Have you been hearing of the “missing middle” lately?
The “missing middle” refers to housing units other than the most common types such as high-rise condos and single-family homes:
The City of Vancouver is considering housing changes that would permit the construction of multiplex developments on single-family lots without requiring rezoning.
The goal of these changes is to address the pressing need for more housing supply.
Victoria and Toronto have already embraced similar measures, and it appears that Vancouver is also poised to adopt this approach.
In Vancouver, the proposal will allow the following to be built:
- about 4,000 sq. ft of floor space, and up to 4 units on each 33′ wide lot
- about 6,000 sq. ft of floor space, and up to 6 units each 50′ wide lot
- up to 8 units on each 50′ wide lot if all units are rental.
One important covenant in all this is that the lot must have access to a lane.
If you are considering building a single-family home in Vancouver, this is an important note:
“The plan also calls for a 16% floor space reduction if the owner wants to build a new detached house. In anticipation of the rezoning, Mr. Fry anticipates a rush of permit applications from anyone who wants to build a bigger house than the new zoning will allow.”
Here is the latest article regarding the proposed housing changes in Vancouver:
Vancouver Ponders Plans to Expand Multiplex Development
A highly recommended Presentation by the City of Vancouver:
City of Vancouver – Multiplex Proposal
The Government of BC is actively working on expanding this change across the province.
What impact will this have on the Real Estate market?
The Real Estate market will see continued price increases for single-family lots, particularly in the Lower Mainland where land availability is limited. It is interesting to note that both types of single-family homes will experience price growth:
a) Lots with back lane access will be in higher demand because they offer greater potential for development and profitability.
b) With more single-family lots being redeveloped into multiunit dwellings, the number of available lots for traditional single-family homes will decrease. This reduced inventory will drive up prices, as there are still thousands of families in Vancouver who prefer living in houses.
As for the Mortgage Market?
We are witnessing the highest mortgage rates in more than 20 years. The most recent inflation report shows a 3.40% year-over-year increase, down from the peak of 8.10% reported back in June of 2022.
Eventually, the mortgage interest rates will have to follow this downtown trend.
As always, if you have any clients looking to purchase real estate or needing to renew their mortgage, our team is here to assist with any mortgage inquiry.
We value your referral business and will ensure that your clients receive the highest level of customer service.
Do you have any questions?
Reach out to our team of experienced professionals at Access My Home Equity today for a free consultation:
Email: info@accessmyhomeequity.ca
Phone: 604-362-4467
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