Vancouver’s bold, practical approach to addressing the housing crisis

Opinion column by Mike Klassen

By creating market rental housing with income restrictions, the city ensures more middle-income residents can stay close to their jobs and communities

For too long, skyrocketing rents and limited supply have prevented working- and middle-class Vancouverites from finding stable, affordable housing. While private-sector development has expanded supply, the market alone has not provided the rental stability residents desperately need.

That’s why under the direction of Mayor Ken Sim and his ABC Vancouver council the city has established the Vancouver Housing Development Office (VHDO). This initiative represents a transformative policy shift — one that is both a practical response to the affordability crisis and a financially responsible strategy benefiting all residents.

The VHDO’s core objective is to manage city of Vancouver’s land assets for maximum financial benefit. Public infrastructure is a derivative of financial strength — without a strong financial foundation, Vancouver cannot make the long-term investments required to maintain a great city. Unlike traditional government housing programs that rely on taxpayer subsidies, the VHDO leverages city-owned land to develop housing in partnership with private developers and independent property management companies.

This includes non-market housing. The VHDO currently oversees 230 sites, encompassing 13,000 units of housing, with 95 per cent operated by non-profits and co-ops. The portfolio, valued at $4 billion, is growing, with 18 additional projects in development (2,150 new units) and 750 turn-key social housing units secured through partnerships. These city-owned sites, long part of the Property Endowment Fund, will now be transformed into high-quality, income-tested rental housing for essential workers such as first responders, teachers, and health-care professionals.

This balanced approach ensures projects are efficient, professionally managed, and financially sustainable without placing undue burden on taxpayers. With the ability to generate non-tax revenue, the VHDO can do more than create much-needed housing — it can reduce the tax burden on residents and help fund community centres, daycares, public pools, firehalls, and skating rinks.

Critics argue that the city is overstepping by entering the market rental space. However, the VHDO is not competing with the private sector — it is filling a crucial gap. While Vancouver has seen a surge in luxury condos and high-end rentals, there remains a shortage of housing for middle-income earners who do not qualify for non-market housing but struggle with soaring rents. By creating rental housing with income restrictions, the VHDO ensures more residents can stay in the city, close to their jobs and communities.

Another misconception is that the city is bypassing regulatory processes. In reality, the VHDO must go through the same rezoning, public hearings, and approval processes as any private developer — if not more. There are no special privileges, just a strong commitment to maximizing public assets for Vancouverites. Additionally, the income-tested model will be enforced by professional property management firms, ensuring eligibility requirements are met.

Over the next decade, the VHDO’s model could yield approximately 4,300 new rental units, alleviating pressure on the housing market while positioning the city as a responsible steward of its land assets.

Instead of selling valuable public land to developers for one-time gains, the city is taking a forward-thinking approach that provides lasting financial and social returns.

Looking ahead, the VHDO plans to expand by exploring additional affordable rental options for lower-income residents, ensuring Vancouver’s housing system serves a broad range of incomes. This initiative isn’t just about building homes — it’s about building a more livable, inclusive, and economically sustainable city.

Vancouver is at a crossroads. We can continue the status quo — where housing remains out of reach and capital projects languish due to dwindling resources — or embrace bold, innovative policies like the VHDO that put residents first, in addition to generating revenue that can be reinvested in new housing and infrastructure.

The choice is clear: by supporting and expanding the VHDO initiative, we are investing in a future where more people can live, work, and thrive in Vancouver. This is just smart city-building.

Mike Klassen is a City of Vancouver councillor (ABC Vancouver) and resident of the Fraser Street community. This op-ed was originally published in Vancouver Sun.