Granville Street: Canada’s Economic Warning Sign

Vancouver, BC - April 9, 2025 - Granville Street in downtown Vancouver tells a troubling tale as empty storefronts multiply, turning this once-vibrant strip into a stark financial barometer that signals Canada’s economic struggles and paints a grim picture of a nation not doing so well. As the most expensive city with the steepest rents in Canada, Vancouver’s woes spotlight a sign of the times, poised to ignite fierce debate and shape an election issue by April 28.

As the pandemic’s ripple effects unfold, stories of transformation emerge—including a pivotal change on Granville Street. In June 2020, the province purchased a 110-room hotel for $55 million, aiming to provide shelter for encampment residents, many grappling with addiction and mental health struggles—a noble intent amid crisis. Yet, local businesses describe the shift as swift and severe. Almost overnight, rising street disorder and open drug use swept through Vancouver’s entertainment district, driving customers away from an area already burdened by some of the world’s highest rents. Once-bustling storefronts soon displayed “For Lease” signs, casting a shadow of distress over this iconic strip.

The pandemic’s lingering effects set the stage. Lockdowns and restrictions gutted foot traffic, leaving businesses limping into the recovery phase. Then came interest rate hikes as the Bank of Canada fought post-pandemic inflation, jacking up borrowing costs. Rent, already a burden, became a noose for retailers and restaurateurs, squeezing margins razor-thin. The 2025 tariff wars, sparked by U.S. policies under a Trump administration, piled on more pain. Economic forecasts flat-lined, with unemployment creeping up as consumer confidence and spending shrivelled.

The hotel’s new residents, lacking adequate support, became the tipping point. Open drug use and chaos clashed with Granville’s nightlife appeal, driving away tourists and locals alike. High rents, pandemic scars, costly debt, tariff pressures, and street-level decay—each a blow on its own—together are in the process of slowly turning Granville Street into a financial ghost town, unless something is done to change it.

A thrift store owner recently spent $300,000 on well-trained security and on replacing broken windows, the most recent smash coming just a few days ago. She says when they called the glass company to come fix it, they were told there would be a delay due the large volume of broken windows on Granville Street. This is not sustainable for businesses already struggling to survive.

Boarded-up windows now line this iconic street, a far cry from its vibrant past. Hospitality traffic has plummeted by about 60%, according to nightclub operators, who say the strip hasn’t looked this bleak in decades. The hotel, transformed into supportive housing, has sparked chaos—water leaks, emergency calls, and violence spill into the neighborhood.

The province defends its purchase, arguing it addressed a housing crisis during the pandemic and saved lives. Yet, local voices demand change now. Operators are pleading for a plan to tackle mental health and drug issues in other parts of Vancouver, not in the heart of an entertainment district. Meanwhile, officials promise short-term aid—a $5 million pilot program to curb disorder—and a shift to house seniors at the site, slowly moving others with complex needs to better-suited locations. Still, with Vancouver set to host the 2026 FIFA World Cup, the sight of a crumbling Granville raises alarm about Canada’s readiness to shine.

Yet, hope flickers amid the gloom: Since taking office in November 2022, Mayor Ken Sim and his administration has pushed forward plans to breathe new life into the Granville Entertainment District, aiming to restore its status as a vibrant, safe, and welcoming hub. In January 2023, Vancouver City Council, under Sim’s leadership, unanimously approved the Granville Street Planning Program, to develop a comprehensive vision for the area.

This plan focuses on boosting daytime and nighttime activity, enhancing public spaces, and supporting economic and cultural revitalization, while addressing challenges like vacant storefronts, safety concerns, and street disorder. With swift, bold moves—tackling rents, supporting businesses, and addressing street disorder—Granville could reclaim its vibrancy, proving resilience can turn a warning into a revival.

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