Aerial view of Vancouver single-family neighbourhood with mix of housing types including multiplexes and laneway homes
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Investment Strategy
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Vancouver R1-1 Zoning Explained: What You Can Actually Build in 2026

Greyden Douglas
Founder, Rain City Properties

Summary: Vancouver's R1-1 (Residential Inclusive) zoning replaced the old RS-1 through RS-7 zones and allows multiplexes of 3-8 units, duplexes with suites, and laneway homes on most single-family lots. Base FSR is 0.70 for market multiplex and 1.00 for secured rental. Mandated by provincial Bill 44 with compliance required by June 30, 2026 under Bill 25.

Vancouver's R1-1 zoning replaced the old RS zones and allows multiplexes, duplexes, laneway homes, and more on most single-family lots. Here's a plain-language guide to what you can build, the FSR limits, and what the economics look like.

If you own a single-family home in Vancouver, the zoning on your lot has almost certainly changed in the past two years. And most homeowners I talk to still don’t fully understand what that change means for them.

The short version: Vancouver replaced its old RS-1 through RS-7 single-family zones with a new designation called R1-1 (Residential Inclusive). Under R1-1, your lot can now support a multiplex, a duplex with secondary suites, a laneway home, or — if you prefer — a regular single-family house. It’s the most significant zoning change in Vancouver’s history, and it happened with surprisingly little fanfare.

I’ve spent the last two years helping homeowners figure out what R1-1 actually means for their specific properties. This is my attempt to explain it in plain language, without the planning jargon that makes most zoning documents unreadable.

Why This Happened: Bill 44 and the Provincial Push

R1-1 didn’t come from Vancouver City Council on its own. It came from Victoria.

In late 2023, the provincial government passed Bill 44 (Housing Statutes Amendment Act), which mandated that municipalities allow small-scale multi-unit housing on single-family lots. The specific requirements, according to the BC Government’s Bill 44 summary:

  • Lots up to 280 m²: Minimum 3 units permitted
  • Lots over 280 m²: Minimum 4 units permitted
  • Lots within 400m of frequent transit: Minimum 6 units permitted

Then in 2025, the province passed Bill 25, which set a hard compliance deadline: municipalities must have their bylaws updated by June 30, 2026. Vancouver moved faster than most and adopted its R1-1 framework in 2024, but many surrounding municipalities are still working through their implementations.

The policy intent is straightforward — BC needs more housing, and the single-family zones that covered the majority of residential land in most cities were a structural barrier to building it. Whether you agree with the approach or not, R1-1 is now law.

What R1-1 Actually Allows

Here’s what you can build on an R1-1 lot, organized by type:

Single-Family with Suites

  • Main house + secondary suite + laneway home
  • This is the “keep what you have and add to it” option
  • Laneway homes are permitted on lots with lane access and at least 33 feet of width

Duplex with Suites

  • Two principal dwelling units + up to two secondary suites
  • Total of 3-4 units on one lot
  • Can include a laneway home in addition

Multiplex (3-6 Units)

  • This is the big change. You can build 3-6 separate dwelling units on a standard single-family lot
  • No rezoning required — it’s outright permitted
  • Units can be a mix of configurations (studios, one-beds, two-beds, three-beds)

Multiplex (Up to 8 Units)

  • On larger lots near frequent transit (within 400m of a bus route with 15-minute service or SkyTrain)
  • Requires slightly different form and massing

The City of Vancouver’s R1-1 zoning page has the complete bylaw language. Fair warning: it’s dense.

The FSR Rules (This Is Where It Gets Technical)

FSR — Floor Space Ratio — determines how much you can build relative to your lot size. It’s the single most important number in any development equation.

Under R1-1, the FSR depends on what you’re building and whether you’re offering any affordability component:

Market Housing (No Affordability Requirements)

Building TypeBase FSR
Single-family + suite0.70
Duplex0.70
Multiplex (3-6 units)0.70

Secured Rental or Below-Market Homeownership

Building TypeFSR
Multiplex with secured rental covenant1.00
Multiplex with below-market homeownership (BC Housing partnership)1.00

That FSR bump from 0.70 to 1.00 is significant. On a standard 33x120 lot (3,960 sq ft), the difference is:

  • 0.70 FSR: 2,772 sq ft of buildable floor area
  • 1.00 FSR: 3,960 sq ft of buildable floor area

That extra 1,188 sq ft is roughly enough for one additional unit. The province designed this as an incentive to build rental housing rather than strata condos — and based on what I’m seeing in permit applications, it’s working. Most serious multiplex projects are targeting the 1.00 FSR secured rental stream.

Height and Form

R1-1 permits buildings up to 11 metres (approximately 36 feet) for multiplexes, which typically translates to 2.5 to 3 storeys. The form guidelines push for designs that are sympathetic to existing neighbourhood character — pitched roofs, articulated facades, and setbacks that maintain some relationship to neighbouring homes.

I’ll be honest: the design outcomes have been mixed so far. Some of the early multiplexes look great. Others look like someone jammed four condo units into a house-shaped box. The City’s design guidelines for multiplex housing exist, but they’re guidelines, not hard rules, and interpretation varies by reviewer.

What This Means for Your Property’s Value

This is the question I get most often, and the honest answer is: it depends.

R1-1 zoning effectively creates two layers of value on every single-family lot:

  1. Use value: What the property is worth as a home
  2. Development value: What the property is worth based on what could be built on it

For lots in desirable neighbourhoods — Kitsilano, Mount Pleasant, Dunbar, Kerrisdale — the development value is increasingly driving pricing. Buyers and investors are looking at these lots not as houses but as future multiplex sites.

I’ve tracked this shift through BC Assessment data and MLS sales in 2025-2026. Properties on larger lots (50+ feet wide, 120+ feet deep) near transit are trading at premiums of 10-20% above what the house alone would justify. Smaller lots without lane access have seen less of a bump because the development potential is more constrained.

That said, this is not a windfall for everyone. If your lot is 33 feet wide on a quiet street far from transit, the realistic development option is a modest multiplex at 0.70 FSR. The numbers may or may not pencil out depending on construction costs, which are elevated right now due to tariffs and labour shortages. I wrote about the broader economics of multiplex investment here.

The Economics: Does Building a Multiplex Actually Make Sense?

Let me walk through a realistic scenario on a typical East Vancouver lot.

Assumptions:

  • 33x122 lot (4,026 sq ft), purchased with existing house for $1.8M
  • Building a 4-unit multiplex at 0.70 FSR = ~2,818 sq ft
  • Construction cost: $450-$550/sq ft (current market, per conversations with local builders)
  • Total construction budget: ~$1.3M-$1.5M including demolition, soft costs, and servicing

Revenue scenarios:

If you sell the units as strata:

  • Four units averaging 700 sq ft at $850-$1,000/sq ft (east side pricing) = $2.4M-$2.8M gross
  • After land cost ($1.8M), construction ($1.4M), and selling costs (~$150K): you’re looking at breakeven to a modest loss at the low end, or a slim profit at the high end

If you hold as rental:

  • Four units renting at $2,200-$2,600/month = $105,600-$124,800/year gross
  • Operating costs (~30% of gross): $31,700-$37,400
  • Net operating income: ~$74,000-$87,000/year
  • On a $3.2M total investment (land + construction): cap rate of roughly 2.3-2.7%

Those cap rates look thin. And they are. The strata scenario is better if you can execute well, but it’s not a sure thing. The economics improve substantially on the 1.00 FSR secured rental stream — the extra buildable area adds one more unit without proportional cost increases, and BC Housing programs can offset financing costs.

This is why I tell clients that R1-1 is a long game. The zoning creates optionality on your lot. You don’t have to build a multiplex today. But five years from now, when construction costs normalize and rental rates continue climbing, that optionality becomes more valuable. The zoning isn’t going away.

Common Misconceptions I Keep Hearing

“The City will force me to build a multiplex.” No. R1-1 is permissive, not prescriptive. You can keep your single-family home exactly as it is. Nobody is being forced to do anything.

“My property is now worth way more because of R1-1.” Maybe. The value increase depends on lot size, location, lane access, proximity to transit, and current market conditions. Not every lot saw a meaningful bump.

“I can build 8 units on any lot.” Only lots within 400m of frequent transit qualify for more than 6 units. And practically speaking, fitting 8 units at 0.70 FSR on a standard lot means very small units. The sweet spot for most lots is 4-6 units.

“Multiplexes will destroy neighbourhood character.” This is the most emotionally charged one. I think it’s too early to judge. The first wave of R1-1 multiplexes is just starting to complete, and the design quality varies. Some neighbourhoods will handle densification gracefully. Others will struggle. The multiplex design debate is worth reading if this concerns you.

Key Takeaways

  • R1-1 replaced Vancouver’s RS-1 through RS-7 zones and now covers most former single-family lots
  • You can build multiplexes (3-8 units), duplexes, laneway homes, or single-family homes — no rezoning required
  • FSR is 0.70 for market housing, 1.00 for secured rental or below-market homeownership
  • Bill 44 mandated this provincially; Bill 25 requires full compliance by June 30, 2026
  • Development economics are tight at current construction costs — the math works best at 1.00 FSR with secured rental
  • R1-1 creates long-term optionality on your property even if you don’t build today
  • Lot size, width, lane access, and transit proximity all affect what’s practical to build

Frequently Asked Questions

Does R1-1 apply to my property?

If your property was previously zoned RS-1, RS-1A, RS-1B, RS-2, RS-3, RS-3A, RS-5, RS-6, RS-7, or RT (residential two-family), it has almost certainly been re-designated R1-1 or a similar inclusive zone. You can confirm by checking the City of Vancouver zoning map. A small number of properties in heritage conservation areas or special districts may have different designations.

Do I need to hire an architect, or can I use a pre-approved plan?

You’ll need an architect or building designer for any multiplex. The City has been working on a pre-approved plans program to streamline the process, but as of early 2026 the program is limited. For laneway homes, some builders offer semi-standardized designs that can reduce the design timeline and cost.

Can I convert my existing house into a multiplex instead of demolishing it?

In some cases, yes. If your existing home has the structural bones to support internal subdivision into multiple units, conversion can be cheaper than demolition and new construction. However, meeting current Building Code requirements — fire separation, sound insulation, separate mechanical systems, energy efficiency — in an older home is often more expensive per square foot than building new. I’d recommend getting a structural assessment before committing either way. Read more about the full process in my homeowner’s guide to building a multiplex.

Sources

Next Steps: Work with Rain City Properties

Figuring out what you can build on your specific lot is the first step. I help Vancouver homeowners evaluate their R1-1 options — whether that’s a laneway home, a multiplex, or simply understanding how the new zoning affects your property’s value.

If you’re thinking about selling to a developer, I can help you understand what your lot is worth under R1-1 and how to position it properly. If you’re thinking about building yourself, I’ll connect you with the architects and builders who are doing the best work in this space.

I’m Greyden Douglas at Rain City Properties. Call me at (604) 218-2289 — I’m happy to walk through the specifics of your lot and what makes sense for your situation.

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