Metro Vancouver is experiencing an increase in developers interested in constructing off-campus student housing. These residential buildings are not necessarily linked to specific educational institutions. However, the unique nature of these projects often requires developers to request changes to municipal zoning bylaws. This is necessary to permit dormitory-style units that are smaller than current regulations allow, and the outcomes of these requests have been mixed.

One of the largest developers of purpose-built student housing in Canada, Forum Asset Management, has been working for over a year with the City of Burnaby on a rezoning application. The proposal aims to transform a collection of 16 single-family lots into a significant student housing project near Simon Fraser University. The site, located on Rathburn Drive at the base of Burnaby Mountain, is near the SkyTrain Millennium Line.

On October 28, a majority of the Burnaby city council voted against allowing city staff to continue collaborating with Forum on the development plan. Mayor Mike Hurley cited several concerns, including the ecological sensitivity of the area. He noted, "The site is in a very ecologically sensitive area and we have had a lot of success getting salmon to return to that creek. There have been some issues with developments upstream that have killed salmon, so we need to look at these issues."

Additionally, Hurley expressed doubts about the strength of the connection between the proposed housing and Simon Fraser University. He also raised concerns that the project might be too large for the surrounding neighborhood. "We fully support student housing and need it, but need to be careful about the area," he said.

Forum's initial application included plans for four buildings with approximately 1,405 units, of which 950 were designated as student residential units. These units ranged from "micro" units of 215 square feet to three-bedroom units of 904 square feet. A staff report presented to the council indicated that many of the proposed student rental units would not meet the minimum size requirements outlined in the existing zoning bylaw. Currently, the bylaw permits studio units of 322 square feet and three-bedroom units of 861 square feet. The remaining 450 rental units in Forum's proposal would not be restricted to students and would comply with the minimum size requirements for apartment units.

Aly Damji, managing partner at Forum Asset Management, commented on the council's decision, stating, "The unfortunate turn of events underscores the need for specific policy around student housing in municipalities across the Lower Mainland." Despite the setback, he remains optimistic about the future of student housing in the region. "The trend is now gaining momentum in the Lower Mainland as rising rents and limited on-campus options leave students underserved," he added.

In early 2025, Forum became the largest owner of purpose-built student housing in Canada after acquiring Alignvest Student Housing, which managed over 7,150 student dormitory bedrooms across 17 properties, primarily in Eastern Canada. Forum purchased Alignvest for $1.7 billion, and shortly after, Brookfield Asset Management invested $100 million to support the acquisition.

Forum is also pursuing a redevelopment project in the District of North Vancouver, proposing 485 student housing units in a 24-story building near Capilano University.

Jason Mah from Avison Young noted a growing trend of institutional and large private capital targeting the off-campus student housing market in Metro Vancouver. He remarked, "Over the last three to four years, we’ve seen institutional and large private capital increasingly target the off-campus student housing market in Metro Vancouver, mirroring what happened in the U.S. and Europe a decade ago."

Mah explained that student housing often falls into a gray area regarding municipal zoning policies, complicating financing as some lenders have not yet adapted their underwriting for this type of property. He believes that purpose-built student housing will become a more integral part of the Metro rental landscape over the next five years.

Another investment firm, Harrison Street Asset Management, recently announced its investment in a 458-bed student housing project near the SFU campus on Burnaby Mountain. Originally planned as a condominium, the site will now be converted into rental housing for students, with completion expected in 2028. Harrison Street had previously acquired another 283-bed student housing project near SFU, set to be finished in 2026.

In Vancouver, a rezoning application is under consideration for a site on Main Street in Mount Pleasant, which previously housed a Royal Bank of Canada branch and the Goh Ballet Academy. The academy has partnered with developer Westbank to propose a 25-story building with 315 dormitory-style student housing units, each featuring a private bathroom and kitchenette. Some units may be as small as 253 square feet.

Chan Hon Goh, general and artistic director of the Goh Ballet Academy, highlighted the demand for local accommodation among students, stating, "Much of the general demand for market rental housing in Metro Vancouver is spurred by students, and many Goh Ballet students require local accommodation while they study." He added that the current housing market poses challenges for students, forcing them to seek off-campus rentals and increasing pressure on the overall rental market.