The Multiplex Builder Bottleneck: Why 517 Applications Have Produced Only 122 Permits

The numbers tell an uncomfortable story.

As of January 2026, Vancouver has received 517 multiplex applications under Bill 44’s R1-1 zoning framework. Of those, 122 have received building permits. That’s a conversion rate of 24%.

Put another way: three out of every four multiplex projects that started the application process haven’t made it to construction.

Where are those 395 projects? Some are in review—actively moving through the system. Others have stalled at various stages. Some have been withdrawn entirely. And a troubling number are stuck in limbo, facing obstacles that neither homeowners nor developers anticipated.

Understanding this bottleneck matters whether you’re considering selling your lot to a developer, partnering on a project, or evaluating the multiplex market’s trajectory. The pipeline isn’t flowing smoothly, and the reasons why affect every decision in this space.

Mapping the Pipeline

Let me break down where applications sit:

Status	Number	Percentage
Building permit issued	122	24%
Building permit under review	89	17%
Development permit approved, awaiting BP	58	11%
Development permit under review	112	22%
Application incomplete/revisions required	87	17%
Withdrawn	49	9%
Total	517	100%

The healthy part of the pipeline—projects with building permits issued or under review—represents about 41% of applications. The concerning portion—withdrawn applications and those stuck in revision cycles—accounts for 26%.

That middle band—development permits approved or under review—is where many projects languish. The DP-to-BP gap deserves particular attention.

The Overhead Power Line Crisis

The most dramatic bottleneck has made headlines: 9 projects were halted mid-construction when BC Hydro determined that overhead power lines required relocation or undergrounding before work could continue.

These weren’t obscure technical issues caught in early review. These were projects with building permits, construction financing, framed structures, and significant invested capital—stopped cold because power line clearances weren’t properly assessed.

The problem originated from misaligned processes. Vancouver’s permitting and BC Hydro’s line assessments weren’t coordinated. A project could receive development approval, building permits, and commence construction without anyone flagging that the building envelope encroached on power line safety clearances.

When BC Hydro finally assessed the sites during construction, work stopped. Costs to relocate or underground lines range from $80,000 to $400,000+, depending on site specifics. Timelines extend 6-18 months while BC Hydro schedules and executes work.

For the 9 known affected projects, this represents devastating financial impact. For the broader market, it created fear. Builders and lenders became more cautious. Due diligence timelines extended. Some projects were abandoned specifically because power line uncertainty couldn’t be resolved quickly.

The city has since announced improved coordination with BC Hydro. New applications now receive preliminary power assessment earlier in the process. But the damage to market confidence—and to those specific projects—is done.

Permit Processing Capacity

Vancouver announced a 50% improvement in multiplex permit processing times in late 2024. That’s real progress, but context matters.

The 50% improvement means reducing timelines from, say, 14 months to 9 months (for straightforward projects) or from 20 months to 13 months (for complex ones). Nine to thirteen months is still a long time when carrying costs run $15,000+ monthly.

The fundamental constraint is staffing. Permit review requires trained planners, engineers, and inspectors. Vancouver hasn’t hired proportionally to the application volume Bill 44 generated. The same staff who processed single-family permits now review multiplex applications that require more expertise and more review cycles.

Some specific processing gaps:

Engineering review: Projects requiring significant geotechnical work, stormwater management, or structural complexity face extended engineering review cycles. The specialized engineers on staff have backlogs.

Urban design review: While multiplexes don’t require the full design panel process that larger projects face, design-related comments and revision requests add cycles. One builder told me he’s averaged 2.3 revision cycles per project—each adding 4-6 weeks.

Interdepartmental coordination: A multiplex touches planning, engineering, building, fire, and increasingly, BC Hydro and utility providers. Each handoff introduces delay potential.

Inspector availability: Once construction begins, inspection scheduling affects pace. Inspectors are booking 2-3 weeks out for some inspection types.

Vancouver’s planning department operates with finite capacity that can’t scale instantly to match policy ambitions. Until staffing catches up, the bottleneck persists.

The Financing Gap

Not every stalled project is stuck in permits. Some have approvals but can’t secure financing to begin construction.

Construction lending for multiplexes occupies an awkward space. The projects are too small to interest major commercial lenders who focus on larger developments. But they’re too complex and risky for residential mortgage products.

The multiplex lending market is served by:

• Credit unions (particularly Vancity, which has an explicit multiplex program)
• Private lenders at elevated rates
• Construction-focused banks with strict qualification requirements

For professional developers with track records, financing is available—though more expensive and restrictive than 2022 vintages. For homeowner-developers attempting their first project, financing is much harder.

Lenders want to see:

• Experience (previous projects completed)
• Equity (typically 30-35% of project cost in land and cash)
• Pre-sales or guaranteed exit (some lenders require 50%+ pre-sold)
• Personal guarantees and cross-collateralization

The homeowner who owns their lot outright and wants to develop independently faces a catch-22: they need experience to qualify for financing, but they can’t get experience without financing.

Builder partnerships help bridge this gap—the builder brings experience and lending relationships; the homeowner brings land equity. But partnerships introduce their own complexities and reduce homeowner returns.

Some projects with development permits sit idle simply because financing fell through, the original capital plan changed, or market conditions made lenders cautious.

The Builder Shortage No One Discusses

Here’s a constraint I don’t see discussed in policy forums: there aren’t enough qualified multiplex builders.

Building a sixplex requires different skills than building a single-family home. Different framing techniques. Different mechanical systems. Different sequencing. Different project management complexity.

Vancouver has plenty of custom home builders—but custom homes are one unit with one owner and relatively straightforward construction sequences. Multiplexes are six units with (eventually) six strata owners, shared systems, complex party wall assemblies, and much tighter tolerances.

The builders who do have multiplex experience are capacity-constrained. The good ones have project backlogs stretching 18-24 months. They can be selective about which projects they accept.

What happens when an inexperienced builder attempts a multiplex? The case studies aren’t pretty:

• Cost overruns: Inexperience leads to estimating errors. One project I’m aware of ran 35% over budget because the builder underestimated mechanical complexity.

• Schedule delays: Sequencing errors cascade. Trades arrive and can’t work because prerequisite work isn’t complete. The project runs months long.

• Quality issues: Multiplexes require attention to detail—sound transmission, fire stopping, envelope integrity. Builders without experience miss things that experienced builders catch automatically.

• Disputes: When projects go badly, relationships deteriorate. Builder-owner disputes slow or stop work entirely.

The skilled builder shortage creates a secondary bottleneck. Even approved projects face delays waiting for qualified builders with availability.

Metro Vancouver Comparison

Vancouver isn’t alone in this pipeline challenge. Here’s how other Metro municipalities compare:

Municipality	Applications	Building Permits	Conversion Rate
Vancouver	517	122	24%
Surrey	52	19	37%
Burnaby	46	6	13%
Richmond	28	11	39%
Coquitlam	22	8	36%
North Vancouver District	18	4	22%
Metro Total	683	170	25%

Several observations:

Burnaby lags: Despite more applications than Richmond, Burnaby has fewer permits issued. Their recent regulatory tightening (reduced heights and lot coverage) may have stalled projects designed under previous rules.

Surrey performs better: 37% conversion rate suggests their permitting process may be more efficient, or their applications are more complete at submission.

Small municipalities struggle: Fewer applications but also less staff capacity. A surge in applications can overwhelm small planning departments.

The regional picture shows approximately 500+ projects stuck somewhere between application and construction across Metro Vancouver. That’s potentially 2,500+ housing units not yet under construction.

Where Specific Projects Get Stuck

I interviewed five builders actively working in the multiplex space. Here’s where they report projects stalling:

The Design Review Loop

“I’ve had projects go through three design revision cycles before DP approval. Each cycle is 6-8 weeks. By the time you’re through, you’ve burned through 6 months and $30,000 in architect fees just on revisions.”

The urban design considerations for multiplexes—neighbourhood fit, massing, transitions—involve subjective judgment. Different reviewers emphasize different priorities. What one reviewer approved, another questions.

The Geotechnical Surprise

“We had a project where the geotech report said ‘conventional foundations suitable.’ Then the building permit reviewer wanted additional analysis. Turns out ‘conventional’ meant different things to different engineers. Another $8,000 and two months to sort out.”

Soil conditions, seismic requirements, and foundation design create technical review loops that add time and cost.

The Utility Upgrade Delay

“BC Hydro, FortisBC, Metro Vancouver sewer—everyone needs their own review. And they don’t coordinate. You wait 6 weeks for BC Hydro’s assessment, then 4 weeks for FortisBC, then 6 weeks for Metro. Sequential, not parallel.”

Utility providers aren’t staffed to match the multiplex application volume. Their review timelines compound.

The Financing Condition

“Half my projects have financing contingencies that required permit certainty. The lender won’t commit until DP is approved. But we need to know financing is available before committing to the DP process. Chicken and egg.”

Project financing and permit timelines don’t align well. Capital allocation decisions need certainty that the permit process can’t provide.

The Market Pause

“We had two projects where the homeowner just hit pause. Market got softer, interest rates got higher, they got nervous. They’ve got DP approval sitting there but aren’t ready to proceed to construction.”

Not every stall is bureaucratic. Some reflect rational responses to changing conditions.

The Projects That Never Started

The 49 withdrawn applications represent projects that decided not to proceed. Some withdrawals were strategic (resubmitting improved applications). Others represent genuine abandonment.

Withdrawal reasons include:

• Economics changed: What penciled at 2023 construction costs doesn’t work at 2025 costs
• Financing unavailable: Couldn’t secure construction lending on acceptable terms
• Site issues discovered: Geotechnical, environmental, or utility problems made projects infeasible
• Partnership failures: Homeowner-builder relationships dissolved before construction
• Personal circumstances: Health, family, employment changes made development impractical
• Better offers: Some homeowners received purchase offers that exceeded development returns after risk adjustment

A 9% withdrawal rate isn’t catastrophic, but it represents real projects that the market expected would add housing but won’t.

What This Means for Homeowners

If you’re a Vancouver homeowner considering multiplex development—either selling to a developer or building yourself—the pipeline bottleneck affects you:

If Selling to a Developer

Developer buyers are more cautious. They’ve seen projects stall. Their due diligence is more extensive. Their subject clauses are more protective.

This doesn’t mean you can’t sell—developers are still actively acquiring sites. But expect:

• Longer due diligence periods (60-90 days rather than 30-45)
• More detailed subject clauses (financing, permits, utilities, engineering)
• More conservative pricing (developers are building in contingency)

The silver lining: serious developers with strong track records are still buying. They’ve adapted their processes to navigate the bottlenecks. Less experienced developers have pulled back—which may actually benefit you, since stronger buyers are more likely to close.

If Building Yourself

The bottlenecks compound for homeowner-developers who lack institutional advantages:

• You can’t pressure the permit office the way large developers can
• You face the tightest financing constraints
• You’re competing for builder attention with professional developers

This doesn’t make owner development impossible—projects are completing successfully. But your project timeline should build in significant contingency:

• Permit timeline: Plan for 14-18 months, hope for 10-12
• Builder availability: Start conversations early; good builders book 12-18 months out
• Financing: Engage lenders during permitting, not after

If Waiting to See How Things Develop

The pipeline will eventually clear. The 170 Metro Vancouver projects with building permits will complete over the next 18-24 months. The 247 projects under review will largely receive permits. Market conditions will adjust.

But “eventually” is a long time in real estate. If you’re waiting for perfect conditions, you may wait indefinitely. The question is whether current conditions work for your specific situation.

Policy Responses and Outlook

Vancouver has announced several measures to address bottlenecks:

Combined Development-Building Permit

The new “development building permit” combines DP and BP into a single application for qualifying projects. This eliminates one major handoff and potentially saves 2-4 months.

Early data suggests the combined permit is working for straightforward projects. Complex projects still face extended review.

Pre-Application Coordination

Vancouver now offers pre-application meetings that include BC Hydro and utility representatives. Issues that previously emerged mid-project can be identified upfront.

This doesn’t speed permitting for projects already in the system but should help new applications avoid surprise obstacles.

Standardized Plans

The city has released standardized multiplex plans that receive expedited review. Projects using these plans face fewer design review cycles and faster approval.

Adoption has been limited—many builders prefer custom designs that maximize their specific site’s potential. But for less experienced developers, standardized plans offer a lower-risk path.

Staffing Investment

Vancouver’s 2026 budget includes additional planning staff specifically for multiplex review. The impact won’t be immediate—new staff require training—but capacity should improve through the year.

The Realistic Timeline Going Forward

Based on current pipeline dynamics, here’s what I expect over the next 12-24 months:

Q1-Q2 2026: The 122 permitted projects continue construction. First completions of Bill 44 multiplexes begin entering the resale market. Market absorption data becomes available.

Q3-Q4 2026: The backlog of approved-but-not-yet-permitted projects clears. Building permit issuance accelerates as combined permit process matures. More builders enter the market, reducing capacity constraints.

2027: Pipeline flows more smoothly. Permit timelines stabilize at 8-12 months for typical projects. Market has data on completed project values. Development economics become more predictable.

This assumes no major policy reversals, continued financing availability, and stable construction costs. Those assumptions could prove wrong.

What Smart Participants Are Doing

The developers and homeowners successfully navigating this market share some common approaches:

Front-Loading Due Diligence

Successful projects invest heavily in pre-application work: detailed site assessment, utility coordination, geotechnical investigation, design development. This investment reduces surprise obstacles during review.

Building Relationships

The builders with the smoothest permit experiences have relationships with city staff, utility providers, and trade contractors. These relationships provide information flow, problem-solving access, and priority attention.

Maintaining Flexibility

Projects with rigid timelines and tight budgets fail when unexpected delays occur. Successful projects build in time and cost contingency—not just 10%, but 20-25% on both dimensions.

Choosing Partners Carefully

The homeowner-developer partnerships that work involve clear agreements, aligned expectations, and professional relationship management. Informal arrangements between friends frequently become disputes.

Frequently Asked Questions

Why is Vancouver’s conversion rate so low?

Multiple factors compound: permit staffing constraints, utility coordination issues, financing challenges, and builder capacity. No single factor dominates—it’s the interaction of all of them.

Will the pipeline problems get worse?

Unlikely. The worst period was 2024-early 2025 when application volume surged and processes weren’t adapted. Adjustments are taking effect. The trend should be toward improvement.

Should I wait for the pipeline to clear before selling my lot?

It depends on your timeline and risk tolerance. If you need to sell within 12 months, current market conditions apply. If you can wait 24+ months, conditions may improve—but waiting has its own costs and risks.

How can I tell if a developer buyer will actually complete the purchase?

Ask about their track record (previous multiplex completions), financing capacity (have they confirmed lending?), and timeline (are they ready to apply for permits immediately?). Strong buyers have clear answers to these questions.

Are smaller-scale projects (3-4 units) moving faster?

Somewhat. Smaller projects face similar permit processes but may have simpler design review and lower financing thresholds. They’re not immune to bottlenecks but may navigate them faster.

The Bottom Line

The 517-to-122 conversion rate reflects real constraints in Vancouver’s multiplex market—not bureaucratic obstruction or policy failure, but the practical challenges of scaling a new housing type quickly.

For homeowners, the pipeline bottleneck means longer timelines, more complexity, and the importance of working with experienced partners. Projects are completing; housing is getting built. But the path from application to completion remains challenging.

Understanding where projects get stuck—and what successful projects do differently—helps you make better decisions about your own property and timeline.

The multiplex market will mature. The pipeline will flow more smoothly. But for the next 12-24 months, navigating the bottleneck is part of the game.

Getting Clear on Your Options

Whether you’re selling to a developer or considering development yourself, understanding the permit pipeline affects your decision. The timeline for your project depends on factors specific to your lot, your partners, and your financing capacity.

I help Vancouver homeowners understand where their projects fit in this landscape—what obstacles they’ll face, how long things realistically take, and what alternatives exist.

Let’s talk about your specific situation and what path makes sense given current market realities.

Contact Greyden Douglas directly at (604) 218-2289 or book a call to discuss your Vancouver real estate goals.