Although a suburban region like North Vancouver tends to think in terms of single family home ownership, there's a large part of the population who need rental housing.
New today at PolicyNote.ca is a very interesting analysis of why the housing market hasn't been creating rental housing, and why endless condo development doesn't lead to truly affordable housing.
Multi-unit housing construction has increasingly favoured condominiums over purpose-built rental buildings over the past decade. Although a significant share of condominiums in major cities is rented out, they typically have higher rents and represent a less stable housing supply for tenants.
Private developers have favoured condominium development over purpose-built rental buildings because of the higher returns and lower risk involved. Condominium units can be presold, whereas purpose-built rental buildings must be fully constructed before being rented out. … [as well as] preferential tax treatment of owner-occupied housing, which is not subject to tax on imputed rents or capital gains upon sale, whereas investors in rental property are taxed on rental income and 50% of capital gains at their marginal income tax rate. Increasing expectations of capital gains may have made these tax biases more important over time.