Downzoning
Understand downzoning in Canadian real estate — what it is, why it’s implemented, and its impact on property development rights.
July 27, 2025
What is Downzoning?
Downzoning is the process of changing zoning laws to reduce the allowable density, height, or land use intensity on a property or in a designated area.
Why Downzoning Matters in Real Estate
In Canadian real estate, downzoning can affect property value and development potential, often implemented to preserve neighbourhood character or protect infrastructure capacity.
Impacts of downzoning:
- Lower permitted floor area or building heights
- Restrictions on multifamily or commercial uses
- Potential decline in land value or investment feasibility
Understanding downzoning is essential for property owners and developers to assess long-term land use rights.
Example of Downzoning in Action
The city passed a bylaw downzoning the area to single-family residential to maintain its low-density character.
Key Takeaways
- Reduces permitted density or building intensity
- Often intended to protect neighbourhood character
- Can decrease redevelopment potential
- May affect property value
- Requires municipal bylaw changes
An overview of Lougheed Village, looking west, and the new proposed infill towers (yellow). / NSDA Architects, Starlight Investments
An overview of Lougheed Village, looking west, and the new proposed infill towers (yellow). / NSDA Architects, Starlight Investments
The phasing plan for the Lougheed Village infill towers. / NSDA Architects, Starlight Investments
The two towers proposed for 375-475 W 41st Avenue (357 W 41st Avenue) in Vancouver. / Arcadis, Nicola Wealth Real Estate
The tower proposed for 325-343 W 41st Avenue and 5696 Alberta Street in Vancouver. / Arcadis, Nicola Wealth Real Estate
77 Davisville/CORE Architects
