🏗️ City of Vancouver to Create For Profit Real Estate Development Company

The City of Vancouver is taking a bold new approach to addressing the housing shortage — by becoming a for-profit real estate developer.

City Council is expected to approve the creation of a wholly owned municipal development company that will build and operate market rental housing on six City-owned sites.

This new entity will operate as an independent “government business enterprise,” similar to the Surrey City Development Corporation (SCDC) model.

💰 What’s Planned

The City will sell six development sites worth a combined $412 million to the new company, with the goal of creating approximately 4,000 market rental homes across mixed-use projects.

Key sites include:

• 625–777 Pacific St. (Granville Bridge north end): ~1,000 homes ($144M)

• Burrard/Hornby/900 Pacific St.: ~1,100 homes ($79.3M)

• 1510 Quebec St. & 1405 Main St. (near Science World): ($97.7M)

• 2400 Kingsway (2400 Motel): ~900 homes ($36.4M)

• Granville St. (Marpole): ($36.3M)

• Main St. (Riley Park–Little Mountain): ($17.9M)

The Vancouver Housing Development Office (VHDO) is already advancing rezoning applications for several of these locations.

🎯 Purpose and Benefits

The City aims to deliver more rental housing without increasing its debt load or risking its credit rating.
By operating through a separate company, it can:

• Secure its own financing

• Generate long-term, sustainable revenue

• Return profits to the City through dividends

• Help stabilize taxes and fund future infrastructure

These projects will primarily target working- and middle-income households seeking secure, purpose-built rental options.

🧭 Governance & Funding

• Startup funding: up to $8 million from the City’s Property Endowment Fund (over 5 years)

• Debt cap: $200 million

• Board: nine directors (six independent industry experts + three City representatives)

• The company may partner with private developers, generally maintaining a 50%+ ownership stake in each project.

🔍 Context

Vancouver’s move mirrors similar strategies across the region.

• Surrey’s SCDC pioneered this model in 2007, successfully completing major projects around City Centre.

• TransLink recently launched its own real estate division to redevelop underused transit lands, aiming to boost both housing supply and transit ridership.

💬 Realtor Perspective

This initiative raises important questions for our industry:

• How might this shift affect private development opportunities and land values?

• Could municipal-led for-profit development influence market pricing or competition?

• And most importantly — is this a model other cities will follow?

What are your thoughts?

📎 City of Vancouver: New Strategy for Market Rental Housing on City Land (Official Release)

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