How investors have reshaped condos in Vancouver and Canada

Good morning,

There’s nothing I love more than window shopping for books, it feels like one of the few opportunities left to discover something new without the algorithm force-feeding us their latest automated, data-driven recommendation. The best books I’ve found are almost always something random that no computer ever could’ve recommended at places like Pulpfiction Books on Commercial or Massy Books on E Georgia. 

So, if you find yourself walking by a local Vancouver bookstore, especially a second-hand one, I cannot recommend enough stopping in. I know I sound like a bit of a luddite. But given how much I rely on computers for things like writing this newsletter, I feel like I’ve earned the right to wistful paragraphs like the one above.

But enough about books, today’s store is decidedly more monetary in nature. It’s all about how developments are shaping the size of condos in Vancouver. And by size, I mean smaller. 

— Geoff Sharpe, Lookout managing editor

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WEATHER

Wednesday: 14 🌡️ 8 | 🌧️

Thursday: 15 🌡️ 8 | ⛅️ 

Friday: 17 🌡️ 11 | ⛅️

HOUSING

How investors have reshaped condos in Vancouver and Canada

What happened: A new report from Statistics Canada confirms what many of those who live in condos have realized, that units are getting smaller and smaller. But the report also outlines how investors may share a big blame for those shrinking condo units.

How it works: Investors purchase pre-construction units, which developers use to secure financing, meaning developers have an outsized say in what gets built. Many turn these units into rentals to generate income. Investors prefer smaller units because they can generate a higher square footage fee for smaller units, meaning more profit. 

Changes: The data from StatsCan shows that in the Vancouver Census Metropolitan Area (CMA), the average unit size in the 1990s was 912 square feet (can you imagine…). Now? In 2016 the average was 790 square feet. Investors are also increasingly interested in only smaller units. In the Vancouver CMA, the rate of investment in smaller units under 600 square feet is 58.5 per cent, compared to only 38.9 per cent for units that are 800 square feet and over.

• The good news: Well, it’s not really good news, but the Vancouver CMA does not have the highest rate of investors. Ontario has worse areas, including the London CMA at 85 per cent of condominium apartments used as investment properties. 

Investor dilemma: To take the alternative side of this, investors serve a key purpose in the development of rental housing. If investors weren’t there to provide rental housing, then rental stock would continue to decline. 

Yes, but: Of course, that’s only one side of the issue. Back in 2022, a report from a senior research fellow at Carleton University in Ottawa, and covered by CBC, outlined how affordable rental units, for those who made under $30,000 a year, declined between 2011 and 2016 by 322,600 units.

• Large investment companies are purchasing even more units, with a study back in 2022 estimating that the 21 biggest real estate companies owned 17.6 per cent of the rental market. The concentration of ownership with big firms means higher rent prices, as owners demand bigger returns. 

What it means: The over-reliance by the development market on investor capital to build condos and turn those homes into much-needed rental units, is a fundamental problem with how Canada’s housing market is structured, leading to the problem we see in Vancouver, where not enough family homes are being built, and subsequently, families who require bigger homes moving to the suburbs. For a deeper dive into the presale problem, you can read our story here.

What’s the alternative: Vienna is a great example. The city became the dominant purchaser of land, allowing them to build better social housing, according to the Tyee. The model may not apply directly to a city like Vancouver, but it’s important for the public and city officials who make policy to consider alternative forms of housing. 

• In other news: Speaking of housing, East Hastings may soon see more high-rise rental towers, with 38-storey and 39-storey ones on East Hastings, near Glen Drive and Vernon Drive, according to the Vancouver Sun.

VANCOUVER NUMBERS

🍦 12 and 60: Two numbers in this story — 12 is the number of pints of ice cream a man stole from a Real Canadian Superstore, and 60 is the number of days he served in jail. [Vancouver is Awesome]

🔥 3: The number of homes that caught fire on Monday night in Strathcona, as nearly a dozen people were forced to leave their homes. One home caught fire, and it quickly spread to the others. An investigation into the fire is ongoing. [CBC]

ARTS

Theatre

Charlie and the Chocolate Factory? In the theatre? Right in Vancouver? Sign me up! A new production of the show will be at the Norman & Annette Rothstein Theatre from Oct. 11-27, and has a cast of 21 people, along with all the classic songs and an eight-piece orchestra. Get tickets here. [Stir]

The second longest-running non-musical in the history of London’s West End is back in Vancouver from Oct. 12-Nov. 2, a play bout mysterious occurrences and the line between reality and the supernatural gets blurry. [Stir]

Music

The Pražák Quartet returns to the Vancouver Playhouse on Nov. 10 at 3 pm, a popular group with two violinists, a violist and a cellist. Tickets are $70.

If you love jazz and trumpet, then Jeremy Pelt’s performance at the Shadbolt Centre for the Arts Studio Theatre on Oct. 11 is for you. Tickets are $40.

Remembrance and Reflection is a new choral event from United Voices Choir featuring Mozart and Fauré’s Requiems, with 65 singers on Nov. 2 and 3. Learn more.

Movies 

While the VIFF Festival may be over, the theatre has many shows on the horizon, including Electric Lady Studios: A Jimi Hendrix Vision, Between the Temples featuring Jason Schwartzman, Nosferatu With Radiohead: A Silents Synced Film, and a great double feature of Fitzcarldo and Burden of Dreams which gives into how the filmmaker Werner Herzog made the move. 

If you’re free tonight, Cinematheque is showcasing Seven Samurai. Seeing it on the big screen was, and I’m not exaggerating, a life-changing experience that moved me even more into appreciating cinema. 

It’s horror season at Rio, with Terrifier 3, Texas Chain Saw Massacre, Longlegs and Beetlejuice Beetlejuice. 

Finally, I would be remiss now to mention a movie from the Architecture & Design Film Festival, Arthur Erickson: Beauty Between the Lines, which explores the celebrated architect's life. Tickets are on sale Oct. 8 and shows run from Nov. 6-10. 

Art

The Vancouver Outsider Arts Festival at the Roundhouse Community Arts & Recreation Centre is this week, from Oct. 11-13, which focuses on showing visual and performance art from outside the normal art institutions. It’s a really unique experience. Learn more. 

The Lumiere Festival is back from Nov. 7-10, from 5 pm to 9:30 pm. It features small to large illuminated artworks, light-based shows and performances, with shows throughout the entire city. Learn more.

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HOME OF THE WEEK

I spent a lot of time on Commercial this week, checking out new restaurants and shops, so I thought it might be fun to profile a house from that neighbourhood.

This place caught my eye. Sadly it’s a two-bedroom, one-bathroom with only 1,066 square feet. But the design is very modern, with a big kitchen, two patio spaces and good-sized bedrooms. Plus, you’ve got Commercial right nearby, which is arguably one of the best blocks in the city. 

You know what’s not so good for a place this small? The price… 

House of The Week is a home selected by the Lookout team and is not a paid advertisement. All ads are labeled as such. If you’re a realtor who wishes to feature your home in our newsletter, please contact our sales team.

THE AGENDA

🏢 Council will soon decide whether to follow the BC government’s lead and allow single-stairways in buildings up to six storeys tall. Currently, buildings require two, which housing experts say leads to higher costs and smaller units. The BC Professional Fire Fighters Association opposes the move saying it will increase safety problems during fires. One stairwell is a common practice in Europe, South America and Asian countries, with places like Korea, Germany and Switzerland permitting 20 storeys with one stairwell. [CityNews]

❓️ Should a director of a company that stands to benefit from a government decision, be involved in that decision in their capacity while working for the city? That’s the issue in question as a senior advisor to the Mayor, David Grewal, faces criticism after he was involved in discussions over a policy that ended a ban on natural gas heating, while also being a director of two private natural gas companies. The mayor’s office said Grewal’s position does “not in any way interfere with his duty at the city.” [Vancouver Sun]

🪧 A woman is going about protesting a temporary fire hall that’s replacing a park at Gore Avenue with sarcastic signs that include slogans like “Trees don’t pay rent, they drink all the water, and hog all the carbon dioxide.” [Vancouver Sun]

👮 A woman in her 30s was assaulted near West 41st Avenue and Ontario Street at 7:50 pm on Sunday night, and people are asking for any witnesses to come forth. [CityNews]

🚘️ If you’re driving, you may want to avoid the area around Rogers Arena this week, as there are multiple events that will likely cause a lot of traffic. [Urbanized]

🚓 A suspect who allegedly stole a police vehicle and went for a joy ride has been charged with four offences, including theft of a motor vehicle. The vehicle was stolen after a police officer went to help a woman nearby. [Global]

🔥 A man faces charges after lighting a minivan on fire outside Vancouver City Hall on Sunday evening. [CTV]

VOLUNTEER OPPORTUNITIES

CNIB Guide Dogs: Become a volunteer puppy raiser or puppy border for guide dogs, contact Jade for more info. 

Refood: If you have some time, the organization needs a food bank helper to sort goods. They’re based out of New Westminster. Learn more. 

Ocean Legacy Foundation: They need a social media and content creation volunteer to help raise awareness about their mission of ending plastic pollution. Learn more. 

Learning Disabilities Society: Serving youth, children, and adults with learning disabilities, they’re looking for general volunteers in a range of positions. You can apply here.

Canadian Red Cross: Located in Burnaby, the organization needs administrative assistants to help out in their reception area, and other tasks. Learn more.

Want your volunteer opportunity featured? Reply to this email with the details!

SURVEY

Apologies to all readers, I forgot to include a poll on my story idea on the difficult of making friends in Vancouver.

Take the poll below. And if you have an interesting story about making friends in Vancouver, the challenges you’ve faced, or the success you had, I would love to feature you in the story. After you complete the poll, mention you’d like me to reach out to you.

PHOTO OF THE DAY

Here’s another reminder that fall has arrived, even if it felt really warm on Monday! A Reddit user captured this on Doman Street on Monday.

COMMUNITY HIGHLIGHTS

• This bakery is serving up some great Danishes. I highly recommend visiting for French baked goods. [Vancity Lookout]

• What are B.C. politicians really promising on critical issues for younger generations, like housing, child care, and climate? Check out Generation Squeeze's Voters Guide. [Sponsored]

• El Cafécito is a new Mexican cafe on Granville Island that just opened and is serving up some unique coffee drinks (expect a review soon over in our food newsletter). 

• Congrats to Universal Language, which won top Canadian film at the Vancouver International Film Festival. [Vancouver Sun]

• This service helps you snag sold-out BC Ferry reservations. [Urbanized]

• These are some incredible pumpkin designs over in Burnaby. [Reddit]

• Popular crow Fabian has a new video out! [Reddit]

VANCOUVER GUESSER

Congrats to Joslin show was the only one who correctly guessed Monday’s quiz. The answer to how many trees will be cut down in 2024 and 2025 was 6,000.

We haven’t done a SkyTrain station in a while. Can you guess this one? Reply with the correct answer and your name to be featured in the newsletter.