The 2026 land market in brief
Development land is priced on what can be built on it, less what it will cost to get there. Two things set that in 2026: provincial housing laws passed since late 2023 that raised allowable density on many residential lots, and a market where builders face tighter margins. Altus Group reported Vancouver land transactions of $1.2 billion in H1 2026, down 14% year over year, including nearly $426 million of residential land (down 6%) and nearly $788 million of industrial, commercial and institutional land (down 18%) (Altus Group, Vancouver update Q2 2026). In the Okanagan, the William Wright Report Q2 2026 notes that industrial "sale prices and land values continued to drift lower" (William Wright Commercial).
For sellers, that means the buyer pool is narrower and more selective than a few years ago, and the quality of the information you provide about zoning, servicing and costs has a direct effect on price and certainty.
Provincial housing legislation that changed land values
Between November 2023 and 2025, BC passed a series of housing statutes that override or constrain local zoning. The main ones for land sellers:
| Law | What it does | Key dates |
|---|---|---|
| Bill 44 (2023), Housing Statutes (Residential Development) Amendment Act | Small-scale multi-unit housing (SSMUH): in municipalities over 5,000 people, on lots within an urban containment boundary zoned for single-family or duplex use, at least 3 units on lots up to 280 m² and 4 units on larger lots, and 6 units on qualifying lots near frequent transit. Also bars public hearings for OCP-consistent rezonings that are at least half residential by floor area. | Passed third reading November 29, 2023; bylaws to be updated by June 30, 2024 |
| Bill 47 (2023), Housing Statutes (Transit-Oriented Areas) Amendment Act | Transit-oriented areas (TOAs) around SkyTrain stations and bus exchanges with minimum allowable densities and no off-street residential parking minimums. | Introduced November 2023; designations due June 30, 2024 |
| Bill 46 (2023), Housing Statutes (Development Financing) Amendment Act | New amenity cost charges (ACCs) for community centres, daycares, libraries and similar; development cost charges (DCCs) expanded to fire, police and solid waste facilities. | Royal Assent November 30, 2023 |
| Bill 16 (2024), Housing Statutes Amendment Act | Inclusionary zoning, updated density bonus rules, tenant protection bylaws, transportation demand management and wider off-site works requirements. | Royal Assent April 25, 2024; density bonus compliance by June 30, 2026 |
| Bill 25 (2025) | Closes gaps in the SSMUH rules so that zones with any single-family or duplex-restricted parcels must meet the minimum unit densities. | Bylaws to comply by June 30, 2026, except where an extension applies |
Sources: Bill 44 (BC Laws); Province of BC, small-scale multi-unit housing; BC Gov News, transit-oriented legislation, November 8, 2023; MLT Aikins on Bill 46; Province of BC, new local government tools.
Transit-oriented areas. The Province defines TOAs as land within 800 m of a rapid transit station and 400 m of a bus exchange, and says all 104 TOAs in 31 municipalities are now in effect (Province of BC). Near Metro Vancouver SkyTrain stations the minimums reach 5.0 FAR and up to 20 storeys within 200 m, stepping down to 3.0 FAR and 8 storeys at 401–800 m. Outside Metro Vancouver, a September 2026 Sightline Institute review counts four TOAs in Kelowna and one in Victoria (Sightline Institute).
Development charges. On April 1, 2026 the Province proposed amendments to let local governments reduce or waive DCCs for more housing types, including market multi-unit buildings, beyond the four categories currently eligible (BC Gov News, April 1, 2026). Check the status and your municipality's current DCC and ACC bylaws, because these charges come straight off what a builder can pay for land.
OCPs, zoning and rezoning
Two local documents set what can be built:
- Official community plan (OCP). The long-range land-use designation (for example, low-rise residential, mixed-use or industrial). Bill 44 required municipalities to complete their first review and update of OCPs by December 31, 2025, aligned to standardized housing needs reports (MLT Aikins on Bill 44).
- Zoning bylaw. What is allowed today: uses, density, height, setbacks, parking.
Land already zoned for its best use is worth more, and sells faster, than land that needs a rezoning, because a rezoning adds time, cost and risk. Where a proposal is consistent with the OCP and mostly residential, Bill 44 removes the public hearing step, which can shorten timelines. A rezoning that also needs an OCP amendment is a longer path. For how councils, development permits and approvals work in BC, the sister site covers zoning and local government in BC.
How density and zoning drive land value
Builders price land using a residual approach: the value of the finished project, minus construction, soft costs, financing, development charges and the builder's required profit, leaves what they can pay for the land. A report prepared for Metro Vancouver puts the principle plainly: "When rezoning increases density, it generates new land value" (Metro Vancouver, Reducing the Barrier of High Land Cost, 2019).
What follows from that:
- More buildable area usually means more value, which is why development land is often discussed per buildable sq ft rather than per acre.
- Costs subtract directly. Higher DCCs, ACCs, inclusionary housing requirements, off-site works or tenant relocation obligations lower what a builder can pay.
- Density is not the same as feasibility. Six units allowed on a lot does not help if servicing, lot shape, setbacks or construction costs make only three viable.
- Existing tenants matter. Bill 16 lets municipalities adopt tenant protection bylaws requiring owners to provide financial and moving assistance to displaced tenants, which a buyer will cost into an offer on a tenanted rental property.
- Holding income helps. A site with rent coming in while approvals proceed is easier to finance and hold.
Valuation methods for income property and land are compared in how commercial property is valued in BC.
Subject-to-rezoning deals and land assemblies
When a site needs a rezoning, buyers often offer a higher price in exchange for time. Common structures:
- Subject-to-rezoning contract. The buyer applies for rezoning, and completion happens only once it is approved. Sellers should negotiate the length of the period, extension fees, deposits that become non-refundable at set milestones, who pays for application costs, and whether the seller gets the reports if the deal fails.
- Option agreement. The buyer pays for the right, but not the obligation, to buy later at a set price or formula.
- Land assembly. Neighbouring owners sell together so a builder can create a larger parcel. A Vancouver-area law firm warns that assembly conditions often take "half a year or more" to satisfy, leaving each property "effectively tied up" in the meantime, and advises sellers to have a lawyer review documents, negotiate meaningful deposits, and seek compensation before granting a registered option (Pazder Law).
Long-dated conditional contracts shift risk between buyer and seller in ways that are easy to miss: extension rights, assignment clauses, deposit release terms and what happens if council says no. Have a BC real estate lawyer review any subject-to-rezoning, option or assembly agreement, and an accountant review the tax timing.
Agricultural Land Reserve limits
Land inside the Agricultural Land Reserve cannot be treated as development land on the strength of a local rezoning. Subdivision, non-farm use and exclusion each need an application to the Agricultural Land Commission, and exclusion applications may only be submitted by the Province, local governments, First Nation governments and other prescribed bodies, not by private owners (Agricultural Land Commission). The sister site explains the rules in ALR and farm classification.
Documents buyers will ask for
- Title search and chargesCovenants, easements, rights-of-way and any registered agreements that limit use.
- Survey or legal planLot dimensions, area and encroachments.
- OCP designation and zoning confirmationIncluding how SSMUH, TOA or other provincial rules apply to the lot.
- Servicing informationWater, sanitary, storm and power capacity, and any required upgrades.
- Development chargesCurrent DCC and ACC rates and any municipal reports on upcoming changes.
- Environmental and geotechnical reportsPast uses, contamination screening, soils and slope.
- Prior applications and studiesPre-application meeting notes, concept plans, traffic or servicing studies already done.
- Tenancy detailsLeases, rents and end dates for any existing occupants.
Having these ready before listing shortens the buyer's due diligence period and reduces the number of conditions in an offer. General sale steps are on the selling commercial property page.
How Commercial Real Estate Group can help
Sean Phillips, REALTOR® with Coldwell Banker Executives Realty, helps owners across BC prepare and market land with development potential, from single lots affected by SSMUH to larger commercial and industrial parcels. Book a free 10-minute Zoom intro; site-specific advisory is paid and quoted per property.