Anthem's Big Bet: Are Two New Towers the Future of Vancouver's Rentals?

VANCOUVER, BC – December 05, 2025 – In a move signaling strong confidence in Vancouver's notoriously tight real estate market, developer Anthem Properties has announced a major joint venture to construct two mixed-use rental towers. Backed by an unnamed institutional investment partner, the projects will add nearly 300 new rental homes to the high-demand Cambie Corridor and Mount Pleasant neighborhoods.

The announcement arrives as Vancouver grapples with a persistent housing crisis, where even a recent uptick in vacancy rates to a 20-year high of 1.6% does little to alleviate the pressure on renters. With construction set to begin in early 2026, these developments represent more than just new buildings; they are a calculated wager on the long-term viability of purpose-built rentals and a potential blueprint for how private capital can address a public need.

The 'Build and Hold' Investment Thesis

At the heart of this venture is a strategic decision that speaks volumes about the future of urban real estate investment. Anthem and its partner are not looking to build and sell condos for a quick profit. Instead, they are pursuing a "build and hold" strategy, positioning themselves as long-term landlords. This approach is increasingly favored by institutional investors—such as pension funds and large insurance companies—who seek stable, predictable cash flow over decades.

Jordan Carlson, Anthem's Executive Vice President of the Investment Group, framed the move as a response to a "structurally undersupplied housing market," anticipating a "coming bounce-back in demand." This long-term perspective is crucial. It suggests that major investors see Vancouver's current economic headwinds and slight market softening as temporary, overshadowed by the unshakeable fundamentals of strong population growth and a chronic shortage of housing. For these investors, the difficulty of homeownership for the average Vancouverite isn't a bug; it's a feature that guarantees a permanent and growing class of long-term renters.

This strategy is becoming a core part of Anthem's playbook. The company has engaged in similar partnerships, such as its 2024 venture with Crestpoint Real Estate Investments for a 32-storey rental tower in the West End. By repeatedly partnering with institutional capital, Anthem is creating a scalable model for financing and delivering large-scale rental projects that might otherwise be unfeasible in a high-cost environment.

Deconstructing 'Affordable' in an Unaffordable City

While any new supply is welcome, the critical question for many Vancouverites is one of affordability. The press release highlights that the towers will offer an "appealing mix of affordable and family-oriented units." In a city where the average asking rent for a one-bedroom apartment hovers around $3,100, such claims demand scrutiny.

The key lies in municipal programs. The Fraser Street project, for instance, is part of Vancouver's Moderate Income Rental Housing Pilot Project (MIRHPP). This requires that at least 20% of the residential floor area be reserved for households with moderate incomes—those who earn too much for social housing but are priced out of the market. While not deeply subsidized, these units offer a crucial foothold for middle-income earners like teachers, nurses, and service workers.

Furthermore, the emphasis on "family-oriented" units directly addresses a significant gap in the market. The Fraser Street development will include 38 two-bedroom units and one three-bedroom unit. In a city dominated by studios and one-bedrooms, the lack of larger, family-sized rentals is a primary driver of urban exodus. By incorporating these larger floor plans, the projects aim to retain families who would otherwise be forced to move to the suburbs in search of adequate space, contributing to a more diverse and stable community fabric.

Reshaping Neighborhoods Brick by Brick

The two towers are not being built in a vacuum. They are set to rise in two of Vancouver's most dynamic and evolving neighborhoods, promising to alter their local character.

The 18-storey tower on Heather Street is situated near the massive Oakridge Park redevelopment. This area is already undergoing a profound transformation into a dense, transit-oriented municipal town centre. Anthem's project will slot into this new urban vision, adding 183 rental homes and ground-floor retail to a neighborhood bracing for a massive influx of residents and activity. Its success will depend on its integration with the broader master plan and its ability to contribute positively to the emerging community infrastructure.

Meanwhile, the 14-storey tower in Mount Pleasant, near Fraser and Kingsway, lands in a neighborhood known for its vibrant arts scene, independent businesses, and distinct character. This area is also under development pressure from the city's Broadway Plan, which encourages taller buildings along key corridors. While the 110 new rental units and 4,200 square feet of retail will provide much-needed housing and commercial space, such projects often fuel community concerns about gentrification and the displacement of beloved local businesses that can no longer afford rising commercial rents.

The challenge for Anthem will be to ensure these developments become integrated parts of their communities, not just isolated residential blocks. The inclusion of at-grade retail is a strategic step in this direction, but the long-term impact on the unique social and economic fabric of neighborhoods like Mount Pleasant remains a critical consideration for residents and city planners alike. This delicate balance between densification and preservation is a central theme in Vancouver's ongoing evolution.

A New Model for Urban Housing?

Anthem's joint venture strategy represents a significant trend in North American real estate: the marriage of development expertise with the deep pockets and long-term horizons of institutional capital to tackle the rental housing shortage. By securing full financing and entitlements before breaking ground, this model de-risks the notoriously complex and expensive development process in cities like Vancouver.

This approach provides a clear path forward for increasing rental supply, something government initiatives alone have struggled to achieve at scale. The model is replicable, and its success here could encourage more institutional funds to flow into Canada's rental market, potentially accelerating the construction of purpose-built rental housing across the country.

However, it also underscores a reliance on the private sector to solve a public policy crisis. While these 293 units are a welcome addition, they are a drop in the bucket against a regional housing deficit numbered in the tens of thousands. The projects demonstrate what the market can deliver: high-quality, professionally managed rental homes with a portion dedicated to moderate incomes, driven by a sound investment thesis. The ultimate impact will be seen when the doors open in 2028, and the city can measure whether this innovative partnership genuinely moves the needle on affordability and livability for the average person.