An update on the future of Metro Vancouver’s new home supply:
If you’re under 40 in Metro Vancouver, know this: most new housing being built today is rental only. That means fewer homes to own, less supply, and higher prices down the road. It’s quietly eroding your future wealth.
Homeownership is still the foundation of wealth for most Canadians
The average homeowner’s net worth in Canada is over 30 times higher than that of a renter. When people can’t buy, they miss out on the single biggest driver of generational wealth: equity growth through ownership.
Homeownership has always been the backbone of financial security in this country. When that path narrows, the gap between those who own and those who rent widens dramatically.
Purpose-built rental construction is boomin
From Vancouver’s Broadway Corridor to Surrey City Centre, cheap federal financing and a pivot from slowing presale demand have pushed rental development to levels we haven’t seen since the 1950s and 1970s.
The result is an unprecedented wave of purpose-built rentals reshaping our housing landscape.
Tens of thousands of new rental units are on the way
According to a recent report by Vancouver-based Rennie, nearly 23,000 purpose-built rental units are currently under construction, with another 75,000 in the planning stage.
After decades of underbuilding, rental supply is finally coming to market at scale. But much of it comes at the cost of new ownership housing.
Rental growth is centred around our urban cores
Most new rental projects are concentrated in Surrey City Centre and Vancouver’s core, close to SkyTrain and transit access. Thousands of these units are expected to complete in the coming years, many converted from previously planned condos.
For renters who live near transit, the lifestyle makes sense: walkable, connected, and car free.
But for those looking to buy, this concentration means fewer ownership options where most of the growth is happening.
Future ownership opportunities are shrinking fast
New condo housing starts, especially in the high rise space, have slowed to a crawl.
That means fewer ownership homes coming to market in the years ahead. For those under 40, this could translate to limited choices and higher prices as more people enter their household formation years.
Developers didn’t pivot to rental by choice
For many developers, building rental became a survival move. With cheaper CMHC backed financing and slowing condo presales, switching to rental was often the only way to keep projects moving and teams employed.
It wasn’t preference. It was necessity.
First-time homebuyers are getting older
As more development shifts to rental and ownership supply tightens, the path to homeownership is getting longer.
Fewer entry level condos mean more people renting well into their late 30s and 40s before ever owning, if at all.
A recent report out of the US shows that the age of first-time homebuyers is now at a record.
The push for rental living isn’t accidental
Local and federal politics are promoting rental living more aggressively than ever. It’s framed as a solution to affordability, but citizens should be alert to the message being sent.
As ownership becomes harder to achieve, dependence on government grows and long term wealth building opportunities fade.
What’s being presented as a fix for affordability may, over time, undermine financial independence for younger generations.
We may be entering one of the last balanced markets for buyers
Right now, the market still has inventory and developers are motivated to move it.
But once this cycle clears, there’s very little new ownership housing coming behind it.
For buyers, this could be the last real window in a generation to enter the market at a reasonable price and escape rental jail before ownership opportunities become even more scarce.
A Message to Young, Aspirational Buyers
Homeownership is more than a place to live. It provides stability, freedom, and long term security that renting simply cannot.
Young buyers shouldn’t mistake the current ease of renting for lasting comfort. Renters can face rising costs and uncertainty, while ownership builds equity and financial control over time.
If you’re in a position to buy, start educating yourself, watch the market closely, and take advantage of opportunities while they’re still available. The decisions you make today will shape your financial freedom for decades to come.
