In an effort to tackle Vancouver’s chronic housing shortage, the City has unveiled a new strategy to deliver market rental housing on City-owned land. The initiative—led by the recently launched Vancouver Housing Development Office (VHDO)—aims to both increase the supply of middle-income rental homes and generate non‐tax revenue to fund critical infrastructure and community projects.
A New Approach to Housing Delivery
Announced on February 6, 2025, the strategy builds on the City’s broader Housing Vancouver Strategy, which sets an ambitious target of delivering 83,000 new homes over the next decade. At its core, the pilot project seeks to repurpose underutilized City-owned real estate through the Rental Housing on City-Owned Land – Public Benefits Pilot Rezoning Policy approved by City Council in June 2024. By converting City land into a platform for market rental housing, officials say the plan not only increases the housing supply but also creates a long-term, steady source of revenue that can help bridge the funding gap for other municipal priorities.
Transforming Pacific and Hornby
A central element of the new strategy is a rezoning proposal for a key City-owned site at the corner of Pacific and Hornby Streets. The proposed development will feature two towers: a 54-storey building and a 40-storey building. This is expected to deliver up to 1,136 rental units ranging from studios to three-bedroom apartments. This mix of unit sizes aims to serve a broad segment of middle-income households, ensuring that more families and individuals have access to quality rental housing in a central, amenity-rich location.
Balancing Market and Non-Market Solutions
While the pilot marks the City’s first major foray into delivering market rental housing on its own land, Vancouver officials stress that it complements, instead of replacing, the existing commitment to non-market, affordable housing. The VHDO, established at the direction of the Council, will continue to leverage partnerships with senior governments and manage housing delivered through the Vancouver Affordable Housing Endowment Fund (VAHEF). In doing so, the City aims to maximize housing delivery while ensuring that its real estate assets generate financial returns to help address the growing infrastructure deficit.
Generating Revenue and Public Benefits
The innovative approach extends beyond simply adding new housing units. By acting as both developer and landlord on select City-owned sites, Vancouver is exploring a novel method of generating non-tax revenue. These funds, secured through long-term revenue streams associated with the rental developments, could be reinvested in vital municipal projects—ranging from upgrading community amenities to addressing long-standing infrastructure needs. City planners note that this pilot program, which may eventually extend to up to five sites across Vancouver, represents a significant departure from traditional housing delivery models.
Monitoring
Proponents argue that transforming City-owned assets into housing not only helps meet the immediate needs of middle-income households but also sets a precedent for more sustainable, revenue-generating urban development. Critics have raised questions about the City’s dual role as landlord and regulator; however, officials emphasize that the pilot is designed as an experiment, which will be carefully monitored and reviewed before any long-term policy decisions are made.