FOR IMMEDIATE RELEASE
October 8, 2024
Rising Development Costs Threaten Housing Delivery in Metro Vancouver: Urgent Call for Action
Vancouver, BC – The Homebuilders Association of Vancouver (HAVAN) has released a critical report titled Development Finance: New Legislation, New Charges, and the Cost of Delivery Crisis, which highlights the escalating costs of building homes in Metro Vancouver and the significant impacts of Bill 46: Development Financing. With over 73,000 known, approved homes across the region that remain unbuilt—and likely more—the report underscores the urgent need for all stakeholders to collaborate and overcome the growing financial challenges hindering housing delivery in our region.
Bill 46, passed in 2023, introduced new development charges that have added to the already considerable financial challenge of building homes. Combined with rising construction costs and broader economic uncertainties, the implementation of Amenity Cost Charges (ACCs) and new Development Cost Charges (DCCs) for essential services like fire, police, and solid waste facilities has led to steep fee increases. While these changes aim to provide transparency, they have also made housing delivery more costly and unpredictable, as municipalities rely on new development to cover infrastructure costs. In municipalities such as Burnaby and the District of North Vancouver, these new charges account for 5-10% of the total cost of DCCs.
Acting CEO Wendy McNeil addressed the critical situation:
“We know from our builder and developer members that many approved homes across Metro Vancouver are on hold because the numbers simply don’t pencil out due to current economic uncertainties and razer-thin margins. In Coquitlam alone, 15,000 homes are shelved; Vancouver has 14,000 homes, and Surrey has 44,000 stalled. At a time when we desperately need housing, this is unacceptable. All stakeholders—governments, developers, and communities—must come together to find workable solutions to get those shovels in the ground.
McNeil continued “We applaud the developers who have raised these concerns with Metro Vancouver Regional District’s Board of Directors providing recommendations to defer the DCC implementation for two years to better protect in-stream projects, and to move the collection of DCCs from issuance of the building permit stage to occupancy stage. The latter recommendation has been done successfully in other Canadian regions providing examples of what can be done when there is in-depth industry consultation and collaboration. We understand improving infrastructure is necessary but relying on the current ‘growth pays for growth’ model is not sustainable, and ultimately, it is the homebuyer who bears the cost.”
The report presents a detailed analysis of the financial impact of Bill 46, including case studies from municipalities such as Burnaby, Pitt Meadows, and the District of North Vancouver, where development fees have already risen sharply. In some regions, ACC fees for single-family homes have increased by as much as 80%, compared to the previous Community Amenity Charges, the ACCs replace.
As the housing crisis deepens, HAVAN urges policymakers, industry leaders, and communities to work together to address these cost barriers and ensure that housing is delivered to meet the needs of today and future generations.
Media Contact:
Dawn Sondergaard, Senior Director, Marketing Communications
dawn@havan.ca
778-373-9783
