Despite challenges such as interest rates, construction costs and labour availability, Vancouver’s development pipeline is expected to deliver a supply of new housing units that meets the provincial housing targets in the full five-year period.
The news comes as the city recently published its first Annual Progress Report on the Provincial Housing Target Order and Interim Housing Needs Report.
“Vancouver is stepping up to meet the urgent need for attainable housing across the region,” said Mayor Ken Sim. “By aligning our efforts with provincial targets, we’re paving the way for a vibrant, sustainable future. We’re proud to be delivering on our commitment to increase housing diversity and affordability, ensuring that residents can continue to thrive here now and for generations to come.”
Between October 1, 2023, and September 30, 2024, home builders completed 4,143 new housing units in Vancouver, representing 80 per cent of the year-one target set by the province. While the delivery of completed housing units over the past two years was impacted by macro-economic factors and the slowdown in housing starts during the COVID-19 pandemic, the City maintains a strong development pipeline.
Currently, there are about 58,100 housing units in the development pipeline, including 19,300 recently approved units and 13,700 units under construction. Additionally, 3,200 low-density units (such as laneways, duplexes and multi-plexes) are expected to complete within the five-year Housing Target Order period.
In total, home builders are projected to complete 33,700 units within the Housing Target Order period, exceeding the province’s five-year target of 28,900 units.
The city says the timing for construction and completion of housing units is influenced by factors beyond the control of local governments, such as the construction sector’s capacity, labour and supply costs, availability of funding and financing costs. Enabling the delivery of housing requires action from all levels of government levels and from industry.
Vancouver has seen high housing starts recently, with more than 7,200 units started in the past year, and is leading the region in housing construction. In the first half of 2024, more than 2,100 rental units were started, making up more than 57 per cent of regional rental starts. These units are expected to be completed in the next one to three years.
