Vancouver rental zoning shift tries to keep six-storey projects moving

Vancouver is preparing another round of rental-housing zoning changes, this time focused on making six-storey apartment projects easier to approve and finance. City staff say construction costs, financing costs, and softer achievable rents have made many rental projects harder to move from drawings to construction.

The staff report points to a practical tension in the current market. Lower rents and flatter home prices can help households in the short term, but they can also weaken the economics of new supply. If too many projects stall now, the city may face a tighter rental market when population growth and demand strengthen again.

The proposed changes would remove the RR-2C district, which currently requires 20 per cent of floor area to be below-market rental in order to reach six storeys. Staff recommend expanding RR-2B so most six-storey rental buildings can proceed without that below-market requirement. In transit-oriented areas, eight-storey rental buildings could still be allowed when 20 per cent of the residential floor area is secured below market.