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The Greatest Challenges Facing Vancouver's Housing Sector with Cressey’s Hani Lammam
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In episode 2, Mark Goodman sits down with Hani Lammam, Executive VP of Cressey Development Group, to discuss his journey from a high school laborer to leading one of Vancouver's top development firms. With over 25 years in the real estate industry, Hani shares his insights into the challenges and opportunities in today’s market.
“The institutions and the big corporations, they're the stabilizing factor in the marketplace. They are the ones who are disciplined, who are very careful about how they underwrite these investments. And I think where it all kind of falls apart is because there is not an appreciation for the risk that investors take. It’s a big risk. This is a lot of money and the return is minimal. We're literally talking about three to four percent yields on investment. That's not very good.
So these are not very profitable investments. This is an investment into the future. And we should embrace these investors because they are literally the ones that are supporting the housing stock, as opposed to demonizing them and somehow suggesting that the financialization of real estate is bad.
When people say that, I kind of recognize how naïve they are about how the world works. You almost can't respond to it because they’re just oblivious.”
– Hani Lammam, Cressey Development
Key highlights:
Housing Affordability Crisis: Supply shortages, increased taxes, complex regulatory demands and ineffective policies are driving up rents and making housing unaffordable
Misconception of Foreign Buyers and Corporations: They are not the primary issue; the lack of supply is the main cause of the housing problem.
Inefficiency of Rental Protection Fund: While it preserves social housing, it removes affordable units from the market and doesn't create new stock.
TOA Initiative Flaws: The Transit Oriented Area initiative sets density targets but leaves details to municipalities, leading to conflicting policies and lack of progress.
Need for Coordination: Developers and municipalities must collaborate to create feasible housing solutions, with advocates or champions helping navigate the approval process.
Cautious Optimism for 2025: There is hope for political change and structural fixes that could improve the housing situation and create development opportunities.
Despite market challenges, Hani’s team stays nimble, deeply involved in project details, and focused on sustainable growth. Tune in for an in-depth look at Vancouver’s real estate future!
👂 Listen to the full conversation. You won’t want to miss this!
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