Beyond the stopgap: How Vancouver’s rentals are being built for long-term living

Vancouver’s rental market appears to be easing. Rents are down, while listings and newly completed properties have increased, offering tenants more choices. Purpose‑built rentals are taking longer to lease, and developers are offering incentives like free rent or reduced deposits to attract tenants.

In East Vancouver alone, at least 13 purpose-built rental projects are actively leasing. A further five or six condo developments are expected to complete this year, together adding about 550 homes. Not all of those will end up as rentals, but the volume reflects a rare moment of choice for tenants.

At the same time, developers caution that this supply may not last. Fewer condo launches last year mean fewer completions in the years ahead, and purpose-built rental remains difficult to finance.

Revolve: a new addition on Kingsway

At Kingsway and Glen Drive, a new 14-storey rental tower called Revolve is testing just how much appetite Vancouver renters have for fresh supply. Developed by Peterson Group and completed in May, the project is already more than half leased.

Inside are 139 units ranging from compact studios starting at $2,195 to three-bedroom suites aimed at families. The spread—studios, one-bedrooms, nearly 50 two-bedrooms, and a handful of larger layouts—is intentional. Peterson wanted the building to capture the shift in who rents in Vancouver: not just students and young workers, but families and downsizers who see renting as a long-term choice.

Financing and policy hurdles

If purpose-built rental is gaining traction, it’s not because the economics suddenly make sense. Barrett Sprowson, Peterson’s senior vice-president of residential, notes that financing a rental tower is far more capital-intensive than a condo project. Developers must commit significantly more equity, with payback spread over decades.

To make Revolve viable, Peterson relied on the Canada Mortgage and Housing Corporation’s Rental Construction Financing Initiative, a low-interest program that has underpinned much of the city’s recent rental supply. Locally, the City of Vancouver’s Secure Rental Policy, adopted in 2019, has also been influential by speeding up approvals for mid-rise rental projects in areas once zoned for single-family homes.

Still, challenges remain. “Macroeconomic conditions and financing challenges have compounded the underlying issue of high development cost charges, fees and levies alongside rising construction costs,” Sprowson says. Without measures to reduce those costs, developers say it will remain difficult to deliver rental housing at a price many tenants can afford.

Changing renter expectations

For renters, the surge of new supply isn’t just about numbers; it’s reshaping what rental living looks like in Vancouver. What was once seen as a temporary stop on the way to ownership is increasingly treated as a destination in itself. Families and professionals are searching for stability without a mortgage, and they expect the trappings of permanence—ample storage, flexible layouts and proximity to schools, cafés and transit.

Revolve leans into that shift. Its floor plans range from compact studios to three-bedroom suites, designed to suit different stages of life. Beyond the blueprints, there are gestures aimed at creating a sense of belonging: residents are welcomed with a custom “Moving Day Lager” brewed with nearby Container Brewing. It’s a small detail, but it signals the larger trend—purpose-built rentals aren’t pitching themselves as placeholders anymore, but as homes where tenants can actually put down roots.

What comes next

While today’s conditions give renters more breathing room, developers warn the window may be temporary. Peterson estimates that because only about 200 condo units launched in East Vancouver last year, the number of completions will dip two or three years from now.

In the meantime, projects like Revolve illustrate both sides of Vancouver’s rental market: more inventory, higher quality and a wider range of tenants, but also persistent cost pressures that limit how far the trend can go.

“Rentals are undergoing a shift, moving away from being seen as just a temporary solution while saving for a down payment,” says Sprowson. The challenge for the city will be ensuring that shift lasts—and that today’s supply can keep up with tomorrow’s demand.