Vancouver gets $115 million to build 40,000 new homes. What you need to know.


The City of Vancouver and the Canadian federal government have reached a housing deal through the Housing Accelerator Fund, aiming to construct over 40,000 homes in Vancouver within the next decade. The agreement, announced during a press conference with Prime Minister Justin Trudeau, outlines plans to fast-track approximately 3,200 homes over the next three years. Trudeau emphasized the federal government’s commitment to partnering with various levels of government to expedite home construction. Housing Minister Sean Fraser stated that nearly $115 million from the Housing Accelerator Fund would be allocated to reduce barriers to housing development.

The deal aims to promote high-density housing, expedite development processes, and increase housing proximity to transit. Vancouver plans to streamline rezoning, expand affordable rental programs, and implement initiatives to enhance housing construction. Mayor Ken Sim expressed enthusiasm for the announcement, characterizing it as a collective commitment to address the housing shortage. Sim highlighted the positive impact on neighborhood vibrancy and opportunities resulting from increased housing construction.

Sim acknowledged the rapid population growth expected in the Greater Vancouver region, estimating an influx of 500,000 people by 2050. To address this growth, he emphasized the need for swift and bold action. The federal government’s $115 million investment through the Housing Accelerator Fund was deemed generous and essential to accelerating home construction. However, the announcement faced criticism from the federal Conservatives, who pointed to recent data from the Canadian Mortgage and Housing Corporation revealing a more than 20% drop in housing starts across the country in November compared to the previous month.

December 2023 Vancouver Real Estate Market Update

As of December 4, 2023, Metro Vancouver is experiencing a notable surge in housing inventory, providing home buyers with the most extensive selection since 2021. The Real Estate Board of Greater Vancouver (REBGV) reports a 4.7% increase in residential sales for November 2023 compared to the same period in 2022, totaling 1,702 sales. While this represents a 33% decline from the 10-year seasonal average, the increase in active listings is contributing to more balanced market conditions.

Andrew Lis, REBGV’s director of economics and data analytics, notes that the growing number of active listings over recent months, coupled with the typical seasonal sales slowdown, is creating a more favorable environment for buyers. In November 2023, 3,369 properties were newly listed for sale, reflecting a 9.8% increase from the previous year.

The total number of properties listed for sale on the Multiple Listing Service® (MLS®) system in Metro Vancouver has reached 10,931, marking a 13.5% increase compared to November 2022. This is 3.7% above the 10-year seasonal average. The sales-to-active listings ratio for November 2023 is 16.3%, with variations by property type: 12.7% for detached homes, 19.8% for attached, and 18.2% for apartments.

Historical data analysis indicates that home prices may experience downward pressure when the sales-to-active listings ratio falls below 12% for an extended period. Conversely, sustained ratios exceeding 20% often lead to upward pressure on home prices.

Lis points out that the current market conditions, characterized by balanced supply and demand, are contributing to flatter price trends. Following a period of over 7% price increase earlier in the year, prices have seen a slight decrease since the summer. While Cyber Monday discounts may not be prevalent, prices have edged lower by a few percentage points. Moreover, with economists predicting a modest decline in mortgage rates in 2024, market conditions are considered highly favorable for buyers.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,185,100, reflecting a 4.9% increase over November 2022. However, there is a 1% decrease compared to October 2023.

Breaking down property types, detached home sales in November 2023 increased by 7%, reaching 523 sales. The benchmark price for a detached home is $1,982,600, representing a 6.8% increase from November 2022 but a 0.9% decrease compared to October 2023.

Apartment home sales reached 850 in November 2023, showing a marginal 0.4% increase from November 2022. The benchmark price for an apartment home is $762,700, indicating a 6.2% increase from November 2022 but a 1% decrease compared to October 2023.

Sales of attached homes totaled 316 in November 2023, marking a substantial 12.5% increase compared to November 2022. The benchmark price for a townhouse is $1,092,600, showing a 6.9% increase from November 2022 but a 0.7% decrease compared to October 2023.

In summary, Metro Vancouver’s housing market is currently characterized by increased inventory, balanced conditions, and a slight decline in prices since the summer. With favorable market conditions for buyers and anticipated declines in mortgage rates, the real estate landscape in the region appears to be offering a unique opportunity for those in the market for a new home.