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Delta deserves to be in penalty box for lack of rental construction

With zero new rental units being built or scheduled for construction, Delta deserves to be in the penalty box.
rental units

With zero new rental units being built or scheduled for construction, Delta deserves to be in the penalty box.

That’s according to the commercial real estate firm Goodman, which recently published a report that shows which communities are adding purpose-built rental units and which ones aren’t.

The online report found that in the 15 suburban communities surrounding Vancouver there were just over 3,000 rental units completed in 24 buildings thus far in 2019. There are almost 12,000 units, in 96 buildings, in the pipeline.

Delta is the only community of the 15 that doesn’t have either a completed project or one in the pipeline.

When City of Vancouver figures are factored in, it bumps the number of completed rental units for 2019 to almost 4,000 in the region and those in the pipeline to just over 20,000.

Of those in the pipeline, only one-quarter are actually under construction and scheduled for occupancy over the next three years (an average of 1,689 per year). The remaining balance of 15,146 units are proposed or approved. If built, these would require approximately three to seven years before completion and occupancy.

“Overall, the suburban vacancy rate of one per cent (CMHC) is scarcely better than Vancouver’s. Yet some municipalities have been far more welcoming to rental development than others. Kudos to Coquitlam, Burnaby, the City of North Vancouver, New Westminster, Maple Ridge and Surrey for creating viable programs to enhance new rental supply. Their tenant populations will benefit immensely by gaining access to expanded rental housing choices,” the report states.

“Certain other communities, however, have done less well. Port Coquitlam, Pitt Meadows, Richmond, West Vancouver and White Rock have performed poorly. Delta, with zero rentals scheduled, deserves the penalty box.”

The City of Delta is currently completing a housing needs assessment prior to formulating a strategy aimed at meeting the community’s housing needs, including rentals.

At a meeting of Delta’s community livability advisory committee a few weeks ago, it was noted there are approximately 7,575 rental units in the city. Of these, 1,272 (23 per cent) are reported as being purpose-built for the rental market and 6,303 (77 per cent) are assumed to be in the secondary market, which includes secondary suites or privately rented dwelling units.

No purpose-built rental units were constructed in Delta in 2016, 2017 or 2018.

Meanwhile, Delta’s median income is insufficient to achieve the 30 per cent affordability threshold to purchase a single-detached dwelling, which currently comprises 77 per cent of the housing stock, a number that includes dwellings with secondary suites. 

A recent update memo to the committee from the planning department provided summary of key comments during a housing assessment workshop.

“There are many underserved residents when it comes to housing. The main ones noted were young people, seniors, low-income households, renters, and those with specialized needs. Purpose-built rental was the form of new housing most encouraged, as was having more housing choices when infilling single detached neighbourhoods. Tenure options such as co-ops and freehold row housing were frequently mentioned. Higher density and multi-generational housing were also noted, but not as often. Red tape at City Hall was the most common barrier noted for new housing, along with market conditions that make land (and, therefore, housing) very expensive in Delta,” the memo notes.

A civic report on the housing action plan notes the overall rental vacancy in Delta was 1.3 per cent.

A previous Delta report noted rapid growth in the region will lead to the need for 500,000 additional homes over the next 25 years. Rental housing demand is estimated at 6,500 units per year for the next 10 years, two thirds of which would be for low to moderate income households.

“Given high construction costs and limited government funding, achieving housing estimates for the low to moderate income group is not being met. Transportation costs add to a household's cost burden… With the high cost of land and construction, it is becoming a challenge to make purpose-built rental housing financially viable for moderate income households. Providing housing for low to moderate income households is even more difficult.”

The city does have an application in the pipeline that would see a 28-unit rental apartment building at 5262 Ladner Trunk Rd. demolished to make way for a four-storey condo complex. Of the 62 units in the proposed complex, 42 would be strata with 20 dedicated for rentals, a reduction of eight rental units.

Meanwhile, a redevelopment application was submitted this summer for Ladner Willows, a 40-unit townhouse complex operated by Red Door Housing Society. That application is to redevelop the property into a four-storey non-market rental apartment building with 136 units.

The planning department also notes a multi-family residential development with all units proposed for rental is currently under construction at 54A Street and Ladner Trunk Road.  When complete, it will include 20 townhouse units and four garden apartments. 

A recently refurbished and renovated building at 5062-48 Ave. includes six rental apartments.