It remains to be seen what revised application comes back following council’s decision to send a proposal to build a new rental apartment building in Ladner back to the applicant.
Earlier this year, council voted to send the market rental apartment building application for a property at 4501 Arthur Dr. back, asking that any future development at the site align with its Mixed Residential (MR) designation in the Official Community Plan (OCP).
In 2023, after presenting a proposed four-storey, 56-unit market rental apartment building for the, city staff subsequently met with the applicant to discuss concerns about the “viability of the project given the current economic climate and general challenges developers across the region have been facing in advancing purpose-built rental projects.”
A report to council noted that, subsequently, the applicant reviewed their proposal and increased the number of units to 81 and the height to five-storeys. The applicant said that additional height and density were necessary to ensure a viable rental tenure building.
The report outlined a pair of options for council, one was to give the application preliminary approval to send it to a public hearing, while the other was to send it back for revisions so that it complies with the OCP.
“It was on that basis that staff commenced the detailed project review and public engagement process. After the public engagement process was completed in October 2024, the applicant advised that the rental building was not financially feasible without additional sources of funding or preferred lending rates from outside agencies such as CMHC or BC Housing,” the report noted.
“The applicant started exploring funding options with these agencies but has advised that construction must start within six months of receiving funding. The applicant would like to progress their application through the land use approval process and is seeking council approval prior to pursuing opportunities to secure funding for the project.”
Less viable for purpose-built rentals in Delta?
A Metro Vancouver report last year concluded it is less viable building purpose-built rental apartment buildings in the City of Delta compared to other Metro Vancouver communities, noting the region’s purpose-built rental development has been facing financial feasibility challenges.
Those challenges include increases in interest rates and construction costs, which resulted in higher equity requirements and lower returns on investment for developers of rental housing.
In Metro Vancouver, there were fewer than 10,000 new purpose-built rental units built between 2011 and 2021, compared to about 87,000 new renter households.
The report noted that a new resource guide, “What Works: Local Government Measures for Sustaining and Expanding the Supply of Purpose-Built Rental Housing, reflects current challenges, barriers but also opportunities for purpose-built rental housing in the region.
The guide explains how a six-storey mid-rise market rental building was modelled under “typical” and “alternative” conditions in three representative market tiers in Metro Vancouver, including higher priced markets, moderate priced markets and lower priced markets.
Delta, along with Surrey, White Rock, Pitt Meadows, Maple Ridge and Langley, is in the lower priced market.
“Under ‘typical’ or baseline conditions, a six-storey market rental project in these parts of Metro Vancouver are not shown to be viable according to return metrics outlined above. While land acquisition costs are relatively lower than the other two market tiers, market rents are also comparatively lower,” the guide notes.
The guide also looks at alternative scenarios to make rental projects more attractive such as the combined impacts of pre-zoning, reduced parking, financing, reduced development fees and even providing the land.
The rental situation in Metro
A recent Metro report, Housing 2050: Regional Housing Needs Report, notes more purpose‐built rentals are needed to meet the needs of renters and provide meaningful security of tenure. Most new rental housing is in the secondary rental market, such as rented condominiums, secondary suites and laneway homes.
Yet another recent regional district report, the Metro Vancouver Housing Data Book 2025, notes rental construction continues to be at a 20‐year peak, with 37 per cent of all starts and 31 per cent of all completions being purpose‐built rentals.
That report also notes that, in 2024, rental vacancy rates increased to 1.6 per cent, from a low of 0.9 per cent in 2022 and 2023. However, current vacancy rates are still well below the three per cent that is considered a healthy vacancy rate.
