Is it ever worth it to buy land and build townhouses?

[Trevor Harder]

I am currently living in a small community of ~2500 on the Northern tip of Vancouver Island.

I have just moved back home from Vancouver and trying to find a place to rent or buy is proving to be very difficult . I am part of a few different real estate facebook groups in the area and  have found that there is absolutely nowhere to rent. As soon as a rental gets posted there are tonnes of people commenting that they are interested. There is a 0% vacancy rate and any houses that do go up on the market get sold right away. The ones that don't sell are either way to big, overpriced, or dumps.

This small housing crisis is about to get worse as there are plans to open up an new mine close to town that will employ 400 more people, there are also talks about a new wood pellet factory that may be opening up as well ( however this is less concrete).

There is only one lot in town that is zoned for low rise apartments/ townhouses for 190k it is 1.3 ac (470x120ft). The lot also has a ocean/mountain view. Is it worth it to buy the lot and develop it?

Ive seen single bedroom suites renting from $600-$800 and 3 bedroom houses renting for $1500. 

I see a tremendous opportunity here right now and I don't want to miss it. But I really don't want to end up in financial trouble. But I get it, no risk, no reward.

Thanks for taking the time to read this!