If you own property in Vancouver and have been watching the housing market change, you've probably heard about 6-plexes. You might be wondering what all the talk is about. Maybe you've driven through areas like Dunbar or Kerrisdale and seen construction signs for "multiplex developments." Or maybe you're curious about the new housing city regulations your friends are talking about.

Key Takeaways

Why 6-plexes dominate Vancouver's west side:

• Larger lots (50+ feet wide) allow better designs and more units
• Higher property values justify steep development costs despite $294K+ density fees
• Design efficiency - six units enable cost-saving mirrored layouts vs. custom 5-plex designs
• Perfect market fit - family-friendly density that preserves neighbourhood character
• Policy timing - October 2023 multiplex rules unlocked development potential

Bottom line: West side's bigger lots + premium resale prices + efficient design - bonus density = ideal 6 plex conditions, explaining why permits there outnumber east side 3:1.

A 6 plex is exactly what it sounds like. It's a housing building with six separate homes, just like a duplex or 4 plex but with more units. These six homes can be in one building or spread across several buildings on the same lot. In Vancouver's housing market today, families struggle to find affordable homes and property owners want to maximize the use of their land. The 6 plex has become a great solution for both problems.

"If we just replace single house development... if we replace that with plex development, we'd be almost at 15,000 units per annum of housing that would be available to people at a price range that would be attainable, where right now it's not attainable at all." - Jake Fry, Founding Partner of Smallworks

The timing is perfect. Vancouver's housing crisis has gotten so bad that regular single-family homes just don't work for our growing population anymore. Young workers can't afford to buy homes. Families are being pushed out of neighborhoods where they grew up. And at the same time older homeowners have valuable properties that feel too big and hard to maintain as they age.

What did the city do? They created new multiplex rules in October 2023. These rules let property owners build up to six separate strata-titled homes on lots that used to only allow one house.

“We have a broad array of housing types that can now actually be delivered, and it can be delivered by citizen developers. And what's being delivered now, you have a host of options” according to Jake.

What makes the 6 plex special is how it helps neighbourhoods keep their character while adding more homes. These are smaller, family friendly units on quiet streets, something Vancouver's west side has needed for decades.

This is why the 6 plex has become so popular on Vancouver's west side. Unlike big apartment buildings on busy roads that feel separate from the community, a 6 plex fits right into existing neighbourhoods. At the same time, it gives six families good housing options.

"If we just replace single house development... if we replace that with plex development, we'd be almost at 15,000 units per annum of housing that would be available to people at a price range that would be attainable, where right now it's not attainable at all."

These buildings are going up all over the city, but the west side has really embraced this type of housing. There are good reasons why.

The west side has bigger lots, higher land values, and better development costs. This gives 6 plexes more design options and better money-making opportunities. West side properties are perfect for 6 plex development. But there's more to it than just lot sizes and zoning rules. Smart property owners see a chance to protect their investments for the future while helping their community's housing needs.

Economic Framework

Bonus Density Structure

Vancouver charges a bonus density fee for 6 plex buildings. This fee is based on how much floor space you build between 70% and 100% of what's allowed. The fee changes a lot depending on which of three areas your property is in. Most developers choose to pay cash because it's the easiest option for multiplex projects.

Area A (west of Oak Street) has the highest fees. The rates are $3, $65, or $140 per square foot depending on how wide your lot is 33 feet, 44 feet, or 56 feet. Here's an example: a typical 7,000 square foot property that's 56 feet wide by 125 feet deep would pay a $294,000 density bonus fee when you build the maximum allowed space. This big cost comes on top of regular building permits, development fees, design costs, and other construction costs.

These high bonus density fees push developers to maximize their resale amount per square foot. They do this by building smaller, high-earning units like two-bedroom or small three-bedroom homes. Rather than build fewer large units, developers, including first time “citizen developers” want to add more units to cover the big upfront costs.

Land Economics and Geographic Variations

A construction pro forma, or the profit potential, paints a very different picture between multiplexes on Vancouver's east and west sides. West side properties in areas like Point Grey and Shaughnessy have higher property values.

But homes also sell for a higher dollar per square foot. This means even with big bonus density fees, the finished units can charge rents or sale prices that make complex developments worth it.

East side properties benefit from lower density bonus and land prices. But this is balanced by sales price per square foot which is lower compared to Vancouver’s west side.

Development Economics and Design Efficiency

If a new 6 plex development makes financial sense depends a lot on the design type and how efficient it is. Custom designs cost a lot more because they need extra design time, more coordination, and special materials. This reduces the money saved from building similar units.

6 plex developments work well because they have an even number of units. This lets builders use repeat layouts and mirrored layouts, which saves money on construction. Using the same unit design reduces complexity and material costs while making construction easier.

5 plex developments run into a problem with customization because they have an odd number of units. They need at least two different layouts, and often 3, to fit all the units on one property. This custom requirement makes design and construction more expensive.

The money advantage of 6 plex developments shows up in permit data. West side Vancouver has almost three times more 6 plex applications than 5 plex applications. This proves that choosing the right number of units affects development decisions.

Geographic Analysis

Vancouver Lot Size Distribution: City-Wide Lot Size Patterns

Looking at Vancouver's lot sizes shows a clear split between the east and west sides that affects where 6 plexes get built. While most lots in the city are 33 feet wide, there are big differences between neighbourhoods that create different building opportunities.

East vs. West Side Differences

The east and west sides of Vancouver have very different lot sizes. This helps explain where developers choose to build. East side properties are usually narrower, with many lots at or below the 33-foot minimum needed for multiplex buildings. These smaller lots limit what developers can build and often force them to use less efficient designs.

The west side is different. It has many more lots that are 50 feet wide or larger. These bigger lots give developers more room to work with for 6 plex buildings, including designs with courtyards and more spacious units. Because the west side has more wide lots, it makes sense that most 6 plex permits are filed there. Developers can fit more units and create better designs that make financial sense.

This lot size benefit, along with the higher property values discussed earlier, creates a double advantage. This pushes most 6 plex development to west side neighborhoods. These areas have both the space and the money conditions needed for successful multiplex projects.

West Side Optimization

The west side of Vancouver has become the preferred location for 6 plex development for several key reasons:

Lot Size Advantages

• More lots are 50 feet wide or larger with more space and design flexibility and options

Economic Benefits

• Higher property values justify development costs
• Premium neighbourhoods like Point Grey and Shaughnessy command resale values
• While bonus density fees are higher, the revenue potential offsets costs

Design Efficiency

• Even numbered units are optimal configurations because of ability to repeat unit designs for cost savings
• More units offers better economies of scale in construction

Market Conditions

• Strong demand for smaller units in desirable neighbourhoods
• Limited supply of family oriented units in low-density areas so target market is willing to pay premium prices for west side locations

These factors combine to create ideal conditions for 6 plex development, explaining why permit applications are concentrated on Vancouver's west side.

Conclusion

The 6 plex has emerged as the go-to housing solution for Vancouver's west side because it perfectly balances several key factors. The combination of larger lot sizes, higher property values, design flexibility, and strong market demand creates ideal conditions for this type of development.

While east side properties offer lower purchase prices, the west side's advantages in lot size, earning potential, and development efficiency make it the clear winner for 6 plex projects. For property owners looking to maximize their investment while contributing to Vancouver's housing supply, the 6 plex represents a smart way to meet both financial and community goals.

As Vancouver continues to address its housing crisis, the success of west side 6 plex developments stands as a model for how thoughtful density leads to better liveability.