Alec Wilson’s recent article in The Varsity, “U of T lacks affordable, quality residences” speaks to a very serious issue for the University of Toronto. Long gone are the days when the neighbourhoods surrounding St. George Campus could absorb most student housing demand beyond what the dorms could provide, from what was then a much smaller student body. The development industry has no interest in delivering affordable housing while it continues to exploit demand with the glass condo tower – a socially and environmentally irresponsible product in a market with no alternatives. The upshot is students living far away from campus and enduring ever longer commuting times, leaving less time for studies and the sorts of social interaction that are the essence of a university education. Alternatively, they and their families can sink even more money into the cost of higher education by paying exorbitant housing costs to live closer to school. So what can be done?
Looking at all of the money that was lost to bad investments by the University of Toronto’s pension fund managers (UTAM) since 2000, and understanding just how safe an investment in student rental housing could be at the University of Toronto, there are a lot of good reasons to go down this road.
Genuine Need – Why invest in things that don’t do anything for your immediate community? High quality housing is conducive to learning outcomes as anyone who has ever lived in a damp moldy basement can attest. Our students need a decent place to live. Pension funds need a safe, secure investment that isethical. As a pension fund subscriber, I want to do the right thing and help those in need.
Leadership — U of T should lead by example, and develop high quality housing that is affordable and contributes positively to the urban environment. Glass towers are not the answer. Mid-rise buildings that fit into the existing fabric of neighbourhoods can demonstrate walk-up urbanism with a social conscience. Toronto is badly in need of leadership on this front and U of T has a unique opportunity for a positive contribution to our city.
Sustainable Yield — Getting a safe, modest return for the next century on a real estate investment is economically sustainable for U of T pensions and the student body. Private sector development is gouging Torontonians with inflated prices for substandard products, and governments have no appetite for addressing affordable housing across Canada. Just think of how much student housing could have been developed with the money that was lost by the U of T pension funds over the past decade. Let’s invest in ourselves and our common future – pensions and student housing are symbiotic.
Stewardship — New multi-unit residential housing developments in Toronto use as much, and often more, energy and water than their 1960s predecessors. Glass boxes are not durable and they tend to leak within a decade incurring huge maintenance, repair and replacement liabilities. Nobody wants these all-consuming monstrosities to dominate established neighbourhoods, and besides, the unit layouts do not reflect the social realities of 21st century student housing. As a culture of cultivation and reflection, but also innovation, U of T must become the exemplary steward of amazing student housing that is socially and environmentally responsible.
Equity — My generation enjoyed a phenomenal experience as University of Toronto students. Diverse and affordable housing within walking distance of campus was widely available, making for a less stressful and more healthful lifestyle while leaving lots of time for student life. As we grew the University, nobody gave proper thought to how the student quality of life was being eroded. Pension funds afford the means to restore intergenerational equity in the form of accessible, affordable student housing that doesn’t cost the earth.
The important thing is to start now and explore the possibilities. After the hundreds of millions of dollars lost to bad investments, it would not be unreasonable for the U of T pension funds to consider a pilot project with a limited scale just to test the waters. If the U of T is all about education and innovation then we should walk our talk and advance the student housing agenda. In the process, U of T can show the private sector how to deliver high quality, affordable housing that fits into the local community without excessive profiteering. Other pension funds can learn from our experience and divert their investments to where we live.
The University of Toronto is at the cusp of some major decisions that will see it either appropriately adapt and flourish, or become unsustainable on every level that matters. Where our students live, how that housing is integrated within the campus and surrounding neighbourhoods, and its ecological footprint all matter, and will gain importance as the Toronto region grows. U of T pension funds have limitations, but our collective ambitions for student housing should remain boundless.
Ted Kesik is a Professor of Building Science at the Daniels Faculty of Architecture, Landscape, and Design
