Way back in 2022, we published a guide on the costs of building a home in Vancouver. Can you believe it’s been two years? Since then, Canada has seen high inflation rates the high inflation rates of 2023, balanced out by the increasing interest rates of 2024. Now, as we enter the final quarter of the year, the interest rate is equalizing and we’re seeing trends towards stabilized production prices and overall stability of energy costs, all marking the beginning of a return to a more predictable cost landscape.
On the other hand, we’re seeing an increase in population growth, and a marked housing shortage, not just in Vancouver, but all throughout Canada’s major cities. The demand for new infrastructure mirrors the housing crisis of the 1970’s, which was incidentally solved, by doing just that: building new homes. While BC’s government has been tackling the issue through new regulations and zoning laws, the effects of those measures have yet to be fully assessed.
Things can change so quickly though, but if there’s anything the last few years have taught us, it’s to be adaptable. We see changes as an opportunity to be challenged, and to try something different. The host of changes to the zoning laws in BC, for instance, presents a chance to take on new and unique projects.
So, where’s the good news in all this? We’re seeing a trend towards stability in building costs. This is great news if you’re looking to build soon. In 2022, we estimated an average single-family residential home would cost around $400 per square foot. We’re going to revisit this estimate and give you an updated look into what you can expect when building a home in the Greater Vancouver and Lower Mainland in 2024.
As before, four major factors will always be relevant when considering the potential cost of your build:
- Size
- Quality
- Complexity
- Luxury
We’re also going to look at a new factor:
- Zoning
Size
Large multi-level home
The size of a home is one of the major factors to consider when covering the cost of construction. While costs can vary widely, generally, the smaller a home, the higher the cost per square foot. You might think that building on a smaller scale will result in significant cost savings, but this is a common misconception. A smaller home still needs all the same infrastructure to be functional— just in a smaller space. So yes, there may be some savings, but nothing significant.
There are a few areas where you’ll see a direct correlation between square footage and overall cost:
- Paint
- Roofing
- Drywall
- Interior finishes
- Labour
- Flooring
- Electricity wiring
How can you save?
When you know which factors can make your budget skyrocket, you can plan to mitigate them. Concerned with the costs of flooring? Then opt for laminate or vinyl. Really want that specific shade of paint? Make it an accent wall or a trim. As long as you’re flexible, an attentive designer can help you build the home of your dreams, while also staying within your current budget.
Quality
Custom cabinetry with integrated appliances
As with size, the cost of quality is a little more nuanced than you might immediately assume. When it comes to home-building, quality comes into play in two principal areas: materials and labour. On the topic of material, of course, marble costs more than granite, which costs more than laminate. However, these costs can be mitigated through clever design choices. It’s the quality of foundational materials that cannot be skimped on.
Regarding labour, this often represents upwards of half the total costs of a project. The more specialized and experienced the trade, the more expensive their services can be. Electricians, plumbers, and HVAC specialists always carry a hefty price tag. While these costs can be a little mind-boggling to the uninitiated, they’re also required to ensure a high standard of construction that will last you for decades to come.
Nobody wants a poor-quality home, but paying for the best version of everything is obviously prohibitive. A knowledgeable designer can guide you toward the best choices for your budget. Additionally, skilled labour may cost more, but it ensures a high standard of construction and makes the best use of your budget.
How can you save?
If you’re looking for the most cost-effective option, you want to weigh the costs of good quality (prevention of errors and failures) against the cost of poor quality (costs of correcting errors and repairing failures). A team of designers and contractors can help you find that happy medium.
Complexity
Asymmetrical ceiling with custom, arched windows
Let’s get down to it: even the simplest of homes are complex. The sheer amount of skill and effort that goes into designing, engineering, and building that goes into every square foot of your project is astounding. It’s really a matter of just how complicated a project is. Some homes are simply more complex than others. The number of levels, working on an uneven lot and incorporating bespoke features can all affect the complexity of your build.
The complexity comes into play at every step of the process when it comes to home building, but it starts with your lot. Vancouver is known for its beautiful landscapes, and while rolling hills and rivers are magnificent to see, they present a unique challenge when it comes to building. Whether you purchased land on a flat lot, or a steep hillside is going to reflect in the cost across every other step of the build. The more unique challenges your lot presents, the higher your bill is going to be, not only in the planning and design stage but also in the permitting and construction phases.
How can you save?
If you’re looking to reduce complexity, you can do one of two things: build upwards or build to standard. Consider, that the same area, split across 2-storeys will require half as much foundations and roofing. Similarly, if you build with the standard measurements of materials in mind, you can reduce waste and labour costs. These factors can easily be overlooked but can result in a much-needed budget cut if that’s what you’re looking for.
Luxury
Luxury pool, lit up in the evening
Are you satisfied with a simple, but quality design? Or do you want bespoke fixtures? Do you want to stick with a traditional home design, or would you prefer something sleek and modern? Luxury means merging style with comfort and artistry with function. It’s a matter of knowing what you need in a home. A quality build is non-negotiable, no matter your budget, but if you opt for luxury, your costs will increase. When building a true luxury home, the sky is truly the limit, cost wise.
Building a luxury home should be seen as an investment, not only in the value of your property but in your lifestyle. It doesn’t hurt that luxury fixtures often require less maintenance, resulting in long-term efficiency.
How can you save?
Anybody can incorporate selective luxury in their custom home. Even on a budget, you can still invest a little extra to get the features that matter the most to you. Elements like accent walls, elegant light fixtures, and smart home integrations can all add a touch of luxury to your home. Changes like these create bold focal points.
Zoning
Laneway
Zoning regulations play a crucial role in not only the cost of permitting but also impact the scope of your build. The City of Vancouver is known for having strict zoning laws, requiring complex permit applications and lengthy approval processes. Zoning restricting density and recent sustainability guidelines make for a minefield of challenges when it comes to building a new home.
Over the last year, there have been lots of changes in zoning laws throughout the lower mainland. There have been relaxations on land previously zoned for single-family use. Neighbouring cities like Coquitlam and Surrey have updated zoning laws to allow multi-unit housing on previously single-home lots near transit hubs. A new bylaw now allows laneways and secondary suites in Burnaby. All these changes impact your options when it comes to building a custom home.
How You Can Save
These new zoning changes have expanded options for home-builders. If you’re still looking for a lot, you can research zoning variances and look for flexibility in design or land use. Building a multi-unit home could be just the thing you need for your family, in which case you might even be able to take advantage of a density bonus zone. Another great option is to consider the new pre-approved, standardized designs.
So, what will it cost?
So, you want to know how much your home will cost? It’s impossible to give an exact estimate. It all depends on what building a home means to you, but we can give you a ballpark number to get you started.
Custom Family Home
Custom home
Estimated Cost per Sq Foot: $475 and up
At Kenorah, we only build custom, high quality homes. They do not need to be luxurious (although some of them are), but they must all be high quality. The cost of building a custom single-family home varies wildly, depending on your preferences. Location, bespoke elements, and high-end materials all have the potential to significantly raise the costs of your home. Overall, you can expect the cost of design, materials and labour to be higher than average. While we are seeing the starting price of a custom home in the high $400’s, we also see figures that are double this, for luxury homes.
Keep in mind that this estimate is for the build cost, and not landscaping, appliances, home decor, or design/architecture/permitting.
Are you ready to start building your dream home?
When considering building a custom single-family home, the final cost is going to vary based on your unique desires and requirements. Size, quality, complexity and the level of luxury you want all play huge roles in how much you spend on your home. Further, the ways you leverage zoning laws completely shape your options.
Having an idea of what you want , what you need, and knowing your budget is the first step. We always encourage people to first look at if the existing home on the property can be renovated, to save money. Sometimes this is a great option, and sometimes it isn’t. But it’s worth considering before making any big decisions. If you’re going down the route of building new, we believe that the best option is to spend whatever time is required in design and planning to ensure you know exactly what you need, exactly what it will cost, and go into the construction phase with peace of mind, knowing you’re going to have the best home for your needs, completed on-time and on-budget.
