[whatnext]

Originally Posted by csbvan

Unfortunately, it isn't so simple. You cannot build a rental building with rates anywhere near what you see in an older building. Costs of buying a building, demo-ing it, and then building a new structure ensure that the cost for unit will be high.

Therefore, we too often see a net loss of lower-end units replaced with higher end rental units. It doesn't matter how many are built, those lower end prices can never be charged in the new building or it won't be able to break even given the costs of development.

The key is to build more rental units, but to do so without wiping out, forever, low-end rental units. We need more rental units and we need to maintain existing, cheaper rental units.

Indeed.

I'm surprised demolition of the older building was allowed by mayor and council, isn't there a policy on that? Perhaps it had been stratified at some point?