Vancouver's Downtown Eastside Housing Plan Faces Challenges from Experts
Vancouver's real estate community is expressing doubts about Mayor Ken Sim's recent plan to increase market housing in the Downtown Eastside (DTES). Sim's proposal, revealed last week, aims to pause new supportive housing citywide and to update the Downtown Eastside Area Plan to encourage a diverse mix of housing and services.
Bob Rennie, founder of the Rennie Group of Companies, has been critical of the existing area plan, which has prohibited condo development since 2014 and mandates a housing mix of 60 per cent social housing and 40 per cent secured market rental. Rennie indicated that even if the 60/40 ratio is removed, attracting rental developers to the area remains difficult due to current street conditions.
Rennie stated, "Developers will have a hard time buying land, building rental, and getting a rental rate that covers the construction costs and today's interest rates." He noted that substantial incentives, such as free density, would be necessary to encourage developers to invest in the area.
While Rennie acknowledged Sim's effort to instigate discussion about necessary changes, he emphasised that swift solutions are unlikely and that collaboration with higher levels of government and non-market housing operators is essential.
Sim aims to tackle the current overcrowding of support services in the DTES. Presently, Vancouver holds 77 per cent of the region's supportive housing, despite constituting only 25 per cent of the population.
The plan has ignited controversy, particularly the proposal to freeze all new supportive housing across the city, allowing for the revitalisation of aging housing stock. Nicole Mucci, a spokesperson for the Union Gospel Mission, recognised the need for renovations but critiqued the timing of the freeze amid rising costs and homelessness. "Are we considering and thinking about the needs of those who are the most vulnerable in our community?" she questioned.
Donnie Rosa, CEO of the Atira Women's Resource Society, expressed concern that halting new supportive housing could harm vulnerable populations, who are already frequently turned away from existing services.
Rennie further added that relocating supportive housing away from the Downtown Eastside poses challenges, given that many essential services for residents are already situated there.
