What will get developers to build rental units?
Posted October 12, 2012 9:34 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – The City of Vancouver’s new affordable housing plan includes the construction of new row houses and townhouses near transit hubs, as long as the units are rentals or are sold at 20 per cent below market value.
But what will it take for developers to jump on the rental bandwagon?
Most developers favour building condos, because they’re where the profits are.
Jim Brander with the UBC Sauder School of Business says while the rental market is improving, developers would probably need some incentives to go into that direction.
“A big part of it is what the city will contribute. The city might make it possible for developers to build higher than they otherwise could, to give them other zoning benefits, to help provide infrastructure support to make building rental accommodation attractive under current conditions.”
Big developers haven’t entirely ignored the rental market in Vancouver. Take for example the Aquilini Developments plans for a new tower near Rogers Arena, where several hundred apartment units are in the works. In turn, the company wants reduced fees from the city.
