Revenue Generation: The Fourth Pillar
The Fourth Pillar is Revenue Generation—a critical component that makes large-scale affordable housing solutions viable without relying on long-term government financing commitments.
Even with zero-cost land, below-market mortgage rates, and expedited delivery and permitting systems, achieving affordability at scale remains a significant challenge. Revenue generation bridges this gap by leveraging creative, community-driven approaches.
Community Acceptance of Mixed-Use Development
A survey by the Haskayne School of Business at the University of Calgary found broad market acceptance for mixed-use, multi-family, mixed-income developments in Metro Vancouver. Two-thirds of respondents expressed comfort with introducing new types of developments into their neighborhoods. This openness creates opportunities for innovative revenue-generating models that support affordability.
The Skwacháys Lodge: A Model of Success
One of the best examples of revenue generation in action is the Skwacháys Lodge & Gallery. This Indigenous social enterprise combines:
- 18 hotel rooms and
- A street-level Fair Trade Indigenous Gallery
The revenue generated by these operations subsidizes 24 artist live/work studios, demonstrating how mixed-use spaces can provide financial sustainability and community benefits.
Revenue-Generating Opportunities
Each development site should be viewed through a community lens and carefully evaluated to identify the best revenue generation strategies. Potential options include:
- Market and near-market rentals
- Workplace and student housing
- Short-term and executive suite rentals
Adding Commercial and Retail Spaces
The inclusion of Commercial Retail Units (CRUs) and office spaces can further enhance revenue streams. Examples include:
- Grocery stores
- Health clinics
- Pharmacies
- Retail shops
- Community office spaces
These components not only generate revenue but also enhance the livability and convenience of the surrounding community. The funds generated can then be reinvested into creating more affordable housing units for non-profit housing providers.