​The "Invisible" Price Tag: Why Your New Condo Costs More Than Just Concrete

When you walk into a sleek new presentation centre in Burnaby or anywhere in Metro Vancouver, it’s easy to look at the price sheet and think, “There is no way it costs this much to build some concrete and glass.”

It’s a fair reaction. But if you peel back the layers of a typical Metro Vancouver development, you’ll find that the developer is often managing a "margin of error" that is much tighter than you’d think. In fact, between the city, the province, and the bank, a huge portion of your purchase price is spoken for before the first shovel even hits the ground.

Here is what actually goes into the price of a new home in 2026. Keep in mind these numbers can change at any given time.

1. The "Growth Pays for Growth" Fees (CACs & DCCs)

Municipalities in BC operate on a principle called "growth pays for growth." This means the city doesn't want existing taxpayers to foot the bill for new parks or community centres. Instead, they charge the developer.

• CACs (Community Amenity Contributions): These are fees paid to the city in exchange for the right to build more density. In some parts of Vancouver or Burnaby, these can reach $30 to $50 per square foot.

• DCCs & ACCs (Development/Amenity Cost Charges): These cover the basics—pipes, sewers, roads, and fire halls. In 2026, these charges can easily add $40,000 to $80,000 or more per door depending on the city.

2. The "Hard" Costs: Concrete, Steel, and Labour

This is the physical building. Since 2022, we’ve seen massive inflation in construction materials.

• The Reality: In Metro Vancouver, "hard costs" for a high-rise now range from $350 to $550+ per square foot.

• The Seismic Factor: Because we live in a high-risk earthquake zone, our building codes are some of the strictest in the world. That safety comes with a high price tag in structural engineering.

3. The "Soft" Costs: The Invisible Expenses

This is the category most people forget. It includes:

• Architecture & Engineering: Designing a 40-storey tower isn't cheap.

• Financing: Developers don't build with their own cash; they borrow it. With interest rates where they are today, the cost of carrying a multi-million dollar loan for 4–5 years of construction is staggering.

• Marketing & Commissions: The cost of the sales centre, the scale models, and the staff to run it.

4. Taxes (The Silent Partner)

Don't forget the tax man. Between GST (5%) and the various provincial taxes involved in land transfers and development, the government is often the biggest "shareholder" in a project without taking any of the risk.

The Breakdown: Where Does Your Dollar Go?

While every project is different, a rough "rule of thumb" for a Metro Vancouver condo looks like this:

• Land Cost: 15–25%

• Hard Construction Costs: 35–45%

• Soft Costs & Government Fees: 20–30%

• Developer Profit: 10–15% (Note: Most banks won’t even lend to a developer if the projected profit is less than 12-15%, as the risk of a market dip is too high).

The Bottom Line

When you see prices rising, it’s rarely just a "cash grab." It’s a reflection of the rising cost of land, the increasing fees from the city, and the high cost of high-quality construction.

Understanding these costs helps you see the intrinsic value of what you’re buying. You aren't just buying a box in the sky; you're paying for the infrastructure, the safety standards, and the community amenities that make our neighbourhoods some of the best in the world to live in.

Disclaimer

​The figures and percentages provided in this post are based on current 2026 market averages and industry benchmarks for concrete high-rise developments in Metro Vancouver. These numbers are intended for educational and illustrative purposes only and do not represent the specific financial pro-forma of any single developer or project. Construction costs, municipal fees (including ACCs and DCCs), and tax obligations are subject to change based on location, building type, and evolving provincial and municipal legislation. Readers should conduct their own due diligence and consult with a qualified financial or legal professional before making investment decisions. E&OE (Errors and Omissions Excepted).