This is Part 2 in a multi-part series on the impact of new housing rules on Coquitlam neighbourhoods.
Coquitlam’s new housing rules for neighbourhoods near SkyTrain stations contain a powerful economic lever: a massive "bonus" for developers who skip condos in favour of rentals.
City staff explicitly state in their report to City Council that they are using Residential Rental Tenure Zoning to encourage rental construction.
“This approach encourages 100% rental,” says the report. “....[A] developer has the option of pursuing either strata or rental, with rental developments proceeding at higher densities than strata developments.”
The key term is density.
In planning terms, this is the amount of floor space a developer is permitted to build, known in the industry as “Floor Area Ratio” (FAR) —a calculation that determines the total square footage of a building relative to the size of the lot.
Under the new rules, if a developer agrees to build 100% rental units, they will be allowed to construct 66% more floor space if they are in a Tier 2 area (201 to 400m from a station). If they are in a Tier 3 zone (between 401 and 800m), they can build 25% more floor space.
As an additional incentive, the City has reduced the requirement for common amenity areas—such as gyms or lounge spaces—by 20% for rental projects, further lowering construction costs.
To illustrate the impact: If eight neighbours join together to sell their collective property of 50,000 square feet, a developer could build approximately 80–100 more units if the units were rental only and in a Tier 2 zone, or 30–40 more units in a Tier 3 zone.
The City believes there is a need for more rental units, specifically units that are purposefully built to be rented.
“Our housing needs report in 2022 found that the vast majority of renters are renting in the secondary market,” said City Planner Kristin Patten in a presentation to Council in February 2026.
“They're renting secondary suites or they're renting a house or a condo from an owner, and there's a much higher risk of displacement from that rental stock.”
By prioritizing purpose-built rentals, the City aims to provide long-term stability for tenants who currently rely on individual condo owners or "basement suite" landlords who can reclaim their units for personal use at any time.
Speaking about the new changes, Coquitlam’s City Manager, Raul Allueva, indicated they were trying to mirror the outcomes under the old rules and, as such, expected no discernible difference.
“About a third of the developers took advantage of the rental [incentives] and a bunch of them didn't. So that is not changing,” he said. “We're just trying to really bridge, have almost the same system in play so that when the market comes back...decisions will be made by developers.”
However, there was some scepticism on Council. Councillor Robert Mazzarolo expressed concern that the rules tilt too far in favour of rental construction. “If we tilt it too far one direction, do we only get rental?” he asked. “The majority of people out there strive for homeownership”.
Councillor Mazzarolo foresaw potential issues with the emphasis on rental construction. “If we get into a situation where we're predominantly getting rental—we need the rental—but that's also going to become an issue.”
Coquitlam continues to have some of the highest rental costs in the country. According to the March 2026 rent report by Rentals.ca, the average cost to rent in Coquitlam was $2,478 per month, 20% higher than the national average.
Meanwhile, the provincial NDP government has ordered Coquitlam to build 6,481 new homes by August 2030, and has provided “guidance” that more than 4,500 units should be rental units.
The result is that residents who own single-family homes in these transit corridors face a difficult choice. Under the new rules, if a developer assembles a lot that is only partially inside a high-density zone, the higher density now automatically applies to the entire parcel. This "standing rule" simplifies land assembly for builders, but it may increase the pressure on homeowners who wish to stay while their immediate neighbours choose to sell.
With as few as two properties required to initiate a major development, many fear an "equity trap" where they must either band together with neighbours to sell at a premium or risk being the last house standing, surrounded by a 12-storey rental complex. What will the quality of life be in a part of the city that will experience such radical change in the coming years?