Explainer: City of Vancouver announces progress on meeting B.C.’s housing targets

The City of Vancouver announced in November that it is expecting to meet housing targets set out by the B.C. government.

Following the province’s Housing Supply Act, which came into effect in 2023, the province moved forward last fall in issuing housing target orders to 10 municipalities, which included the City of Vancouver.

The Provincial Housing Targets Order called for Vancouver to build 28,900 net new housing units over five years from Oct. 1, 2023, to Sept. 30, 2028.

The provincial goal for Vancouver for the first year was 5,202 new housing units. Home builders in the city ended up completing 4,143 new units between October 2023 and September 2024, which is 80 per cent of the one-year target.

“By aligning our efforts with provincial targets, we’re paving the way for a vibrant, sustainable future,” Vancouver Mayor Ken Sim said in a press release. “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.”

There are about 58,100 housing units in the development process, which includes 19,300 recently approved units and 13,700 units under construction. Overall, the city projects builders to construct 33,700 units within the five-year period outlined in the B.C. government’s order, which is 4,800 units more than what the province called for.

The City of Vancouver notes that action from all levels of government and the industry are required to deliver on the housing requirements, with factors beyond control of local governments including labour and supply costs, availability of funding, and financing costs.

“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,” the City of Vancouver’s press release reads.

Over the last year, about half of the newly built multi-apartment and townhouse units have two or more bedrooms, while 28 per cent are single-bed units and 22 per cent are studios, as per the city’s interim housing needs report.

Following this first year, 12 per cent of the completed rental units will deliver rents at or below housing income limits (HILs), which represents the maximum gross income household income eligible in many affordable housing programs, according to BC Housing.

The Canada Mortgage and Housing Corporation (CMHC) reports that the city ranks first in the Metro Vancouver region in housing starts in the first half of 2024. 

Vancouver also leads the region’s top 10 municipalities in the number of housing units built for rent. Almost two-thirds of the completed housing in the City of Vancouver were rentals, which amounted to 2,618 units.

“[Seventy-eight per cent] of all housing units approved in 2023 were purpose-built rental or laneway units, signaling a further shift toward rental completions in upcoming years,” the city’s interim report reads.

The provincial government also requires local governments to determine their housing needs. Vancouver’s report included an estimated housing need of 56,228 new units for a five-year period from 2021 to 2026 and 182,947 units for a 20-year time frame from 2021 to 2041. The needs identified by the city included addressing homelessness, anticipated growth, and demand, among others.

The city has also identified a need for housing near transportation infrastructure to support walking, cycling, public transit, and other forms of transportation.

The report also highlights various actions the City of Vancouver has taken to grow the housing supply and lower housing needs, such as its plans for the Downtown Eastside (DTES) and Rupert and Renfrew Station area.

“Vancouver is stepping up to meet the urgent need for attainable housing across the region,” Sim said in a release.

For more information about B.C.’s housing targets for Vancouver, visit www.vancouver.ca.