Cost to build a home in central Okanagan

[Babba_not_Gump]

I raised my kids here as an apprentice in their teens. Now they have moved out and I am a jman. I can’t afford to even rent here.

Many of the boomers on this board would have you believe this is because you spend too much on fancy coffees, nice clothes, and a cell phone. They'll say you need to stop feeling so entitled and just need to work harder and save like they did.

And motorcycles as well.

You're a wise man LeroyJ.

[liisgo]

In Vancouver, bureaucratic gatekeepers have added $640,000 in costs per unit of housing with DCC's, zoning, inspection, fees/fees/fees, etc.

Not sure what it is in the Central OK, but no doubt it's up there too.

Is it any wonder working families can't afford to build a home these days?

Ah yes, the part of the problem everyone leaves out.

[lesliepaul]

Local, provincial and federal governments have the majority of the blame in the price of housing.........especially when it comes to building. The delays here in Kelowna to get your building permits is absolutely insane.........then you look at who you are talking to and is it any wonder. Fees for absolutely everything, pretty soon you will have to get a permit to paint a room in YOUR house. Rest assured there is some brain-dead hole in city hall that would try to bring that in.

COMPLETE ing IDIOTS at Kelowna city hall!

[TylerM4]

Saw this thread come back to life and figured I'd post an update.

Long story short - the deal on the building lot we wanted fell through and we gave up on the idea of building a house. The seller was in the process of subdividing his lot from 1 lot to 3 lots. Essentially 1x 30 acre lot to 3x10 acre lots. Anyway, the seller had to give up on the subdivision due to problems with the municipality. Municipality approved the subdivision - the problem is that they wanted $1M in "road improvement fees". This was on top of the already huge fees they wanted to charge and they flat out admitted "we have no plans to improve this road, and won't make plans if you pay the fee".

As you can imagine, adding $1M to the cost of the subdivision process (this is in excess of the over $200k in other fees the municipality wanted to charge) threw a major wrench into the process and it was no-longer a profitable venture for the land owner. They gave up on subdividing the lot and I'm sure they took a large loss as they had invested a significant amount up to that point. Apparently the municipality identified that they would charge road improvement fees, but wouldn't tell them how much until they got everything ready for the final application to have the land subdivided and were shocked when it came in at over $1M. They had anticipated 1/10th that at most.

Anyway, it's a great example of why costs are so high and why provincial and federal governments are pointing then finger at municipalities. To subdivide 1 lot into 3 lots should not cost in the neighborhood of $1.3M in fees/permits. Land owners should not be expected to invest so much time and money prior to knowing what the final fees/cost will be.

[DarbyD]

So it seems when the city wasn't in a huge growth spurt, forever ago, planning was a general layout of basics; streets, water line, power lines, and lot lines. Then go ahead and build your home on a street, connect affordably to the municipal water and power. Poof, you have a home. Of course Kelowna wasn't considered a city back then but people loved their community and wanted a "home" in their community.

Now we're a city, a small city, but we have all these people who moved from much "bigger" cities who want, no demand, all the benefits and extras expected in a "big" city. They don't necessarily love their community so they want to change it to something they came from. The cost of creating the "big city" feel instead of concentrating on the basics of building homes and community for people who live here is destroying us. Just My Opinion ... notice I used "home" instead of "house" or "investment"?

[Rejigger]

Now we're a city, a small city, but we have all these people who moved from much "bigger" cities who want, no demand, all the benefits and extras expected in a "big" city. They don't necessarily love their community so they want to change it to something they came from. The cost of creating the "big city" feel instead of concentrating on the basics of building homes and community for people who live here is destroying us. Just My Opinion ... notice I used "home" instead of "house" or "investment"?

This is the second time in a week that I've read this type of comment. What exactly are the 'benefits and extras' that are being referred to?

As in TylerM4's post, the CoK is asking huge permit money from builders/developers. Does the City want this money so they can create 'benefits and extras'?

What are these 'benefits and extras'?

~

[Panzer130]

Local, provincial and federal governments have the majority of the blame in the price of housing.........especially when it comes to building. The delays here in Kelowna to get your building permits is absolutely insane.........then you look at who you are talking to and is it any wonder. Fees for absolutely everything, pretty soon you will have to get a permit to paint a room in YOUR house. Rest assured there is some brain-dead hole in city hall that would try to bring that in.

COMPLETE ing IDIOTS at Kelowna city hall!

My last building permit took 9 days. How fast are you expecting them?

[Panzer130]

Saw this thread come back to life and figured I'd post an update.

Long story short - the deal on the building lot we wanted fell through and we gave up on the idea of building a house. The seller was in the process of subdividing his lot from 1 lot to 3 lots. Essentially 1x 30 acre lot to 3x10 acre lots. Anyway, the seller had to give up on the subdivision due to problems with the municipality. Municipality approved the subdivision - the problem is that they wanted $1M in "road improvement fees". This was on top of the already huge fees they wanted to charge and they flat out admitted "we have no plans to improve this road, and won't make plans if you pay the fee".

As you can imagine, adding $1M to the cost of the subdivision process (this is in excess of the over $200k in other fees the municipality wanted to charge) threw a major wrench into the process and it was no-longer a profitable venture for the land owner. They gave up on subdividing the lot and I'm sure they took a large loss as they had invested a significant amount up to that point. Apparently the municipality identified that they would charge road improvement fees, but wouldn't tell them how much until they got everything ready for the final application to have the land subdivided and were shocked when it came in at over $1M. They had anticipated 1/10th that at most.

Anyway, it's a great example of why costs are so high and why provincial and federal governments are pointing then finger at municipalities. To subdivide 1 lot into 3 lots should not cost in the neighborhood of $1.3M in fees/permits. Land owners should not be expected to invest so much time and money prior to knowing what the final fees/cost will be.

Municipalities have convinced tax payers that “Developers” are just greedy people who deserve to pay development cost charges and a slew of other fees, rather than sharing the infrastructure cost throughout the entire community. Instead of everyone paying an equal share for infrastructure, we get to pay an equal share to pay for crime prevention and homeless support due to rising housing costs.

I recently applied to subdivide a large lot in the lower mission to create two new rental homes. The city wanted 45K in development costs. It out the cost of construction too high to make rental work, so the rental homes will never happen.

[69cutlass]

Many of the boomers on this board would have you believe this is because you spend too much on fancy coffees, nice clothes, and a cell phone. They'll say you need to stop feeling so entitled and just need to work harder and save like they did.

And motorcycles as well.

You're a wise man LeroyJ.

Those are words he has guaranteed never heard before.

[Mazdatruck]

*removed*

[lesliepaul]

Local, provincial and federal governments have the majority of the blame in the price of housing.........especially when it comes to building. The delays here in Kelowna to get your building permits is absolutely insane.........then you look at who you are talking to and is it any wonder. Fees for absolutely everything, pretty soon you will have to get a permit to paint a room in YOUR house. Rest assured there is some brain-dead hole in city hall that would try to bring that in.

COMPLETE ing IDIOTS at Kelowna city hall!

My last building permit took 9 days. How fast are you expecting them?

Months for several friends and much depends on which area of Kelowna.

[BC Landlord]

Allow $300/sqft.

Just for the construction, plus lot prep, landscaping, driveway, retaining walls, blasting, etc.

Then add upgrades to plumbing, electrical, floor coverings, cabinets, lighting, heating, roofing, etc.

You would be happy if you found anything bellow $450/sqft finished, and that's without landscaping.

[Grandan]

Municipalities have convinced tax payers that “Developers” are just greedy people who deserve to pay development cost charges and a slew of other fees, rather than sharing the infrastructure cost throughout the entire community. Instead of everyone paying an equal share for infrastructure, we get to pay an equal share to pay for crime prevention and homeless support due to rising housing costs.

I recently applied to subdivide a large lot in the lower mission to create two new rental homes. The city wanted 45K in development costs. It out the cost of construction too high to make rental work, so the rental homes will never happen.

If every home owner had to pay "their Share" of development cost charges there would be riots in the streets! At this time it is purposely a level playing field with land developers paying the needed improvement or paying toward wider ranging fees. Someone who builds a house and sells it to someone will be impacting the community outside their lot.
John Q Citizen should not have to pay your service fees to extend your sewer, water, electrical, cable and storm drainage. There is also curb and gutter, sidewalks and road widening. You want it then you pay for it. Thousands of other "developers" have navigated the system successfully perhaps your development needs to be reframed with a different plan.
In many cases, people are having to give up some of their land for road right of way widening.

[Tankur]

Allow $300/sqft.

Just for the construction, plus lot prep, landscaping, driveway, retaining walls, blasting, etc.

Then add upgrades to plumbing, electrical, floor coverings, cabinets, lighting, heating, roofing, etc.

You would be happy if you found anything bellow $450/sqft finished, and that's without landscaping.

360$ sq ft on the house I’m working. Nhl player

[fluffy]

Allow $300/sqft.

Yesterday I was speaking with a real estate agent who was active in the building supply sector before going into his latest career. He said the numbers he offers his clients these days is $400.00/sq.ft. as a starting point, and a year for completion. He said a huge part of this is cost and availability of skilled trades.