A Regional Opportunity in Rental Housing

July 2016

In the Okanagan Region in British Columbia’s southern interior, rental vacancy rates are commonly at or even below a remarkably tight 0.5 per cent, in contrast to the 3-4 per cent benchmark that is considered balanced. 

This is an outcome of a decade or more of limited construction of rental units, during which time such projects have typically not been economically viable for developers. ACIC, however, is closely monitoring for projects that have the right combination of features for profitability. In contrast to larger urban centres, the region has relatively low land costs. If buttressed with modular or other low-cost construction methods, and with concessions on municipal requirements that contribute to costs, this could tip the balance in favour of specific developments. 

And if they can be built cost effectively, rental developments can be attractive and potentially stable income generators. The key risk on the income side is a possible vacancy rate spike due to factors such as major employment loss. That, however, is a low risk in the increasingly economically diversified Okanagan region, where both population and employment are growing.

Qualified investors with potential interest in participation in a project of this type can contact ACIC at

BC’s Lower Mainland: A Unique Opportunity

May 2016

British Columbia’s Lower Mainland region – the City of Vancouver and its surrounding area – is world renowned for its scenic beauty and quality of life. And while real estate prices are already high here by global standards, there continues to be significant potential for competitive returns on strategic financing-based investments.

Key among the factors creating this opportunity is a population that continues to get bigger. BC’s provincial economy is expected to lead its Canadian peers in growth in 2016, and the Lower Mainland remains a highly attractive destination for immigrants to Canada. Metro Vancouver – the country’s third-largest metropolitan area – has projected an influx of 30,000 new residents annually until 2041, requiring well over half a million new dwelling units.

In combination with the city’s natural constraints on outward expansion, population growth will drive strong continued densification and vertical development over the next 5-10 years. Under-developed areas adjacent to major transportation corridors – including the region’s still expanding rapid transit system – represent particularly good opportunities. Residents are increasingly seeking housing options that will minimize their vehicle dependence. There is strong demand in the metropolitan area for multi-use developments, combining lower-level commercial and retail with upper-level residential.