This roundup covers Vancouver’s record construction slump, BC Hydro’s substation expansion to power the future Broadway district, and the sale of an award-winning home in West Vancouver.
Vancouver Faces Its Worst Construction Crisis in Three Decades: What’s Happening to the Housing Market
Housing construction in Vancouver is experiencing an unprecedented downturn: the number of new projects in July fell by 42 percent compared with the same period last year. The figure, released by the Canada Mortgage and Housing Corporation, has alarmed developers and analysts, as a decline of this magnitude has not been seen in the city in the past 30 years. Mike Drummond, executive director of the Urban Development Institute, says plainly that building housing has become unprofitable, calling the current situation “the worst housing crisis in three decades.” He stresses that behind these figures are real people losing their jobs and real wages being eroded as construction projects come to a halt.
The statistics look especially stark compared with other major Canadian cities: Toronto saw a decline of only 10 percent, while Montreal recorded a 3 percent increase. Tania Bourassa-Ochoa, CMHC’s deputy chief economist, attributes the trend to broader problems with launching new projects, noting that similar dynamics are affecting many markets, though not on the same scale. At the same time, she offers some reassurance, saying that the large number of projects already under construction will continue adding to the housing supply in the near future. For Vancouver, however, that is little comfort, as analysts say the city is dealing with systemic problems rather than a temporary market fluctuation.
Drummond, who represents developers’ interests, sees a solution in drastically reducing construction costs. He says a building that would have cost $100 million in 2015 now costs twice as much. In his view, taxes and fees on housing construction must be reduced, and the approach to foreign investment reconsidered. He points to Australia, where foreigners are allowed to buy only new homes and are prohibited from purchasing on the resale market, helping prevent speculative price increases for existing properties. Canada, by contrast, has a ban on foreign homebuyers that is due to expire in 2027, and Drummond says it is time to start considering what the country’s new approach to foreign capital should be.
Andy Yan, director of Simon Fraser University’s city program, takes a different view, pointing out that the problem is not only construction costs but also the lack of affordability for local residents. His calculations show that about 70 percent of unsold condominiums in Vancouver are priced above $1 million, putting them out of reach for most residents. Yan raises a fundamental question: are we actually building the housing people need, or are we continuing to build properties that do not match what buyers can afford? He also notes that every new home requires infrastructure investments—roads, water systems and sewers—which he estimates at approximately $107,000 per housing unit. This raises a reasonable question: who should pay for these costs—the developer, the buyer or the city?
Yan also urges caution regarding the Australian model proposed by Drummond. He says blindly copying individual practices does not work, and that an influx of foreign capital into the housing market has contributed to bubbles in the past. In his view, Canada has already learned this lesson, as foreign investment helped fuel the current housing affordability crisis. Instead, he calls for deeper analysis and a comprehensive approach that considers not only construction volumes but also residents’ actual incomes.
Additional context comes from a fact not mentioned in the article but that seems obvious: inflation and rising construction-material costs in recent years have affected not only Vancouver but other regions as well. In Vancouver, however, these pressures have been compounded by the city’s unique geographic constraints and limited land supply, magnifying the impact of rising costs. At the same time, persistently strong housing demand—which previously drove the market—is now running up against high interest rates and declining purchasing power.
Together, these factors create a complex picture. On one hand, developers are calling for lower taxes and less bureaucracy; on the other, experts say the city needs more carefully considered planning policies and housing that middle-income residents can afford. For now, the market remains uncertain, and economists expect this trend to continue in the coming months. The full study and expert comments are available in the original CBC article.
BC Hydro Expands Vancouver Substation to Prepare for Broadway Growth
Canadian energy company BC Hydro has begun an ambitious project to expand the Mount Pleasant substation, located at the southwest corner of West 6th Avenue and Alberta Street. The strategically important project is intended to provide electricity for tens of thousands of new residents and commercial properties in Vancouver’s rapidly growing Central Broadway area. Built in 2014, the substation was originally designed with room for future expansion. Now, that reserved space is being put to its intended use.
The project is estimated to cost $90 million and involves installing a third transformer in an area deliberately left vacant for that purpose. In addition to increasing capacity, the upgrade is intended to improve the reliability of the overall power system. BC Hydro President and CEO Charlotte Mitha said projects like this are the result of years of planning: the company built the potential for growth into its infrastructure from the outset. She said the expansion will help support the homes, businesses and clean-energy technologies that will shape Vancouver in the coming decades.
The project’s importance is underscored by figures in the City of Vancouver’s second-quarter 2026 progress report on the Broadway Plan. At present, 169 active projects are under development. Of these, 59 have received development permits or are at later stages, while another 59 have approved rezoning applications. Together, the projects would create approximately 25,000 homes, including about 17,900 purpose-built rental homes, 3,800 below-market rental homes, 2,500 market condominiums and 800 social-housing units. For comparison, 20 projects are at the pre-application stage, 24 are submitting rezoning applications, 49 have received rezoning approval, 35 are going through the development-permit process, seven have building permits, and two have already received occupancy permits.
In addition to residential construction, the district is expected to see significant commercial and public-infrastructure development. Thirty-two non-residential projects and 89 mixed-use projects with non-residential components are under development, together creating approximately 11.4 million square feet of non-residential space. This includes 4.1 million square feet of institutional space, 2.5 million square feet of office space, 2.3 million square feet of hotel space, 1.2 million square feet of industrial space, and 940,000 square feet of retail, restaurant and service space. The hotel sector is particularly notable: 16 projects would create approximately 3,600 rooms, while 36 projects include local community amenities such as cafés and restaurants in residential areas.
However, current economic conditions are forcing developers to adjust their plans. The difficult market is expected to be a key factor determining the pace and timing of construction starts for many projects. By the end of the second quarter, only 10 building permits had been issued, reflecting developers’ caution under current conditions.
It is important to understand that this large-scale growth is directly linked to transportation infrastructure. The six new stations on the SkyTrain Millennium Line, part of the extension to Arbutus, will be the main catalyst for dense development along Broadway. The new extension is expected to open in late 2027, making the Mount Pleasant substation expansion timely preparation for the surge in activity that will inevitably follow the launch of the new transit service.
For those unfamiliar with the terminology, a substation is a power-system facility that converts high voltage into lower voltage suitable for use by residential and commercial buildings. Expanding a substation effectively means increasing its capacity—its ability to serve more customers simultaneously. With tens of thousands of new homes and commercial spaces planned, the district would face an electricity shortage without this expansion, seriously limiting its development.
In conclusion, the expansion of the Mount Pleasant substation is not merely an engineering project but a crucial element of long-term urban planning. It demonstrates how designing infrastructure in advance, with future needs in mind, enables cities to grow methodically and adapt to new challenges. While developers and city officials work through questions of financing and construction schedules, the power infrastructure is already being prepared to support the ambitious plans to transform Broadway into one of Vancouver’s fastest-growing centres. More information about the project is available in the original Daily Hive article.
Award-Winning West Vancouver Home Listed for $5.75 Million
A home in West Vancouver, one of British Columbia’s most prestigious areas, has entered the real-estate market after collecting a series of major architecture awards in just two years. Known as Howard House and designed by Architecture Building Culture (ABC), the residence has attracted the attention of both prospective buyers and industry professionals. In 2019, shortly after construction was completed, it was recognized by several juries, including the Lieutenant Governor of British Columbia Award in Architecture for Merit from the Architectural Institute of British Columbia. The property is now looking for a new owner, with its $5.75 million asking price reflecting both the project’s uniqueness and the status of its location.
The home has four bedrooms and four and a half bathrooms, but its most notable feature is how the architects responded to the challenging site. The shape of the lot resembles a kite, and that characteristic determined the overall design. The house consists of two interconnected wings that meet at a central courtyard, creating a sense of privacy while remaining open to nature. The bedroom wing is raised on columns and extends southeast, while the western wing contains the living spaces, a double-height entrance, the main staircase, an office, a games room and a balcony. This arrangement makes the most of the natural light and views from the property.
The market has already offered its own assessment of the property. According to BC Assessment data, the home sold for $5.83 million in 2024 and is now listed at $5.75 million—$80,000 below its previous sale price. This could reflect either a revision of the seller’s expectations or current conditions in the region’s luxury-home market, where demand for distinctive architectural properties remains steady but buyers have become more cautious. West Vancouver is traditionally considered one of the country’s most expensive municipalities, and homes of this calibre are not unusual there. However, design awards can be a decisive factor for buyers seeking not merely a house but a work of art.
For readers unfamiliar with architectural terminology, a “double-height space” is a room that extends across two storeys, creating a sense of spaciousness and allowing light to penetrate deep into the interior through large windows. As for the shape of the lot, “kite” is not a metaphor in this context but a literal description of land that narrows and widens like a kite, requiring an unconventional approach to the floor plan. The ABC architects clearly treated this not as a limitation but as a challenge, turning the site’s disadvantage into its defining strength.
Buying a home like this is not simply an investment in square footage but also an investment in reputation and aesthetics, as recognition from the professional community automatically raises a property’s status. Potential buyers should nevertheless keep in mind that maintaining buildings with unconventional geometry and extensive glazing can involve additional heating and maintenance costs. For those who value modern architecture and are willing to pay for uniqueness, however, Howard House could be a rare find. Details about the floor plan and the project’s history can be found on the Architecture Building Culture website, while information about the current listing is available in the Castanet listing, which includes photographs of the unusual home.
