When you think about the residential market, price escalation and affordability of housing, more and more cities are looking up. The idea is very simple: build taller buildings and make more use of limited land, especially in the most sought-after neighborhoods. That philosophy is catching on, for example in Basque Countrywhere new apartments are proposed on buildings that already exist, or in Madrid, which aspire too to expedite procedures. In Vancouver (Canada) they have decided to go one step further and create a kind of ‘XL laboratory’ to answer a key question:
Would the residential crisis be alleviated if we reduced bureaucracy and were more flexible with buildability?
An impossible market. Living in Vancouver is not easy. Not at least if you don’t have a generous salary and you aspire to stay in a (more or less) well-located and (more or less) comfortable home. a study disclosed by Frontier Center shows that the British Columbia city deals with one of the least affordable markets on the planet. Canadian families who want to purchase a property need, on average, to invest the equivalent of 10.8 full years of gross income. And that for a ‘normal’ cost house.
Globally, it is only surpassed by Hong Kong, Sydney, San Jose and Adelaide. The situation in Vancouver is actually worse than in Los Angeles, San Francisco, New York or any other large conurbation in North America. The rental market does not offer much comfort either. According to Zillow Rentalsthe average income is close to 2,900 dollars and last year it was above 3,000. Against this backdrop, the authorities have set the goal of injecting into the market 83,000 new homes in the coming years.
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And what is the reason? Beyond the imbalance between supply and demand or the arrival of immigrants with an investment mentality, a few days ago, in a column published in The New York TimesBinyamin Appelbaum mentioned another key factor: excessive bureaucratic rigidity and regulatory blockage, a problem that is not exclusive to Canada.
“Cities have largely lost the power to approve projects. To prevent officials from acting against the public interest, we have taken away the power to act in its favor,” regrets Appelbaumveteran reporter The New York Times and specialist in economics and business. “We are so committed to justice that we have lost sight of the injustice of inaction.”
“Restore affordability”. In his analysis, the expert recalls the construction limitations imposed in coastal cities like Vancouver in the 1960s, the effects of the 2008 financial crisis, the structural housing deficit (in 2023 it was estimated that Canada needed 3.5 million of extra homes by 2031 to “restore affordability”) and tension in the rental market.
In the specific case of Vancouver, the geographical limitations of the city are added, constrained between mountains to the north, the ocean to the west and the border with the United States to the south. Also the characteristics of its urban planning, with a large weight of small properties.
Houses, gardens… and skyrocketing prices. “The biggest problem is that Vancouver is a city of single-family homes. It has an imposing skyline in the center, but, if we see it from the air, the vast majority of the land is occupied by houses surrounded by grass,” comment Appelbaum. He is not the only one who highlights this peculiarity of the Canadian metropolis.
In his chronicle he cites another expert, Alex Hemingway, senior economist at BC Policy Solutions, who questions this use of land in a city with residential m2 skyrocketing and rents through the roof. Appelbaum even cites specific cases in which apartment towers have given way to mansions, which further reduces the housing stock.
A laboratory called Senakw. Despite this context, for a few years Vancouver has hosted a special project: in the heart of the city, near English Baythere is a wide strip of land 10.48 acres (just over four hectares) in which large apartment towers are being built. What’s more, the objective is to build one of the residential neighborhoods there with greater density from all over Canada: around 6,000 homes spread across 11 towers.
His name is Sen̓áḵw and it is much more than theory or a plan drawn up on paper. The first building of the initial phase (which will encompass 1,049 homes spread over three towers of 27, 32 and 40 floors) is almost ready and the idea was for its first tenants to move in at the end of May. The Realist precise that the promoters want to finish the second block in the summer and the third before 2027.
How is it possible? Very easy. Because Senakw is not just another real estate development. In fact (and this is the key) the 4.4 hectares it covers enjoy a special status that free it from the regulatory straitjacket that limits construction in other neighborhoods in Canada. The reason: that land does not depend on the Vancouver authorities, but on the Squamishan indigenous people who occupied the land long before the first Western settlers arrived.
The land, located on the south bank of False Creek, was home to one of the 23 ancestral populations of Sḵwx̱wú7mesh Stélmexw, but in 1913 the natives residing there were evicted “by force”. Although the British initially recognized the area as a native reserve, the value of the land led the provincial government to pressure their families to leave in the early 20th century. Their offer was very simple: either accept the payments offered or risk be left with nothing. Then the Government burned their homes. That episode gave rise to a decades-long lawsuit that ended in 2003when justice returned 4.4 hectares to the Squamish Nation.
“More than buildings”. A decade and a half after that historic ruling, in 2019, the Squamish Nation voted in favor of developing a residential project on the land and thus creating “a legacy” for the next generations of natives. The result is Senakw, an ambitious project of 6,000 homes spread over a dozen blocks that, in some cases, will reach the 58 plants. The first phase alone will include 1,400 houses in three blocks, commercial spaces, a pavilion, areas for commerce and community services and green areas.
“For the Squamish people, this moment represents much more than buildings. It is about returning to the land from which our ancestors were forcibly removed more than a century ago, about creating opportunities for our members,” claims the organization. The idea is reserve apartments with subsidized rents for members of the Squamish Nation, help families in the community by offering below-market rents, and reserve spaces to showcase Native culture and art.
The great unknown. To carry out a project of such magnitude, it is not enough to have the land; resources are also needed. To achieve them, the Squamish have several ways. One is the money that they will receive through rents (the project also includes rents at market prices). Another, the support of his partner: first Westbank and later from OPTrustresponsible for one of the largest pension funds in Canada. The Squamish Nation maintains a 50% stake in the first two phases of Senakw and 100% in future phases three and four.
The margin that Senakw enjoys to not having to adhere to regulations that have restricted the height and density of other buildings in Canada represents an opportunity and there is who waits that serves to alleviate the housing problem in Vancouver, but that does not mean that the project is free of unknowns: Will its residential offer be right? What effects will greater population density have on public services, from gardens and parks to parking spaces, schools or hospitals? And above all… Has Vancouver found the recipe for the residential crisis?
Images | Matt Wang (Unsplash) and Squamish Nation
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