Olympic Village 2.0 Is Happening Right Now with Jack Bernard

Listen On: Apple Podcasts | Spotify

Where Are All the New Homes? Jack Bernard on Why Developers Are Pumping the Brakes

Vancouver’s real estate market is in a state of flux—and few people understand the moving pieces better than Jack Bernard, Vice President of Client Services at Rennie. In this episode of the Vancouver Real Estate Podcast, Jack walks listeners through what’s happening behind the scenes in pre-sale development and why Metro Vancouver might be headed for an inventory crunch in the coming years.

The Pivot from Concrete to Wood Frame: Economics of Today’s Development

One of the most important insights from Jack: developers are shifting toward wood frame and townhome projects, even when zoning permits denser, high-rise developments. Why? It all comes down to risk management and feasibility.

Concrete towers require a higher percentage of pre-sales—often 70% or more—to secure financing. With market uncertainty, interest rate sensitivity, and slower absorption, this level of commitment is simply too risky for many developers right now. Wood frame projects, on the other hand, can be financed with fewer pre-sales and are faster to build. That makes them an attractive option for developers looking to deliver homes without betting on a volatile market.

In fact, Jack points out that some developers are choosing not to maximize their density entitlements. In transit-oriented locations like Surrey or Langley, developers have opted to stick with six-story builds instead of pursuing high-rises, despite having the ability to go taller. These are strategic decisions based on financing realities, construction costs, and end-user demand—not policy ambitions.

What Happened to All the Pre-Sales?

There was optimism in late 2024 and early 2025. Pre-sale sales volume had been climbing for several months, and it looked like confidence was returning. But then tariffs hit, global financial volatility increased, and the market paused again. According to Jack, this setback caused developers to rethink timelines and marketing strategies. Some delayed launches. Others restructured offerings or walked away altogether.

For concrete towers in particular, the path to market has lengthened dramatically. Jack shares that projects used to move from feasibility to launch in 12–18 months. Today, many are taking 2–3 years to reach market readiness.

Meanwhile, developers are leaning heavily on data, gut-checking every element of a project—from suite mix to deposit structure—before launching. The costs of a failed launch are simply too high. A pre-sale campaign can easily cost $1–2 million, and without hitting financing benchmarks, that money is lost.

A Shrinking Inventory Pipeline

This development slowdown has one major implication for the broader market: fewer homes will be delivered in the next few years.

There is a large wave of concrete completions hitting the market in 2025, mostly from projects launched in 2021. But beyond that, the pipeline thins out considerably. Many new projects are paused or restructured, which means fewer homes will be ready in 2026, 2027, and beyond. Jack forecasts a meaningful reduction in completions, which could drive up prices in the mid-term due to constrained supply.

That means buyers who are looking today—especially in new, move-in ready homes—might be in a strong position to benefit from rising values in the years ahead.

What Buyers Should Know About Pre-Sale vs. Resale

Right now, resale is outperforming pre-sale in terms of activity. But that’s not the whole story. Jack emphasizes that pre-sale still plays a crucial role in Vancouver’s housing supply—and that it offers unique advantages for the right buyer.

With flexible deposit structures, the ability to avoid mortgage insurance, and fixed pricing in an inflationary environment, pre-sale homes are still a smart option—particularly for family investors and long-term planners. Jack himself purchased a one-bedroom pre-sale unit for his son, betting on long-term value, rental income, and eventual ownership transfer.

Buyers today should also be paying close attention to developer-owned standing inventory. These are completed homes that never sold during pre-sale and are now available to move into. They offer all the benefits of new construction—warranty, modern layouts, prime locations—without the wait.

Jack points to Boza’s Pier West in New Westminster as a standout example: waterfront, high-rise units with top-tier finishes and immediate occupancy. These opportunities exist across the region but are not always listed on MLS, so buyers and realtors need to dig deeper to find them.

What About Investors?

Investor activity has slowed, especially among smaller, individual buyers. Jack attributes this to two main factors: unsteady government policy and reduced returns. Many investors, particularly international ones, were burned by mid-construction rule changes—like the foreign buyer ban or short-term rental restrictions—and are now hesitant to re-enter the market.

That said, institutional investors and “family investors” are still active. Families with equity are purchasing pre-sale homes with a long view—whether it’s for kids, retirement, or rental purposes. This is the new wave of investment, focused more on lifestyle and generational planning than fast returns.

Where to Watch in the Next 3–5 Years

Jack highlights several areas with strong upside:

• North Vancouver – Underbuilt and consistently in demand.
• New Westminster – Competitive pricing and a wave of new product.
• Surrey & Langley – Expanding infrastructure, transit access, and master-planned communities.
• Port Moody and Coquitlam Centre – Poised for growth with incoming density and underutilized land.

The common thread: proximity to transit, community planning, and growth potential. Whether buyers are looking to live or invest, these areas offer long-term promise.

Frequently Asked Questions

Why are developers favoring wood frame buildings over concrete towers?

• Wood frame projects are quicker and cheaper to build, require fewer pre-sales to secure financing, and carry less risk in uncertain markets.

Is now a good time to buy pre-sale in Metro Vancouver?

• Yes, especially if you’re a long-term buyer. With fewer launches expected and a potential inventory crunch on the horizon, today’s pricing and incentives can offer strong future value.

What’s happening with concrete tower development in Vancouver?

• Many concrete projects are delayed or reevaluated due to financing challenges and high construction costs. As a result, fewer towers are launching and completing, which could reduce future housing supply.

Where should I be looking to invest or buy in 2025?

• Jack Bernard suggests targeting North Vancouver, New Westminster, Surrey, Langley, Port Moody, and Coquitlam Centre for their growth potential and development activity.

How is resale performing compared to pre-sale?

• Right now, resale is more active due to availability and pricing. However, pre-sale offers advantages like flexible deposits, brand-new product, and potential for long-term appreciation—especially when inventory becomes scarce.

Last updated April 21, 2025 by Matt Scalena PREC.