Across British Columbia (B.C.), developers of new
housing navigate taxes, fees, and the policies that
drive them, generated by all levels of government.
These taxes and fees are levied to fund services
and amenities that support complete communities.
However, these same taxes and fees make it more
costly to build the housing that communities need,
and can ultimately restrict the amount of new housing
that is built. We are already failing to build enough
new housing in B.C. and homes remain unaffordable
for many British Columbians. In a June 2022 report,
CMHC calculated that 570,000 new homes would
need to be built in the province to restore affordability.1
There are high barriers to new development and one
of these obstacles is the layers of government taxes
and fees charged on housing. This is an impact seen
across jurisdictions and housing types, from a new
condo development in Kelowna to a purpose-built
rental building in Vancouver.
In this report, UDI examines the taxes and fees
associated with building new housing in British
Columbia. UDI has engaged experienced multi-
family developers and tax experts to analyse three
hypothetical condo project budgets from Vancouver,
Kelowna and Saanich, and a purpose-built rental
project from Vancouver. The tables for each of these
examples are included in the appendix. Each analysis
uses current cost estimates that would be calculated
by builders in their budgeting process.
Introduction
Introduction
Taxing Growth