When building a new home, there are costs for construction, including land,
materials, and labour. There is also the cost of providing public
infrastructure to the home and the people who live in it. The Metro Vancouver
Regional District recently commissioned a study to determine the amount of
provincial and local infrastructure required per household and per capita to
support population growth in our region.
The per capita cost is $80,039. The per-household cost varies by density. For
lower-density housing, such as detached homes, the new infrastructure cost is
$272,568 per unit. For medium-density housing such as townhomes, the new
infrastructure cost is $242,339 per unit. And for higher-density housing such
as apartments, the new infrastructure cost is $152,535 per unit.
Local governments in our region are responsible for about 60% of the
infrastructure required for new homes, with the remian 40% delivered by the
provincial government.
In Langley City, we charge fees for each new housing unit to help cover some
of these infrastructure costs. The total
local government fees
and
contributions
for a new apartment are around $50,000 per unit. For a detached home, it is
around $80,000 per unit. The costs are nowhere near the cost of providing the
infrastructure.
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Table of infrastructure considered in the study. Select the table to
enlarge.
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A simple suggestion might be to increase the fees for building new homes. For
example, to reach a break-even point, the City and region would have to charge
an additional $40,000 in fees per new apartment unit, raising the fee from
$50,000 to $90,000 per unit. Of course, this would affect housing
affordability.
Local governments do rely on property taxes and user fees as well. We also
have aging infrastructure in all municipalities. Generally, property taxes and
user fees are used to fund the renewal of existing infrastructure and to
support ongoing municipal operations, such as police officers, firefighters,
and people who maintain our parks.
Another suggestion might be to increase property taxes and user fees to pay
for new infrastructure. This would also have affordability implications.
While property taxes, user fees, and municipal fees charged for each new
housing unit will need to increase, the federal government has a role to play.
They really do need to step up and increase federal funding for the
infrastructure required to support population growth.
There are some limitations to the data, including regional variations in
costs. For more information, please read the
Regional Planning Committee Regular July 2, 2026 agenda starting on page
168.