Is the new city zoning actually making Edmonton townhouses cheaper or just raising lot prices?

Honestly, I keep hearing people say the zoning changes in Edmonton last year will bring down the cost of townhouses because developers can build more. But Ngl, looking at listings in Ritchie and Garneau, I see lot prices jumping by $40,000 or more for those double lots. My neighbor sold his single-family lot for $320,000 and the buyer is putting up three townhouses. So is the supply increase really dropping the per-unit price, or are we just paying more for the land now? I think the math works out to the same $450k per unit once construction is done. Am I missing something here, or are others seeing this trend in their neighborhoods too?

2 comments

2 Comments

aaron6775d ago

You said your buddy's corner lot went for 365k and honestly that makes me feel a little better about my own bad decisions, like the time I paid extra for a truck that still breaks down twice a year. The city keeps telling us density will save us money but it's just shifting the cost from the building to the dirt under it. I see the same thing in my neighborhood, developers snatching up any double lot they can and the asking price keeps climbing. That 450k per unit number you threw out sounds about right to me, maybe even a bit low once you factor in permits and materials. Feels like we're just trading one kind of expensive for another kind of expensive, and I'm not sure that's a win for anyone who actually needs a place to live.

tessa_kelly6d ago

I read a city planning report last month that said rezoning typically adds about 15% to lot prices because developers compete for the same parcels. My buddy in Ritchie just sold his corner lot for $365k, which is way over what similar lots went for two years ago. So I think the land cost is eating up any savings from being able to build more units per lot.