Government regulations and development charges have driven up house prices in Metro Vancouver to the tune of $644,000 per new house, according to a new report from the C.D. Howe Institute.
The report shows that in Vancouver, after factoring in a profit for the developer, close to half of the price of a new detached home is due to government fees and regulations.
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The report, released Tuesday, found the cost of barriers to housing supply in Canadian municipalities — such as zoning regulations, development charges and limits on housing development — are highest in B.C., with the Vancouver census metropolitan area leading the pack, followed by Abbotsford and Victoria.
“Vancouver is, by far, the most restrictive region in Canada,” said Benjamin Dachis, associate director of research at C.D. Howe, who co-authored the report with Vincent Thivierge. “It’s so restrictive it’s on par with some of the worst performers in the world like in New York and some cities in the U.K. and Australia.”