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City council wants to subdivide laneway homes. Will that help home affordability?

Vancouver council directed staff to explore subdividing properties to sell laneway homes separately as an affordability measure. But could it fuel speculation?

Good morning! 

One of my favourite things about summer is all the outdoor events that happen. In the last couple of weeks, I’ve been to a couple, and something about outdoor events is just so refreshing. I went to Queers and Beers at the Birdhouse on July 5, and I went to Polygon Gallery’s Deckchair Cinema last Thursday, and both were a blast.

Sure, nothing about Queers and Beers — dancing, drinks, friends and games — is inherently an outdoor event. And sure, you can watch a movie inside any theatre. But being outdoors is always a value-add in my opinion. The air is fresher, people are friendlier and the ceiling is non-existent.

Last week’s Deckchair Cinema film was Universal Language, which was a fun film I’d never heard of. It didn’t fit neatly into the sci-fi theme they’re going for this summer (which they admit) but its absurdist humour and unique setting — a fictional Winnipeg-Tehran hybrid made up of highways and brutalist architecture — manages to overcome that inconsistency.

I certainly recommend both the movie and Deckchair Cinema!

Today, we’re looking at a move by city council to look into the idea of allowing subdivision or stratification of properties with single-family houses and laneway houses to allow owners to sell off the latter.

Editor’s note: In one instance in the story on Friday, it stated that Ken Sim had put a moratorium on social housing, when it was in fact supportive housing.

PS - If you find this newsletter valuable, please consider forwarding it to your friends. New to the Lookout? Sign-up for free. 

WEATHER

Monday: 23 🌡️ 17 | 🌤️

Tuesday: 26 🌡️ 16 | ☀️

Wednesday: 25 🌡️ 16 | ☀️

THE LOOKOUT RECOMMENDS

Outdoor movies: As I mentioned in the intro, there’s something special about watching films outdoors — it makes the moviegoing experience feel more like an event. I already mentioned Deckchair Cinema, and there are some movies I’m certainly interested in seeing coming up, including Wrath of Khan. But you can also check out events at the Vancouver Art Gallery, Stanley Park, outside the Queen Elizabeth Theatre and a variety of spots in the suburbs.

Great art: The Polygon in North Vancouver has a few exhibits ongoing right now, and I really appreciated Anna Binta Diallo’s Predictions when I was in North Vancouver on Thursday, and I’m keen to see Star Witnesses as well! And if you’re there on a Thursday evening, why not also check out one of the outdoor movies?

A nice, long bike ride: I recently rode my bike to Victoria, and while you may not want to go quite that far, Delta’s new Barns to Beaches is a fun route to take — and while I didn’t have time to make this stop, Barnside Brewing looked like a great stop along the way.

A hidden patio: I recently met up with someone at the JJ Bean on Commercial Drive and found out they have this delightful patio in the back!? It’s fenced off and feels much more peaceful and secluded from The Drive — a great spot if you want to do some reading! I always knew of the patio along Sixth Ave, but I had no idea about the fenced-off patio through the back. It’s possible I am late to the game on this one, but the person I met there also wasn’t aware of the patio, so consider this a PSA for anyone else unaware.

HOUSING

City council wants to subdivide laneway homes. Will that help home affordability?

Vancouver city council has directed staff to look into giving owners of lots with single-family houses and laneway houses the ability to subdivide or stratify the property with the intention of providing another opportunity for homeownership amid Vancouver’s ongoing housing crisis.

  • However, some are questioning whether the move will instead wind up another vehicle for investment and speculation without actually addressing the root causes of affordability in the city.

Background: Councillors Sarah Kirby-Yung and Mike Klassen brought forward the motion last week, noting more than two-fifths of single-family homes in the city are owned mortgage-free by people aged 65 and over, “many of whom are interested in downsizing, creating housing for extended family members, or wishing to age in place in their communities.”

The motion notes that the city can stratify and subdivide properties for multiplex developments, but the same opportunity isn’t available for laneway homes or accessory dwelling units, adding that it’s a policy choice not based on any technical reasoning. Klassen added at the meeting that subdividing and stratifying are available to laneway homes if the owner is doing a character house retention.

  • The city began allowing laneway houses in 2009, and Klassen said more than 6,000 of them have been built through the program since, with hundreds more being added per year. “It’s an extraordinarily popular program,” he told Global.

The case in favour: Several representatives of laneway home builders spoke in favour of the move to city council, including three representatives of Smallworks. Owner Luke Harrison told council that, from his experience, the units are being built largely by people downsizing from their single-family houses, often to keep generations of the same family together or to be able to age in the same area in which they have made their home.

He said the inability to subdivide or stratify the laneway house means their construction can’t be financed separately from the house, which can force owners into awkward co-ownership agreements, where both the original owners and their children, who want to move into the larger house, are both liable for the cost of the mortgage.

  • “This trap reduces the viability of these projects,” Harrison told council, noting young buyers can’t access financing, “without clear title” over a property.

Akua Schatz, principle and owner of Smallworks and chair of the non-profit Small Housing BC, said she was able to figure out a co-ownership agreement with her in-laws, but that because they are both on the title for their property, it has limited her in-laws’ ability to access financing. “We’re all tethered together in our financial decisions,” she said, calling subdividing and stratifying a “no-brainer.”

Bryn Davidson of Lanefab did note an objection that he has heard: the loss of rental units if they are subdivided and sold off. However, Davidson brought that up to offer his counterpoint — that “mortgage helpers” such as accessory dwelling units or laneway homes shouldn’t be our response to the rental housing shortage.

The obvious appeal: Andy Yan, director of SFU’s city program and an urban planner, told CityNews the appeal isn’t hard to miss: “Dirt.” That is, the units are ground-oriented and may have access to a yard, which can be of particular interest to families with young kids whose other options for ownership are often units in high-rise.

A bit of caution: But Yan told CTV News it’s not clear that the move will improve affordability. Proponents noted the move opens the laneway house market to even more homeowners, thereby increasing the likelihood of building more supply, with Small Housing BC executive director Tamara White telling CityNews it could “democratize the production of new housing.”

However, Yan cautioned that, rather than democratizing housing production, subdividing could draw the interest of speculators — and without appropriate cautions, could mean more properties being snatched up not by homeowners, but by investors.

  • “Does this create the latest and newest investment vehicle in Vancouver real estate as opposed to homes for families?” he posed to CTV.

Yan didn’t respond to a request for comment by Vancity Lookout.

Some thoughts: The idea feels more valuable as a means of keeping families together than it does as a means of increasing affordability — the need for new housing units is orders of magnitude greater than the number of new units this move is likely to spur. But this could give young families the ability to get their foot in the door for homeownership, and allow children to be close to their grandparents and reduce families’ reliance on daycares.

However, Yan does raise serious concerns about speculation — it isn’t unprecedented for programs intended to increase ownership options to become vectors for profit to the detriment of affordability. Margaret Thatcher’s sell-off of council housing in the UK in the 1980s is a prime example of that, with updated right-to-buy programs in more recent decades continuing that trend.

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THE VANCOUVER NUMBER

21,600

BC’s unemployment rate declined from 6.4% in May to 5.6% in June, but that’s not necessarily because of jobs being created. Rather, Statistics Canada reports that there this many fewer workers participating in the labour market. [Vancouver Sun]

THE AGENDA

🚛 A 90-day pilot redirecting truck traffic to and from the Port of Vancouver that began in 2012 never ended, and residents who live along the routes trucks now take say it needs to end. Trucks used to access the port through industrial land along Clark Drive, but they now enter through Commissioner Street, running through residential neighbourhoods. [Vancouver Sun]

🚗 Electric vehicles will no longer need a special decal on their car to be able to drive in HOV lanes. The “OK” decal lets law enforcement know that, despite not carpooling, the cars were allowed in the carpool lanes, but the government says dropping the decal will save $70,000 in administrative costs and allow out-of-province drivers of electric cars to use HOV lanes. [Global]

🚔 Police deemed Katica Dusanic’s death an overdose. But her family believes the police and coroner were too quick to make that determination after she was found dead in an SRO, and serious questions remain about the circumstances of her death. [The Tyee]

⛸️ Vancouver Canuck Conor Garland did it before it was cool. Garland has been wearing a neck guard since 2023, after Connor Bedard’s skate came dangerously close to Mark Scheifele’s neck. Now, an amendment to the CBA will require players who start in the 2026/27 season to wear neck guards, following several other leagues after the on-ice death of a hockey player in England, also in 2023. [Vancouver Is Awesome]

🏒 Speaking of Canucks, goalie Artur Silvos was just traded for a fourth-round pick in the 2027 draft. The team also acquired forward Chase Stillman, brother of Canucks player Riley Stillman. [Canucks Army]

💸 The BC government quietly let its BC Family Benefit bonus drop to 2023/24 levels, meaing the temporary $445-per-year boost families got last year has expored. The increase was justified by the high inflation in recent years, and while inflation is down, one advocate says the government is taking money away from the poorest families when the cost of living is still high. [The Tyee]

EVENT GUIDE

Through A Film Darkly | Anvil Theatre, New Westminster | July 24-27 | An exploration of identity, belonging, and the lingering shadows of colonialism set in post-independence Ghana | Admission is free

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Vancouver Folk Music Festival | Jericho Beach Park | July 18-20 | Experience global sounds, homegrown stars, and three days of music by the beach at VFMF — the ultimate summer escape in the city. | Learn More [Sponsored]

Eastside Arts Festival | MacLean Park and Eastside Arts District | July 18–27 | Art workshops, live music, beer garden, and more | Tickets various prices

Summer Movie Nights | šxʷƛ̓ənəq Xwtl’e7énḵ Square | July 17 | Watch Little Women this week at Summer Movie Nights, a free outdoor movie event with activities starting at 5 PM | Learn more [Sponsored]

SAKE SOIRÉE – Long Table Dining | The Victor, 39 Smithe Street | July 17, 6 pm | Rooftop five-course dinner with sake pairings | Tickets $125

Art Downtown 2025 | Lot 19, 855 W Hastings St | July 17 | Open-air art fair with music and live painting | Free

Korean Cultural Heritage Festival | Swangard Stadium, Burnaby | July 19, 10:30 am | Performances, cuisine, and cultural exhibitions | Free

Vancouver Pop-Ups: The Summer Makers Market | Heritage Hall, 3102 Main Street | Jul. 20 at 11 am | 40+ vendors, food, giveaways, pet-friendly | Free

BACH & MOZART: In Endless Ascent | Various venues, Vancouver | July 26–Aug. 8 | Classical festival blending Bach, Mozart, and modern works | Various prices

Pleasant Day Festival | Mount Pleasant | Aug. 9, 12 pm | Live music, patios, beer gardens, food trucks | Free

Thai Festival Vancouver | Vancouver Art Gallery | July 26, 11 am | Celebrate Thai culture and cuisine with music, food, dance and art | Admission is free

Vancouver Hot Sauce Fest | 250 W 3rd Ave | Saturday, July 26, 2 pm | Turn up the heat with fellow spice enthusiasts, chefs, DJs, bartenders and more | Admission is free before 6 pm

Vancouver Ice Cream Festival 2025 | Various locations | Until Aug. 4 | Turn down the heat and explore the many parlours, cafes and restaurants offering your favourite frozen dessert | Find participating vendors

Fitness is Such a Drag | šxʷƛ̓ənəq Xwtl’e7énḵ Square (Vancouver Art Gallery North Plaza) | July 29, 6:30 pm | Get a lesson in fitness and raise funds for Vancouver Pride, with Kendall Gender and more | Tickets $33

Want to see your event here? You can purchase them through our self-service portal here.

NEW VANCOUVER JOBS

Discover your dream job in Vancouver:

GOOD NEWS MONDAY

An emerald ash borer beetle flew into exactly the right person — an amateur entomologist. Bad news for the beetle, but good news for our trees. The beetle is known to devastate ash forests, and beetle infestations can go undetected for years. An early discovery can mean faster prevention and mitigation measures. [The Canadian Press]

COMMUNITY HIGHLIGHTS
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