2025 Market Alert: Why New Building Rules Will Cost You More
Executive Summary
Key Takeaways
New Rules, Higher Prices: Changes to the BC Building Code (coming March 2025) and city fees will significantly raise the cost to build new homes.
Fees Tripling: Fees developers pay to the city for things like water and sewers on the North Shore are set to jump by nearly 300% by 2027.
Supply Crunch: Higher costs mean fewer projects will get built, likely making existing homes even more valuable.
1. The "Adaptability" Rules: Better Homes, Higher Costs
Starting March 10, 2025, new rules kick in requiring developers to build homes that are easier to modify for seniors or people with mobility needs. While this is great for society, it comes with a price tag.
More Expensive Materials: Developers now have to reinforce walls (for future grab bars) and change plumbing setups. This requires specialized labor and more materials.
Bigger, Not Better: To fit wider doors and larger bathrooms, apartments need to be physically larger. This means developers can build fewer units on the same piece of land. When you have fewer units to sell, the price of each one has to go up to cover the cost of the land.
2. The Hidden Tax: City Fees Are Skyrocketing
You might not see them on the price tag, but "Development Cost Charges" (DCCs) are fees developers pay to the city to fund infrastructure. These are about to get much more expensive on the North Shore.
The Breakdown (Cost Per Apartment):
Water Fees: Jumping from ~$4,260 to ~$12,220
Sewer Fees: Jumping from ~$2,030 to ~$7,110
New Park Fee: A brand new charge of $1,199
The Bottom Line: These fees don't just disappear. Developers treat them like any other construction cost—they get passed directly to you, the buyer, in the final purchase price.
3. What This Means for Buyers
Fewer Options for Sale
When costs go up this fast, some building projects stop making financial sense. Developers might hit "pause" or cancel projects entirely. This leads to a shortage of new homes, which typically drives prices up for everyone.
The "Budget" Home is Disappearing
Luxury builders can often absorb these extra costs, but builders trying to create affordable entry-level homes cannot. We expect to see fewer "budget-friendly" presales coming to market, forcing more buyers to fight over older, existing condos.
4. Is There a Silver Lining?
Future Value: Homes built under these new rules will be "future-proofed." They will likely be easier to resell later because they appeal to a wider range of people (like retirees).
Better Neighborhoods: The money from those hiked fees goes toward better water systems, sewers, and parks. Properties near good infrastructure tend to hold their value better over time.
Our Advice
If you are thinking about buying a presale home, timing is everything.
Right now, there is inventory on the market that was approved before these new costs kicked in. Buying now allows you to lock in a price based on today's lower construction costs, rather than paying the inflated prices coming in 2025 and 2027.
About Matt Council
Matt Council is a top-performing North Vancouver Realtor and West Van specialist with a background in finance. He moves beyond the sales hype to offer clients a data-driven, pressure-free approach to buying and selling real estate on the North Shore. Whether you are evaluating a presale in Lower Lonsdale or a detached home in Lynn Valley, Matt helps you understand the numbers behind the move.
Thinking of making a move? Let’s run the numbers.