New single-detached homes in Vancouver sold for nearly five times their estimated construction costs from 2018 to 2025, according to a new Fraser Institute report.
The report, “The Gap Between Sale Prices and Construction Costs for New Homes in Canadian CMAs, 2018–2025,” released Oct. 27, found that the gap between sale prices and building permit values—an estimate of the cost to physically build a home—varied widely across Canada for new single-detached homes.
The analysis covered 33 census metropolitan areas (CMAs).
Vancouver had the largest gap, averaging 367.4 percent over the study period, meaning average sale prices were 4.7 times the average construction costs, the report said….