Insights from Matthew McClenaghan, President of EDGAR Development
In a recent episode of the Vancouver Real Estate Podcast, hosts Matt and Adam Scalena sat down with Matthew McClenaghan, President of EDGAR Development, to unpack why Vancouver’s development industry is struggling. Their conversation provides a rare insider’s perspective on affordability, policy, and financing pressures shaping today’s real estate market.
As one of Canada’s most respected developers, McClenaghan brings decades of experience across sales, construction, and development. His perspective highlights both the challenges and opportunities facing Metro Vancouver’s housing sector.
The Rising Cost of Delivery
At the heart of today’s challenges is the simple fact that it has become too expensive to build homes. McClenaghan explains that more than 30 percent of the cost of a new home is tied to fees and taxes. Over the years, new policies have consistently added costs, often $20–$30 per square foot at a time.
In the past, when prices were rising quickly, the market could absorb these added costs. But today, households with normal incomes are hitting their breaking point. Buyers who might have stretched to afford a condo two or three years ago are now priced out. The result is a market where many projects no longer make financial sense.
Inclusionary Housing Policies: Intentions vs. Outcomes
McClenaghan points to inclusionary housing policies as a well-intentioned but flawed example of regulation. These policies often require 15 to 20 percent of homes in a new development to be rented or sold at below-market rates.
The problem is that the remaining 80 percent of homes must then carry the financial burden. In practice, this means higher prices or rents for the majority of buyers and tenants. Developers, who need to show profitability to lenders, cannot move forward with projects that do not pencil out.
While affordable housing is a pressing need, McClenaghan argues that placing the entire burden on private builders and market renters is not sustainable. Without balance, inclusionary policies can unintentionally reduce the total supply of new homes.
Market Limits Are Now Visible
Vancouver has long pushed the limits of what buyers and renters can pay. For years, the market kept pace with added costs. Now, however, those limits are becoming clear.
When large developers begin cancelling projects even after excavation has started, it sends a powerful signal. If the numbers do not work, even the biggest players will pause or walk away. The cancellation of projects in the River District is one such example.
For buyers and investors, this slowdown means fewer new units coming to market, which could keep resale inventory tight in the years ahead.
Developers Are Adapting to Survive
Despite the difficulties, McClenaghan emphasizes that developers are, by nature, optimists. Vancouver remains a world-class city with exceptional fundamentals, and long-term faith in its real estate market is still strong.
At EDGAR, adaptation has meant creating new business lines. Instead of focusing only on speculative condo or rental projects, the company has launched a fee-for-service division. This allows EDGAR to act as a development manager or consultant for non-profits, well-capitalized partners, or construction firms. By diversifying, the company reduces risk while continuing to bring housing to market.
The Fundamentals of Vancouver Still Matter
One of McClenaghan’s most important points is that Vancouver’s underlying value case remains as strong as ever. The city’s natural beauty, livability, and global appeal mean that demand for housing will never fully disappear.
While policy challenges and market pressures create short-term turbulence, the long-term fundamentals of scarcity, lifestyle, and desirability continue to support investment. For developers and buyers alike, the question is not whether Vancouver real estate is valuable, but how best to navigate the current cycle.
What This Means for Buyers, Investors, and the Future of Transit-Oriented Growth
A Strategic Reset, Not a Collapse
The cancellation of projects should not be mistaken for market failure. Instead, it represents a necessary reset. Developers are reassessing budgets, financing, and timelines. This creates short-term pauses but also opportunities for innovation.
Transit-Oriented Development Will Lead the Way
In a cost-sensitive environment, developers will gravitate to locations where land value and demand are most resilient. Transit-proximate sites, particularly those near SkyTrain stations, continue to provide that advantage. These projects offer long-term security for developers and investors alike.
Policy Needs Balance
Affordable housing cannot be solved by shifting costs solely onto private developers or market renters. A balanced approach, combining government subsidies, private investment, and thoughtful zoning, is required to ensure both affordability and supply.
Developers Must Innovate
As EDGAR’s example shows, adaptability is essential. Fee-for-service models, partnerships with non-profits, and creative financing structures will become more common. Developers who diversify their strategies will be best positioned to thrive.
Vancouver’s Long-Term Value Holds Firm
Scarcity of land, proximity to transit, and quality of life continue to underpin the market. For long-term investors, especially those focusing on SkyTrain-oriented development, the current slowdown may create unique opportunities.
Final Thoughts
Matthew McClenaghan’s insights shed light on why Vancouver’s development industry is under strain. Rising delivery costs, inclusionary housing policies, and limited buyer capacity have pushed many projects to a breaking point. Yet, developers like EDGAR remain committed to Vancouver, driven by optimism, adaptation, and belief in the city’s long-term value.
For buyers and investors, the lesson is clear: in uncertain times, fundamentals matter most. Proximity to transit, quality of location, and access to amenities will continue to define the strongest opportunities in Metro Vancouver real estate.