The City of Vancouver is entering the market-rental housing development business.

Mayor Ken Sim announced plans to develop market-rental properties on municipally-owned land, beginning with a proposed two-tower project at Pacific Boulevard and Hornby Street. The city will still own the properties after they are built in conjunction with industry partners and senior levels of government.

The two Pacific and Hornby buildings would stand 54 and 40 storeys and comprise up to 1,136 market- rental homes consisting of studio and one-, two- and three-bedroom units. 

The venture is believed to be the first of its kind in Canada. The Vancouver Housing Development Office will lead the city’s market-rental housing program.

The VHDO was created in 2003 to increase non-market and market housing supply while generating non-tax revenue for the city.

“The launch of the VHDO is a big step forward in making sure we have the right homes for the people who need them,” said Sim in a news release. “By putting our real estate assets to work and thinking outside the box on housing solutions, we’re setting up Vancouver for long-term success—so more families and residents can put down roots and thrive in our city.”

After completing the Pacific and Hornby property, the city intends to develop future market-rental projects on the southwest corner of Main Street and Terminal Avenue, where a parking lot currently sits. Future proposed projects include a four-tower development at the north end of the Granville Street Bridge, where four towers are proposed.

In addition, plans call for redevelopment of the historic 2400 Motel at 2400 Kingsway in east Vancouver and a property in the Marpole area near the south end of Granville.

The VHDO was created under the direction of city council.

The office’s strategy aligns with recommendations from the Mayor’s budget task force report, which emphasizes maximizing rental housing availability while generating financial returns to support infrastructure development and council priorities.

The city said it remains committed to develop non-market rental projects through the VHDO and will continue to work with stakeholders to maintain affordable-housing options under the Vancouver Affordable Housing Endowment Fund.

Pictured: City-owned property in east Vancouver slated to be redeveloped as a market rental-housing project.

Image: Booking.com