From Shoebox Glut to Family Homes: Why Multiplexes Are Vancouver’s Next Big Play

There are thousands of shiny new condos sitting empty in Vancouver—and almost none of them are the kind of homes families actually need. Meanwhile, young families are crammed into spaces too small, and homeowners sit on valuable land with no clear way to make it work harder for them. This is the market disconnect no one is talking about—and it’s why multiplexes might just be the smartest move a homeowner can make today.

Let’s unpack how we got here, what’s changed, and why now might be the perfect time to think bigger about the lot you already own.

Part 1: A Market Full of the Wrong Kind of Homes

Developers in Vancouver have been busy. Between 2023 and 2025, thousands of condo units were completed—many of them small studios or one-bedrooms aimed at investors and first-time buyers. But now the music has stopped. As of this spring, 2,179 of those units are still sitting unsold. By the end of 2025, that number is expected to reach 3,493 (Source: Rennie, Apr 16, 2025).

So why aren’t they selling?

Because they’re the wrong product for today’s market. Most of these units are simply too small to meet the needs of the families who actually want to stay in the city long-term. People aren’t looking for shoeboxes anymore—they want space, flexibility, and homes that can grow with them.

And right now, they can’t find them.

Part 2: The Developer Dilemma

You might be wondering: if there’s demand for bigger homes, why don’t developers just build them?

The short answer: they can’t make the numbers work.

Construction costs are basically flat across unit types—about $900 per square foot, no matter what size you’re building (Source: STOREYS, Oct 16, 2024). But the return on that investment drops sharply as the unit gets larger. In one case study, a studio apartment returned 12.6% on cost. A three-bedroom unit? Just 0.07%.

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Unit Type: Studio

Cost to Build ($/ft²): $900

Return on Cost: 12.6%

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Unit Type: 3-bedroom

Cost to Build ($/ft²): $900

Return on Cost: 0.07%

(Source: STOREYS, Oct 16, 2024)

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For developers, larger units don’t make financial sense. So they build fewer of them—or none at all. It’s not personal. It’s math.

Part 3: Families Are Still Looking

Here’s the thing: just because developers aren’t building for families doesn’t mean the demand isn’t there.

The City of Vancouver knows this. Their own targets call for 40% of all new homes to be family-sized (meaning at least two bedrooms) (Source: Housing Vancouver 2024 Targets). But we’re nowhere close to that mark.

If you look at rentals, the story gets even clearer. The vacancy rate for three-bedroom rental units is just 1.9% (Source: CMHC, Dec 2024). That’s extremely tight. Families who want space have very few options, and competition is fierce.

In short: the need is real. The supply is not.

Part 4: A Quiet Policy Shift With Big Potential

In October 2023, the City quietly rewrote the rulebook on what homeowners can do with their properties. For the first time, most RS- and RT-zoned lots became eligible for multiplex development. That means you can now build up to six units on a single lot—and they can be sold individually, thanks to new strata rules.

It’s a big deal. But so far, it hasn’t made a dent in the market. Only 150 multiplex units have been approved citywide since the bylaw change.

That means opportunity.

Part 5: Why This Works for Homeowners

For developers, land is one of the biggest costs. For homeowners, it’s already paid for. That changes the entire equation.

When you build a multiplex on your own lot, you skip the land acquisition cost. You also avoid the profit premium developers need to charge to make a project worth their while. Instead, you get a design tailored to your needs, with the option to sell some units, keep others, or rent them out for long-term income.

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Here’s how the numbers stack up:

Scenario Approx.: Holding a single-family home

IRR Holding: 3-5%

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Scenario Approx.: Building a multiplex

IRR Holding: 12-18%

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This isn’t a fringe idea anymore. It’s the smartest way for many families to turn their land into long-term security while helping close the housing gap in their own neighborhoods.

Part 6: Let’s Talk About Your Lot

If you’re sitting on a full-size Vancouver lot and wondering how to make it work harder for your family, a multiplex might be the answer. You get more space. You generate income. You create options—whether that means housing adult kids, downsizing into one of the units, or selling a few to fund your retirement.

At reVISION Design + Build, we’ve helped homeowners turn this exact scenario into a real, livable plan. We handle the feasibility, design, permitting, and build—all under one roof.

Want to see if your lot qualifies? Book a free 30-minute consultation with our team. We’ll even throw in a sample pro-forma so you can see how the numbers work for you.

Because this market doesn’t need more shoeboxes. It needs homes that actually fit real lives. And that starts with you.