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Vancouver's Ambitious Plan to Develop Market-Rate Apartments Aims to Cover Half of Municipal Budget

Strategic Insights

— 2 min read

Mayor Ken Sim's chief of staff, Trevor Ford, has outlined a long-term goal for Vancouver's ambitious plan to develop thousands of market-rate apartments on city land, with the potential to bring in enough money to cover almost half of the municipal operating budget. The plan involves building 4,300 market-rate apartments as a pilot project on five pieces of city land, with the goal of becoming a major landlord of for-profit rentals to households earning up to $194,000. The city's largest single landowner, Vancouver has over 700 properties in its portfolio, with about 230 of them home to 13,000 social-housing apartments.

Key Takeaways:

  • The city aims to build 4,300 market-rate apartments on five pieces of city land, with the goal of becoming a major landlord of for-profit rentals to households earning up to $194,000.
  • The long-term goal is to bring in enough money to cover almost half of the municipal operating budget, which is estimated to be $2.34 billion.
  • The city plans to phase its large developments so that there aren't too many units coming onto the market at once, with an estimated initial absorption rate of 40 units per month.
  • The city is counting on getting low-interest loans from the Canada Mortgage and Housing Corporation (CMHC) to reduce the overall development cost.
  • Critics have expressed concern that the city's plan does nothing for affordable housing for people in lower-income groups and that the sites should have a significant proportion of below-market rentals.
  • The city's current policy would exempt the five sites from paying community-amenity contributions, which would typically go into community benefits such as parks, heritage restoration, and cultural spaces.

Statistics:

  • Vancouver has over 700 properties in its portfolio, with about 230 of them home to 13,000 social-housing apartments.
  • The city's initial plan is to build 4,300 market-rate apartments on five pieces of city land.
  • The city's estimated municipal operating budget is $2.34 billion.
  • The city's long-term goal is to bring in enough money to cover almost half of the municipal operating budget.
  • The estimated initial absorption rate is 40 units per month.
  • The city is planning to phase its large developments, with the goal of not having too many units come onto the market at once.
  • The city is counting on getting low-interest loans from the Canada Mortgage and Housing Corporation (CMHC) to reduce the overall development cost.

Sources:

  • "Mayor Sim's Chief of Staff: Vancouver's Market-Rate Apartment Plan Could Bring in Billions," Vancouver Sun
  • "Colliers Strategy & Consulting: Vancouver Housing Development Office's Portfolio Strategy," obtained through a freedom of information request by the Globe and Mail
  • "Vancouver's Market-Rate Apartment Plan Criticized for Lack of Affordable Housing," Vancouver Sun

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