Blog Post

The Demand for High-End Rentals

  • By Admin
  • 09 Jul, 2018

When analysts diagnose the root causes of the housing crisis in metro Vancouver, they point to the lack of new construction of purpose-built rental properties. There have been virtually none built in the last 40 years, mainly due to the big incentives the province has placed on building sale properties.

High-End Rentals

That trend is rapidly changing with new policies and market shifts that are making developers like ENM look harder at pursuing rental developments. Our current project, Willoughby Walk, is a 191-unit purpose built rental property in Langley that will provide a much-needed boost to the supply of high-end rentals in the Lower Mainland. These types of properties are becoming more attractive to developers because the demand for them is currently is sky-high. 

For most middle-class families living and working in metro Vancouver, buying a house or condo is simply out of reach. These families are forced to become renters, and many plan for long-term living situations in their rental property. Naturally, they’d prefer to raise their families in units that are a step up from the typical fifty-year-old rental buildings that are all over the city. They want buildings with amenities like a 24- hour doorman, shared common spaces, gyms and parcel delivery services. They want to live in walk-able communities that provides ample green space nearby. Now developers are stepping up, and we at ENM plan to be at the forefront of the movement to develop and build new purpose-built rental properties across the Lower Mainland.

More Incentives for Purpose-Built Rentals

Our co-founder, Daniel Greenhalgh, believes strongly in this vision. “I think we in B.C. could be doing more to incentify the construction of new purpose-built rental properties, like ours at Willoughby Walk. Right now, the approval process for permits is about the same as for market condos. We should encourage municipalities to streamline applications for purpose-built rentals and affordable housing projects. It’d be great if there was more funding to help local governments increase their staff and capacity for permit applications.” 

Daniel points out that Toronto has incentive programs in place for purpose built rentals, and thinks there’s no reason that Vancouver can’t follow suit. “Like Toronto, Vancouver, is past the point where middle class families can afford to buy a new condo. In this kind of market, the provincial government has an obligation to create opportunities for these families to live in regulated, high-end buildings and complexes. There are so many shoddy, unmanaged rental properties in Vancouver. At ENM we, and hopefully other developers, want to fill this gaping hole of supply of new, well-managed rental properties. These are places where you can plan for a future and know that you’re not going to be arbitrarily kicked out or have your property redeveloped.”

At Willoughby Walk, the amenities are modern and imaginative, the construction is top notch and the location is highly desirable and attracts millennial families hoping to build roots in a community, as well as retired seniors who want a flexible living situation. There are precious few of these purpose-built rental properties being constructed in the Lower Mainland, and we hope the new NDP government will find ways to incentive developers to pursue them. The need for them is definitely clear.
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