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Vancouver charges some of the highest development costs of any major city: Research

According to the CMHC report, the amount and number of charges can have a significant impact on the cost and timeline of providing a new home.

The City of Vancouver has the highest development fees for condos and among the highest number of separate fees, which has a significant influence on the cost and timeline to deliver units, according to a new study by CMHC.
Vancouver City has the highest condominium development costs, according to CMHC According to a new study, the cost of providing a unit and the maximum number of individual charges that have a significant impact on the timeline. Photo: DARRYL DYC ​​K/Canadian press

Vancouver City is the cost of developing a condominium Is one of the highest, and according to a new study by CMHC, it has the highest number of individual charges that have a significant impact on the cost of providing a unit and the timeline.

According to the latest agency report published on the website on Tuesday, the total price for low and high condominium development in the city is mainly related to density. It reached $ 140 per square foot. Local amenity fees, which account for about 20% of construction costs.

However, a comparison of Vancouver, Toronto and Montreal by Canada Mortgage and Housing Corp. shows that Toronto charges a higher price than Vancouver for the development of townhouses and detached houses. On average, analyst Eric Bond said he would offer some lessons.

"In some cases, government bills, or bills, appear to be contrary to other local government objectives, such as densification," said CMHC's Vancouver office economist and senior. Specialist Bond said.

Bond aims to compile a set of data to compare municipal rates and development costs across a subset of Canada's largest cities and municipalities. He said it was to provoke a debate about "best practices." To collect fees in a way that helps provide more affordable housing. "

"We know that the number and amount of government fees vary significantly from city to town," Bond said, making fees "a key factor in the final price paid by homebuyers." Become.

On average, Vancouver was priced at $ 70 per square foot, while in Toronto it was $ 86 per square foot. Both cities cast a shadow over Montreal, averaging only $ 24 per square foot.

CMHC is an independent federal agency, and Bond said in this report that housing costs in Canada soared. A previous report in June surveyed the overall housing supply and estimated that 3.5 million new units would need to be built by 2030 to solve supply and affordability issues.

And in this report, Bond developed a number of fees that CMHC needs to negotiate, such as various fees, especially Vancouver community amenity fees related to density. Adds uncertainty to the unit and increases the time it takes to deliver the unit.

"Time and uncertainty also add to the cost of a new home," Bond said. "And in many ways, (it) can actually be more important than the amount of the price itself."

According to the report, Vancouver has an average of 9.3 different charges for the development process. It costs 8.7 in Toronto and 6.2 in Montreal.

Vancouver-based urban economist Tom Davidov was skeptical that reducing Vancouver prices, especially density-related amenity prices, would lead to lower prices, but with streamlining the process. I agreed that the increased transparency would be a greater benefit.

"... It's not true that if the city charges $ 100 per unit for sewerage, or something like that, the price of a new home will go up by $ 100." Said Davidoff. Director of Urban Economy and Real Estate Center at Sauder School of Business at B.C. University.

"In my impression, the bigger factors are the political uncertainty about rezoning and the city's reliance on rezoning."

"The job of the (city) council is to remap where and what kind of (housing) products are allowed, but once you do that, you have a hearing. You don't have to drag it out and add uncertainty. I don't know what the outcome of the hearing will be, "Davidov said.

Davidov was cautious about commenting too broadly on Vancouver's housing policy. His wife, Darcy Anderson, is running for the council under the Forward Together banner of the incumbent Mayor of Kennedy Stewart. However, he said the existing council deserves some praise for approving a plan to rezone the city's Broadway Corridor, a step in that direction.

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