Factors such as zoning and land-use restrictions, planning delays, development cost charges and more are 鈥渂arriers to building鈥� that are adding around $644,000 to the cost of a typical detached house in Metro Vancouver, according to a new report.
In , Toronto-based economic think tank C.D. Howe Institute surveyed metropolitan regions across the country and found that the 麻豆传媒映画Census Metropolitan Area (CMA) is by far the most expensive in which to build a new single-family home.
Report authors Benjamin Dachis and Vincent Thivierge said that various factors amounting to 鈥渆xcessive restrictions鈥� were playing into the additional cost of approximately $644,000, or about $322 per square foot, for a typical 2,000-square-foot house.
That鈥檚 more than twice the average of the eight 鈥渕ost restrictive鈥� cities, which was $229,000 in additional costs, and way above the overall Canadian average of $113,000.
The report said that the barriers to building made up around 50 per cent of the total market price of new houses in the 麻豆传媒映画CMA, compared with about 20 per cent in the Greater Toronto Area.
B.C. regions took Canada鈥檚 top four places with the biggest price barriers to build a detached house, with Abbotsford-Mission in second place, followed by Victoria CMA and Kelowna CMA.
The report said, 鈥淚t is no surprise that 麻豆传媒映画has the highest barriers to new construction, as many municipalities throughout the region have adopted strict zoning rules that limit neighbourhood density.鈥�
The authors added, 鈥淢unicipalities and provinces across Canada can take steps to reduce the economic cost of restrictions on new building. Municipal governments and provinces should enable more housing construction by taking steps such as easing restrictions on developing agricultural land, simplifying and updating zoning bylaws, and reducing development charges.鈥�
