply, such as Vancouver.
For instance, by converting underutilized single-family homes into multi-unit properties, communities can create more homes within existing urban frameworks. This type of development helps meet the increasing demand for housing without needing to expand outward, offering a sustainable solution to population growth. Projects like these, fueled by local investments, can also ensure that new housing developments reflect the needs and values of the community.
Building a Sustainable, Community-Driven Future
The ripple effects of Community Capital go beyond increasing the housing supply. It empowers people to take control of the future of their neighbourhoods, instilling a sense of ownership and accountability. It also opens up new pathways for financial participation in real estate, creating a win-win for investors and communities alike.
At addy, we are committed to unleashing the potential of Community Capital as a path to help BC’s housing crisis. By providing everyday people with opportunities to invest in local real estate, we help accelerate the development of much-needed housing while creating new economic opportunities for those involved.
Conclusion
British Columbia’s housing crisis won’t be solved by any one solution, but Community Capital is a powerful tool that can make a significant impact. Whether it’s helping physicians near a Hospital invest in housing for new graduates or giving families the opportunity to redevelop their property into multifamily homes, Community Capital can increase housing supply while empowering individuals to shape the future of their communities.
At addy, we believe that real estate investment should be accessible to all, and by harnessing the power of Community Capital, we can build stronger, more resilient neighbourhoods across the province. Together, we can make a difference—one investment at a time.
Michael Stephenson is the CEO and Co-Founder of addy, a real estate investment platform that enables everyday people to invest in real estate for as little as $1. Through the power of Community Capital, addy is helping to democratize real estate ownership and contribute to solving the housing supply crisis.
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