Downtown Vancouver Construction Declines as Costs Rise

Downtown Vancouver Construction Declines as Costs Rise City officials say development no longer pencils out due to high costs and slowing rent growth. Apr. 7, 2026 at 8:06pm Got story updates? Submit your updates here. ›Piles of building materials and tools sit idle, reflecting the decline in new construction projects in downtown Vancouver.Vancouver TodayAccording to Vancouver's community development director, new construction in downtown Vancouver and at the waterfront has 'essentially dried up' as the cost of development has surpassed the benefits. The city's multifamily tax exemption, which provides developers an incentive to build, is seeing declining interest because projects are no longer financially viable. Overall housing development has also declined due to high vacancy rates, skyrocketing construction costs, and slowing rent growth. Why it matters The decline in downtown and waterfront development in Vancouver reflects broader economic trends impacting the real estate and construction industries, including rising material and labor costs that are outpacing rent growth and making many projects financially unviable. This could have significant implications for the city's tax revenue, job market, and overall economic growth. The details According to Chad Eiken, Vancouver's community development director, there is currently not a single large apartment or mixed-use project in the permitting process for the downtown or waterfront areas. This marks a significant shift ...