Local governments in Metro Vancouver are starting to take a more planned approach toward
approving new affordable housing, including financial incentives for developers to build rental
housing instead of condos. Ultimately, a stronger public presence is needed as developers are not going to build new housing stock that is truly affordable for low- to middle-income households, at least not anywhere near the scale needed.New investments from the BC government, 33,700 units over 10 years promised in the 2018 BC provincial budget and, to a lesser extent, funds from the federal government’s National Housing Strategy point to a modest revival of public housing investment, but these investments must be ramped up. This missing upfront capital is essential as the stream of rental income from new housing eventually repays the initial investment. The housing starts have never been higher in the City of Vancouver or the Metro Vancouver region. In Metro Vancouver, starts of 27,914 in 2016, 26,204 in 2017 and 23,404 in 2018 rank as the region’s top. However, some two-thirds 65% of housing starts in 2017 .

A stronger public presence is needed as developers are not going to build new housing stock that is truly affordable for low- to middle-income households, at least not anywhere near the scale needed.

Some modest new public investments in affordable housing from the BC and federal governments are a welcome addition and need to be ramped up. The assumption that private-sector developers should take the lead in the development of housing needs to change. Indeed, there’s a strong case to be made for a more overtly public planning model, including public land assembly, project financing and rental housing development, to cut out the middleman and achieve some economies of scale for the large build-out we need.