In response to Vancouver’s ongoing housing crisis, the city is launching a bold new approach to increase market rental housing while generating long-term revenue.

Source: Western Investor, CTV News

Mayor Ken Sim announced a plan to develop 4,300 rental units on five city-owned sites, marking a shift in how Vancouver utilizes its land assets. This strategy, described as a “made-in-Vancouver” solution, aims to provide housing for middle-income earners while funding public amenities like community centers and affordable housing initiatives.

A First-of-Its-Kind Approach in Canada
Unlike traditional real estate projects where private developers lead the process, Vancouver is taking direct control as both landowner and developer. The Vancouver Housing Development Office (VHDO), established in 2023, will oversee the project, ensuring it aligns with long-term financial sustainability goals. This approach builds on the city’s success with non-market housing, which has already produced 13,000 units, with an additional 2,800 in development.

Where Will the 4,300 New Homes Be Built?
The five selected sites for the project span across key areas of the city:
Pacific & Hornby – Plans for two high-rises (54 and 40 storeys), adding 1,136 homes ranging from studios to three-bedroom units.
Main & Terminal – A current parking lot set for redevelopment.
Granville Bridge (north end) – A four-tower project aimed at increasing rental supply.
2400 Motel on Kingsway – A well-known site that will be repurposed for housing.
Granville & 67th Avenue (Marpole) – Another strategic location for new rental homes.

By leveraging these locations, Vancouver aims to increase rental supply while ensuring the city benefits financially from the developments.

Funding and Long-Term Financial Impact
The city’s Property Endowment Fund (PEF), currently valued at over $6 billion, will help finance the project. Established in 1975, the PEF was designed to generate revenue for the city through leased properties. However, the new strategy shifts focus toward maximizing returns by developing city-owned land directly.
City officials see this as an opportunity to balance housing supply, ensuring that both non-market and market rental housing are supported. With a rising infrastructure deficit, the revenue from these developments could be reinvested into renewing libraries, community centers, and public utilities.
Who Can Rent These Units?
Vancouver’s new rental homes will be targeted at middle-income earners. Households earning between $90,000 and $194,000 will be eligible to rent units. This initiative aims to support those who don’t qualify for subsidized housing but still struggle to find affordable market rentals.

A Bold Step into the ‘Big Leagues’
City officials acknowledge that this project comes with billions in costs and financing needs. However, they see it as a necessary step toward securing Vancouver’s economic and housing future.
“This is the big leagues of development,” said VHDO’s Director of Market Rental Housing, Brad Foster. “We aim to be bold with these assets because that’s what they’re here for—to generate long-term revenue for Vancouver.”

What’s Next?
Before breaking ground, the city must rezone the sites, finalize development partnerships, and ensure financing is in place. Despite these challenges, the project is seen as a transformational move that could serve as a model for other Canadian cities facing similar housing shortages.
By taking an active role in real estate development, Vancouver is setting a new precedent—one that balances housing needs with financial sustainability, ensuring the city remains livable for future generations.

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