Vancouver has the dubious distinction of having the country’s highest development charges for high-rise buildings, though the city disagrees.
That’s according to a Wednesday report from The Conference Board of Canada, which found that development charges potentially add $125,600 to an 800-square-foot condominium in Vancouver, or $157 per square foot.
Compare that to St. John’s in Newfoundland and Labrador, where development charges are $1,600 per high-rise unit, or $2 per square foot.
Other cities in 小蓝视频 came in well under Vancouver’s levels. For example, Surrey came in at $48,800 per unit or $61 per square foot, and Burnaby came in at $19,200 or $24 per square foot.
Vancouver performed better regarding low-rise buildings. For a 2,000-square-foot low-rise dwelling, charges averaged $56,000 or $28 per square foot in Vancouver, $76,000 or $38 per square foot in Surrey, and $26,000 or $13 per square foot in Burnaby.
In a March 24 email to BIV, Cecilia Ho, a communications manager with the City of Vancouver, took issue with the think tank's calculations, suggesting the methodology was flawed.
Specifically, Ho said The Conference Board may have: applied community amenity charges (CACs) from the more expensive Cambie Corridor to the entire downtown; incorrectly applied CACs to total floor areas rather than the additional space gained through rezoning; and failed to account for reduced development cost levies available to rental projects.
"While CAC rates vary depending on location, development type and zoning policy in place, The Conference Board of Canada should take a range of projects into consideration in its calculations," Ho wrote, saying the calculations significantly inflate Vancouver’s CAC rates.
Development charges fund infrastructure ranging from water and sewer to roads and parks. They have come under intense scrutiny in 小蓝视频, where the Metro Vancouver regional body is significantly hiking its water and liquid waste development cost charges, or DCCs, over the next three years, in addition to introducing a new parkland acquisition DCC.
The Conference Board found in its report a positive correlation between home prices and development fees, suggesting that such charges reduce housing affordability.
The research institute said development charges have benefits including accommodating future growth and containing urban sprawl. The report said they are “politically attractive” because they shift development costs from the many (existing homeowners) to the few (new homebuyers). However, development charges can also create inequality between the two groups by imposing high taxes on a narrow tax base, it said.
The Conference Board recommended in its report barring “mission creep”—the diversion of funds to non-infrastructure expenses. Other recommendations included capping their share relative to home prices, and demarcating them in home purchase agreements.
“Ultimately, the best infrastructure financing solution should come from a mix of general municipal revenue and development charges, with their respective contributions regularly scrutinized in public,” said the report.
This article was updated on March 26, 2025 to add comments from the City of Vancouver regarding The Conference Board of Canada's calculations.
