City Hall's 12th Avenue entrance

Vancouver supports delivery of more than 20,000 homes amid challenging construction conditions

December 10 2025 –

Today, Vancouver City Council approved with amendments a suite of actions (758 KB) to make it easier and less expensive to build homes with the goal of supporting more affordable housing for all residents.  

Updates will reduce development costs and keep more housing projects moving forward during a challenging construction environment. Together, they are expected to improve the feasibility of more than 250 active projects, representing over 20,000 new homes.  

“Vancouver is facing some of the most challenging construction conditions we’ve seen in years,” said Mayor Ken Sim. “If we want more homes that people can afford, we need to do our part to reduce development costs. By making these changes now, we’re helping ensure that much-needed housing and construction can move forward, creating stability for residents and for our city’s long-term future.” 

Challenging construction environment 

Vancouver continues to see strong interest in new housing, with many projects advancing through the early stages of the development process. However, construction costs are rising faster than achievable rents and sales prices, creating a gap that puts many projects at risk of stalling or being cancelled when they reach the building and financing stage. 

When housing projects aren’t financially viable, it slows down the delivery of all new housing, including market rental, below-market rental and strata homes, limiting options for residents who want to stay in Vancouver. As fewer projects reach construction, housing supply will tighten, pushing rents and home prices upwards. 

In addition to losing new homes, when development projects halt, Vancouver also risks losing construction and trade jobs and public benefits such as childcare spaces and other amenities.  

Actions approved by City Council 

  • Temporary reduction to development charges so more projects can proceed during a challenging market. 
  • Targeted support for rental and below-market housing, including new incentives to improve project viability while minimizing displacement. 
  • New Attainable Home Ownership pilot to create homes for middle-income first-time buyers. 
  • Direction to update apartment design regulations aimed at improving livability, increasing clarity and streamlining approvals of new homes. 

These updates build on Council-approved viability measures from June 2025 and complement ongoing work to make permitting faster, simpler and more predictable (312 KB). Together, they help more projects move from approval to construction. Staff will monitor the temporary measures and report back as longer-term financing growth and regulatory updates progress into 2026. 

More information on these measures is provided in the accompanying factsheet (80 KB).