In a city where the housing crisis has reached catastrophic levels, Vancouver remains gripped by a decades-old zoning regime that is preventing much-needed solutions. While the city’s skyline may be dominated by glass towers and high-rise condos, the reality on the ground is far different. Over 75% of Vancouver’s residential land is reserved for low-density housing, effectively banning the construction of new apartment buildings. This exclusionary zoning is deepening the housing crisis, driving displacement, and worsening affordability across British Columbia.
Why Apartments Are Banned on Most of Vancouver’s Land
Vancouver is at the epicentre of British Columbia’s housing crisis, yet the city continues to enforce zoning laws that severely limit where apartment buildings can be constructed. This policy, often referred to as the “grand bargain,” reserves the majority of residential land for single-family homes while confining apartment developments to a small number of busy roads and older apartment zones.
This system has created a striking visual divide: affluent neighbourhoods are characterized by sprawling, expensive homes, while new apartments are restricted to high-traffic, high-pollution areas. Wealthy areas remain untouched, protected by a vocal “Not In My Backyard” (NIMBY) contingent, while the burden of development is shifted to poorer districts, displacing working-class residents.
This restrictive approach to housing is out of step with the urgent need for more homes. The Canada Mortgage and Housing Corporation (CMHC) estimates that British Columbia needs 610,000 new homes by 2030 to alleviate the shortage—a target that current trends are not likely to meet. For Vancouver, one of the most expensive real estate markets in North America, the apartment ban is a central factor in its housing crisis.
Affordability, Displacement, and Inequality
The impacts of Vancouver’s exclusionary zoning are far-reaching, contributing directly to rising housing costs, displacement, and widening inequality. In areas where apartments are permitted, developers face intense competition for limited parcels of land, which drives up land prices even before rezoning begins. This increases the overall cost of new housing—whether market-rate or affordable—and puts immense pressure on non-profit housing developers who are already struggling to build affordable units.
In fact, non-profit housing providers in Vancouver report that going through the rezoning process can cost upwards of $500,000 to $1 million, even before breaking ground. These costs inevitably translate into higher rents, further eroding affordability for Vancouver’s renters, who are already facing some of the highest costs of living in the country.
Beyond the financial implications, exclusionary zoning leads to displacement, particularly in areas like Burnaby’s Metrotown, where older apartment buildings are demolished to make way for new developments. Renters are pushed out of their homes and into less desirable areas, while single-family neighbourhoods remain protected from these changes. The result is a city that is increasingly divided by class, with wealthier residents enjoying the benefits of quiet, tree-lined streets, while lower-income households are forced to endure the noise and pollution of high-traffic areas.
Vancouver’s Downtown Eastside: A Neighbourhood Left Behind
The Downtown Eastside (DTES) serves as a stark example of how exclusionary zoning exacerbates housing inequalities. Known for its deep-rooted issues with poverty, addiction, and homelessness, the DTES has long been a focal point for social services and low-income housing. However, exclusionary zoning policies ensure that the bulk of new housing developments occur outside of wealthier areas, concentrating poverty in districts like the DTES rather than dispersing affordable housing more equitably throughout the city.
The lack of new apartment construction in wealthier neighbourhoods forces low-income residents to remain in marginalized areas. Meanwhile, the DTES continues to bear the brunt of Vancouver’s housing crisis, with little relief in sight. Public policy that allows for more evenly distributed affordable housing, including in upscale neighbourhoods, could ease the pressure on the DTES and provide residents with more opportunities to escape the cycle of poverty and addiction.
Limited Progress, but More Needed
To its credit, the BC government has made some progress in pushing back against exclusionary zoning. Recent legislation requires cities to allow small multiplexes in areas previously zoned exclusively for single-family homes. While this is a step in the right direction, it falls far short of the broader zoning reform needed to address Vancouver’s housing crisis. Multiplexes alone cannot meet the demand for affordable housing in a city where the average home price exceeds $1.4 million.
Another positive development is the provincial push to allow apartment buildings within 800 metres of transit hubs, like SkyTrain stations. However, loopholes in the policy allow cities to avoid fully implementing these changes, limiting their impact. Vancouver, for example, has been slow to adopt these measures, ensuring that the apartment ban remains in place across most of the city.
Despite these efforts, the BC Conservative Party remains opposed to zoning reform. Party leader John Rustad has called the provincial government’s zoning reforms “crazy” and promised to repeal them if elected. Rustad’s position highlights a significant divide in BC’s housing policy debate: while the provincial government is taking steps to open up more land for apartment construction, opposition parties continue to push back, potentially stalling further progress.
Sprawl, Climate Change, and Public Infrastructure
The consequences of Vancouver’s exclusionary zoning policies extend beyond the city’s borders. By restricting housing development within the city, these policies push residents to the suburbs, contributing to urban sprawl and all the environmental and social costs that come with it. Commuters are forced to travel longer distances, increasing their transportation costs and contributing to climate change through higher vehicle emissions.
Research shows that denser urban development is not only more environmentally friendly but also more cost-effective for municipalities. Providing public infrastructure like roads, sewers, and transit in suburban developments is far more expensive than in compact, urban areas. Yet, Vancouver’s zoning policies continue to prioritize low-density housing, making it more difficult and expensive to address the city’s infrastructure needs.
Meanwhile, denser neighbourhoods contribute disproportionately to the city’s tax base, generating more revenue per capita than sprawling single-family areas. Allowing more apartments in low-density areas would help broaden the tax base, making it easier to fund much-needed public infrastructure projects, from transit expansions to park maintenance.
Ending the Apartment Ban
Vancouver’s housing crisis demands bold action. Ending the apartment ban in single-family neighbourhoods is a critical first step toward creating a more equitable, affordable, and sustainable city. This means allowing at least six-storey rental apartments in areas where multimillion-dollar detached homes currently dominate, without the need for lengthy and costly rezonings. It also means giving non-profit and public housing providers an edge in acquiring land by allowing greater density for non-market housing developments.
Zoning reform alone won’t solve Vancouver’s housing crisis, but it’s a necessary piece of the puzzle. Other solutions, such as increased public investment in affordable housing and stronger tenant protections, must also be part of the equation. However, without addressing exclusionary zoning, Vancouver will continue to struggle with rising housing costs, displacement, and growing inequality.
As the cracks in Vancouver’s exclusionary zoning policies begin to show, there is a growing recognition that the status quo cannot continue. If Vancouver is serious about solving its housing crisis, the city—and the province—must take meaningful steps to open up more land for apartment construction. Only then can we hope to build the housing Vancouverites so desperately need and create a more inclusive and affordable city for everyone.
Join the Conversation: Do you think Vancouver should lift its apartment ban in single-family neighbourhoods? How would this impact housing affordability and community dynamics? Share your thoughts below!
Denise is a long-time advocate for affordable and dignified housing in the Downtown Eastside. Having lived in SROs and volunteered in homeless shelters, she brings a personal understanding of the housing crisis and its impact on the community. Her work reflects years of lived experience, frontline work, and commitment to creating better living conditions for DTES residents.
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