{"id":37862,"date":"2025-03-10T10:00:58","date_gmt":"2025-03-10T17:00:58","guid":{"rendered":"https:\/\/spacing.ca\/vancouver\/?p=37862"},"modified":"2025-08-14T10:54:30","modified_gmt":"2025-08-14T17:54:30","slug":"rising-high-falling-short-social-and-economic-division","status":"publish","type":"post","link":"https:\/\/spacing.ca\/vancouver\/2025\/03\/10\/rising-high-falling-short-social-and-economic-division\/","title":{"rendered":"Rising High, Falling Short: Social and Economic Division"},"content":{"rendered":"<h3><a href=\"http:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-37840 alignleft\" src=\"http:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner-600x72.png\" alt=\"\" width=\"600\" height=\"72\" srcset=\"https:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner-600x72.png 600w, https:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner-300x36.png 300w, https:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner-768x92.png 768w, https:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner-1200x144.png 1200w, https:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner-940x113.png 940w, https:\/\/spacing.ca\/vancouver\/wp-content\/uploads\/sites\/6\/2025\/02\/RisingHIghFallingShort_logo_banner.png 1250w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/h3>\n<h3 class=\"p1\"><span class=\"s1\"><b>Key Metrics Summary<\/b><\/span><\/h3>\n<p style=\"padding-left: 40px;\"><span class=\"s1\"><strong>Building<\/strong><b>: <\/b>A 40-story residential building constructed of a reinforced concrete frame with a curtain wall facade on a site <em>without<\/em> underground parking, existing buildings, or tenant relocations. The calculations use <strong>construction costs alone<\/strong> as a reference point (via the<\/span>&nbsp;<a href=\"https:\/\/addyinvest.ca\/2023\/03\/17\/altus-2023-canadian-cost-guide\/\"><em style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">Canadian Costs Guide 2023<\/em><\/a><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\"> by Altus Group). Other<\/span><span class=\"s1\"> costs including land costs, development profit, etc. are NOT included. To be explicitly clear: <em>the intent is not to imply that construction costs rise linearly with elevation, nor that they rise in a strict engineering or accounting sense<\/em>.&nbsp;&nbsp;<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Using the Canadian Cost Guide 2023 by Altus Group as a reference point, the article applies a simplified algorithm to illustrate how unit prices can increase with elevation. The per-square-foot figures from Altus are not intended to represent literal, floor-specific construction costs. Rather, they serve as a surrogate input to model relative vertical pricing. <em>In this illustrative framework<\/em>, the <strong>square foot cost<\/strong>&nbsp;<strong>ranges from $330\/sq. ft. at lower floors to approximately $600\/sq. ft. at the highest levels<\/strong>. Remember, the latter is not a reflection of actual construction cost escalation but is used to understand and visualize how market value premiums accumulate with height.<\/li>\n<li><span style=\"color: #171717;\">Based on above,<\/span><strong><span style=\"color: #171717;\"> the average Vancouver household<\/span> would be priced out between the 3rd and 8th level<\/strong>, <span class=\"s1\">leaving over 30 stories out of reach to the average Vancouverite. If additional costs were included\u2014such as land costs and development profits\u2014the number of affordable floor levels would decline. This is the best possible scenario.&nbsp;<\/span><\/li>\n<li><strong data-start=\"4085\" data-end=\"4110\">Total Price Disparity<\/strong> across the building is <strong data-start=\"4134\" data-end=\"4143\">$109M<\/strong>.<\/li>\n<li><strong data-start=\"4150\" data-end=\"4187\">Economic Inequality per Household<\/strong> is about <strong data-start=\"4191\" data-end=\"4203\">$270,000.<\/strong><\/li>\n<li><strong style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); font-size: 1rem;\">Social Costs of Inequality<\/strong><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">: is about <\/span><b style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">$50,000 per household<\/b><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">, or <\/span><b style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">$20.3 million<\/b><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\"> for the entire building.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong><span class=\"s1\">Everyday Equivalents and Comparisons <\/span><\/strong><span class=\"s1\">(40-story building <em>without<\/em> underground parking)<\/span><strong><span class=\"s1\">: <\/span><\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li class=\"li1\"><span class=\"s1\">Equivalent to building a <em>new elementary school<\/em> or <em>community sports complex<\/em><\/span><\/li>\n<li class=\"li1\"><b><\/b><span class=\"s1\">Covers hospital stays for 2,907 patients.<\/span><\/li>\n<li class=\"li1\"><b><\/b><span class=\"s1\">Covers groceries for<em> 1,696 families<\/em>.<\/span><\/li>\n<li class=\"li1\"><b><\/b><span class=\"s1\">Provides startup funding for <em>407 small businesses<\/em>.<\/span><\/li>\n<li>6-storey residential mid-rise <em>Social Costs of Inequality<\/em> is <em>less than 5%<\/em> of that of a 40-story building and <em>all <\/em><span class=\"s1\"><em>units<\/em> would remain within the affordable range for the average Vancouver household.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 class=\"p1\"><span class=\"s1\"><b>Context<\/b><\/span><\/h3>\n<p class=\"p1\"><span class=\"s1\">High-rise living is often associated with modernity, luxury, and prestige. However, behind the sleek facades of these towers lies a more complex reality. High-rise urbanism is not just reshaping skylines\u2014it is actively influencing social stratification. As cities grow vertically, elevation increasingly correlates not just with views, but with socio-economic positioning. In many ways, this mirrors the exclusionary zoning policies that shape urban development.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Real estate trends in Vancouver and other major cities reveal a clear pattern: as floor levels increase, so do property prices. This pricing structure has become so ingrained in the real estate industry that it is rarely questioned. The lack of publicly accessible data further complicates efforts to analyze these trends, making it difficult to determine precisely how much property values increase with elevation.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Fortunately, the <a href=\"https:\/\/www.roomvu.com\/blog\/vancouver-real-estate-news\/\">RoomVu blog analyzed MLS real estate data<\/a> in 2019 and <\/span><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">provided insights into this phenomenon. Although the data has not been updated, its findings remain useful. At the time, a 26th-floor apartment in Coal Harbour was priced at $5,840 per square foot, while a penthouse on the 48th floor was valued at $35.8 million. This price escalation highlights a clear economic divide, where higher floors are often occupied by the wealthiest residents.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Mid-level floors offer a more attainable\u2014yet still expensive\u2014version of high-rise living. Upper-middle-class residents benefit from advantages such as better lighting and reduced street noise, but they do not experience the same level of exclusivity as penthouse owners. Meanwhile, lower floors tend to be the most affordable, but they also often come with fewer of the benefits associated with high-rise luxury. This vertical hierarchy reflects broader economic disparities, where status and opportunity are unevenly distributed within urban environments.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Although real estate prices have shifted since 2019, the percentage increases per floor still provide a useful framework for understanding social stratification within high-rise buildings:<\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li1\"><b><\/b><span class=\"s1\"><b>Floors 1-10:<\/b> Approx. <em>3% increase<\/em> per floor<\/span><\/li>\n<li class=\"li1\"><b><\/b><span class=\"s1\"><b>Floors 10-25:<\/b> Approx. <em>0.7% increase<\/em> per floor<\/span><\/li>\n<li class=\"li1\"><b><\/b><span class=\"s1\"><b>Floors 25-35:<\/b> Approx.<em> 1.2% increase<\/em> per floor<\/span><\/li>\n<li class=\"li1\"><b><\/b><span class=\"s1\"><b>Floors 35 and up:<\/b> Approx. <em>2.3% increase<\/em> per floor<\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">In the absence of newer data, these figures offer a baseline for examining how vertical development influences urban inequality. More specifically, one can insert a surrogate input into the algorithm\u2014in this case, the figures from the <a href=\"https:\/\/addyinvest.ca\/2023\/03\/17\/altus-2023-canadian-cost-guide\/\"><em style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">Canadian Costs Guide 2023<\/em><\/a><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\"> by Altus Group<\/span> to model relative vertical pricing. It is worth noting that I could have used average unit sales prices instead\u2014or even a fictional starting value\u2014the resulting pattern of vertical pricing would have remained unchanged.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">This being the case, it&#8217;s important note that the outputs from the algorithm are <em>not<\/em> literal, floor-specific construction costs, but as surrogates to model vertical stratification.<\/span><span class=\"s1\">&nbsp;In reality, construction costs do not rise linearly with elevation even though there is a correlation between construction costs and sales prices, in broad terms.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The point here is to illustrate relative increases, not calculate actual construction costs. More specifically, the goal is to draw attention to how the value captured on higher floors (through price premiums) is not matched by a proportionate increase in actual (construction) cost\u2014highlighting how <em>profit<\/em>, not cost, is the primary driver of vertical price gradients.<\/span><\/p>\n<p>B<span class=\"s1\">eyond economic factors, however, high-rise living also reinforces a symbolic hierarchy. Unobstructed views of natural landscapes and cityscapes are often considered status symbols. Those residing on higher floors benefit from both the aesthetics and the perception of having a privileged vantage point over the city. By contrast, lower-floor residents, whose views may be obstructed or nonexistent, experience a different reality. The lack of access to expansive views can reflect broader patterns of exclusion within urban development.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">High-rise amenities further contribute to social divisions. Many luxury towers boast concierge services, rooftop gardens, private gyms, and lounges, yet these features are not equally accessible to all residents. Penthouse occupants often enjoy exclusive access to private elevators, rooftop terraces, and premium services, while those living lower in the building may face restrictions on shared amenities. These buildings function as microcosms of the city itself, where access to resources is dictated by economic status and exclusivity is embedded into architectural design.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Beyond tangible disparities, high-rise living also has psychological effects. For those residing at the top, physical elevation can foster a sense of detachment from the city below. Everyday concerns such as traffic, noise, and social issues seem distant\u2014both literally and figuratively. In some cities, such as Caracas, Venezuela, the wealthiest residents bypass urban streets altogether, commuting via helicopter from one rooftop to another.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Conversely, lower-floor residents often look up at the unattainable luxury above them, reinforcing social divisions and deepening perceptions of inequality and exclusion.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">This is why many argue that residential towers perpetuate a form of spatial apartheid through vertical stratification, exclusive access, and segregated infrastructure. While not always explicitly designed to segregate, high-rises often produce a deeply divided urban experience when driven by profit.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>So What?<\/b><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Using the <a href=\"https:\/\/www.roomvu.com\/blog\/vancouver-real-estate-news\/\"><em>RoomVu<\/em> data<\/a> as a reference point, we can consider the implications of a typical 40-story building\u2014the standard height of many new towers near SkyTrain stations under British Columbia\u2019s <a href=\"https:\/\/www2.gov.bc.ca\/gov\/content\/housing-tenancy\/local-governments-and-housing\/housing-initiatives\/transit-oriented-development-areas\">Transit-Oriented Development<\/a> &nbsp;regulations, the <a href=\"https:\/\/vancouver.ca\/home-property-development\/broadway-plan.aspx\">Broadway Plan<\/a>, and other large-scale projects such as the proposed Safeway redevelopment at <a href=\"https:\/\/www.shapeyourcity.ca\/1780-e-broadway-rz\">1780 East Broadway<\/a>.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Assuming a conventional reinforced concrete structure with Vancouver\u2019s signature curtain wall design and no underground parking on an empty site, the social and economic impacts using construction cost alone as a reference point (excluding variables like land costs and developer profits) are substantial.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">For example, identical 1,000 sq.ft. apartment units would see their cost increase by approximately <b>83% from Floor 1 to Floor 40<\/b>\u2014equating to an additional $10,000\u2013$11,000 per unit per floor across the first 10 stories alone. In practical terms, this means that an apartment on the 10th floor would cost about $100,000 more than one on the first floor solely due to height.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Based on Vancouver\u2019s median household income of $82,000, an \u201caffordable home\u201d would be priced between $350,000 and $400,000. However, even before factoring in land costs, development fees, and other expenses, the construction costs of a high-rise alone would <b>price the average Vancouverite out of a unit above the 3rd to 8th floor<\/b>\u2014leaving over 30 stories effectively out of reach. If additional costs were included\u2014such as land costs and development profits\u2014the number of affordable floor levels would drop. This offers<\/span><span class=\"s1\"> the best possible scenario where no profits are desired, and other related costs (land, design, etc.) are negligible.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The <em>Social Cost of Inequality<\/em> in such a building is estimated at <b>$50,000 per household<\/b>, or <b>$20.3 million for the entire building<\/b>\u2014equivalent to the cost of constructing a new elementary school or community sports complex. Alternatively, this amount could fund hospital stays for <em>2,907 patients<\/em>, provide startup funding for <em>407 small businesses<\/em>, or cover groceries for <em>1,696 families<\/em>.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">By comparison, a six-story wood-framed residential mid-rise has an estimated <em>Social Cost of Inequality<\/em> of approximately<b> $950,000<\/b>, which is <em>less than 5% <\/em>of that of a 40-story tower. Importantly, <em>every single unit<\/em> within this building type would remain within the affordable range for the average Vancouver household.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Food for Thought<\/b><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">High-rise urbanism is more than a response to population growth\u2014it <em>reflects and reinforces<\/em> economic, social, and psychological divisions in modern cities. <\/span><span class=\"s1\">Without careful consideration, vertical cities evolve into rigid hierarchies, where privilege rises while others remain literally beneath it. Within the context of contemporary cities, towers are <\/span><span class=\"s1\">spatial instruments of exclusion, reflecting and amplifying socio-economic divides.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">A particularly stark example of this dynamic is the use of &#8220;<em>poor doors<\/em>&#8221; in mixed-income towers, where social housing is integrated into high-rise developments but maintains separate entrances and amenities. Several proposed buildings within the <em>Broadway Plan<\/em> and British Columbia\u2019s <em>Transit-Oriented Area<\/em> zones incorporate these \u201c<em>poor doors<\/em>.\u201d The acceptance of such practices within current policies raises important questions about how contemporary urban planning defines equity.<\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li1\"><span class=\"s1\">If high-rise living functions as a vertical form of exclusionary zoning and spatial apartheid, how does this align with efforts to promote &#8220;inclusionary zoning&#8221;?<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Can towers be designed to encourage social integration rather than reinforce divisions, especially within a market-driven system that monetizes height differences to meet profit targets?<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Given the inherently stratified nature of high-rise buildings, what are the broader urban consequences when entire neighbourhoods or districts are planned to prioritize these structures?<\/span><\/li>\n<li>How do planners and decision-makers condemn discriminatory urban planning practices while simultaneously endorsing architectural forms that reinforce privilege and exclusion?<\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">Without intentional policies and strategic planning, high-rise living will not only shape city skylines\u2014it will also reinforce social inequalities for generations to come.<\/span><\/p>\n<p class=\"p1\"><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">***<\/span><\/p>\n<p class=\"p2\"><b style=\"color: var(--tw-prose-headings); font-family: proxima-nova, ui-sans-serif, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, 'Helvetica Neue', Arial, 'Noto Sans', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 1.25em; background-color: rgb(255 255 255\/var(--tw-bg-opacity));\">Calculations and Assumptions<\/b><\/p>\n<h3 class=\"p1\"><span class=\"s1\"><b>BUILDING (40-STOREY)<\/b><\/span><\/h3>\n<p><span class=\"s1\"><strong>BUILDING ASSUMPTION OVERVIEW:<\/strong> A 40-story residential building constructed of a reinforced concrete frame with a curtain wall facade on a site <em>without<\/em> underground parking, existing buildings, or tenant relocations. Although I could have used average unit sales prices instead\u2014or even a fictional starting value\u2014the calculations use construction costs outlined in the <a href=\"https:\/\/addyinvest.ca\/2023\/03\/17\/altus-2023-canadian-cost-guide\/\"><em style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">Canadian Costs Guide 2023<\/em><\/a><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\"> by Altus Group <em>as a reference point<\/em> and input into the algorithm. Other<\/span> costs including land costs, development profit, etc. are NOT included.&nbsp;<\/span><\/p>\n<p class=\"p1\" style=\"padding-left: 40px;\"><span class=\"s1\"><b>Footprint<\/b><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li class=\"p1\"><span class=\"s1\"><em>Assumption<\/em>: The building has a rectangular footprint with dimensions of 100 feet by 100 feet.<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\"><em>Calculation<\/em>: 100 ft \u00d7 100 ft = 10,000 ft\u00b2 (building footprint).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p class=\"p1\" style=\"padding-left: 40px;\"><span class=\"s1\"><b>Total Above-Ground Floor Area<\/b><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li class=\"p1\"><span class=\"s1\"><em>Assumption<\/em>: The building has 40 stories, and each story has the same floor area as the footprint.<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\"><em>Calculation<\/em>: 10,000 ft\u00b2 \u00d7 40 stories = 400,000 ft\u00b2 (total above-ground floor area).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"s1\"><b>Cost Increase Per Floor Assumptions\/Algorithm<\/b><\/span><\/h3>\n<p style=\"padding-left: 40px;\"><strong data-start=\"279\" data-end=\"305\">Base construction cost<\/strong>: $330\/sqft (Floor 1) via <em>Canadian Costs Guide 2023<\/em> by Altus Group.<\/p>\n<p style=\"padding-left: 40px;\"><strong data-start=\"332\" data-end=\"361\">Price increase per floor:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"366\" data-end=\"520\">\n<li data-start=\"366\" data-end=\"400\">Floors 1-10: <strong data-start=\"381\" data-end=\"387\">3%<\/strong> per floor.<\/li>\n<li data-start=\"403\" data-end=\"440\">Floors 10-25: <strong data-start=\"419\" data-end=\"427\">0.7%<\/strong> per floor.<\/li>\n<li data-start=\"443\" data-end=\"480\">Floors 25-35: <strong data-start=\"459\" data-end=\"467\">1.2%<\/strong> per floor.<\/li>\n<li data-start=\"483\" data-end=\"520\">Floors 35-40: <strong data-start=\"499\" data-end=\"507\">2.3%<\/strong> per floor.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\" data-start=\"522\" data-end=\"539\"><strong data-start=\"526\" data-end=\"537\">Formula<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">Price per sq. ft. (Floor n) = Price per sq. ft. (Floor n\u22121) \u00d7 (1 + Percentage Increase)<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong data-start=\"661\" data-end=\"677\">Calculations<\/strong><\/p>\n<p style=\"padding-left: 80px;\" data-start=\"681\" data-end=\"727\"><strong data-start=\"686\" data-end=\"725\">Floors 1-10 (3% Increase Per Floor)<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"728\" data-end=\"847\">\n<li data-start=\"728\" data-end=\"754\"><strong data-start=\"730\" data-end=\"741\">Floor 1<\/strong>: $330\/sqft<\/li>\n<li data-start=\"755\" data-end=\"798\"><strong data-start=\"757\" data-end=\"768\">Floor 2<\/strong>: $330 \u00d7 1.03 = $339.90\/sqft<\/li>\n<li data-start=\"799\" data-end=\"847\"><strong data-start=\"801\" data-end=\"813\">Floor 10<\/strong>: $330 \u00d7 (1.03)^9 = $430.50\/sqft<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 80px;\" data-start=\"849\" data-end=\"898\"><strong data-start=\"854\" data-end=\"896\">Floors 10-25 (0.7% Increase Per Floor)<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"899\" data-end=\"1001\">\n<li data-start=\"899\" data-end=\"947\"><strong data-start=\"901\" data-end=\"913\">Floor 11<\/strong>: $430.50 \u00d7 1.007 = $433.51\/sqft<\/li>\n<li data-start=\"948\" data-end=\"1001\"><strong data-start=\"950\" data-end=\"962\">Floor 25<\/strong>: $433.51 \u00d7 (1.007)^14 = $478.50\/sqft<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 80px;\" data-start=\"1003\" data-end=\"1052\"><strong data-start=\"1008\" data-end=\"1050\">Floors 25-35 (1.2% Increase Per Floor)<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"1053\" data-end=\"1154\">\n<li data-start=\"1053\" data-end=\"1101\"><strong data-start=\"1055\" data-end=\"1067\">Floor 26<\/strong>: $478.50 \u00d7 1.012 = $484.24\/sqft<\/li>\n<li data-start=\"1102\" data-end=\"1154\"><strong data-start=\"1104\" data-end=\"1116\">Floor 35<\/strong>: $484.24 \u00d7 (1.012)^9 = $537.50\/sqft<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 80px;\" data-start=\"1156\" data-end=\"1205\"><strong data-start=\"1161\" data-end=\"1203\">Floors 35-40 (2.3% Increase Per Floor)<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"1206\" data-end=\"1307\">\n<li data-start=\"1206\" data-end=\"1254\"><strong data-start=\"1208\" data-end=\"1220\">Floor 36<\/strong>: $537.50 \u00d7 1.023 = $549.86\/sqft<\/li>\n<li data-start=\"1255\" data-end=\"1307\"><strong data-start=\"1257\" data-end=\"1269\">Floor 40<\/strong>: $549.86 \u00d7 (1.023)^4 = $602.50\/sqft<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"1422\" data-end=\"1459\"><strong data-start=\"1425\" data-end=\"1457\">Total Cost Per Floor<\/strong><\/h3>\n<p style=\"padding-left: 40px;\" data-start=\"1461\" data-end=\"1482\"><strong data-start=\"1465\" data-end=\"1480\">Assumptions<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"1483\" data-end=\"1544\">\n<li data-start=\"1483\" data-end=\"1544\">Each floor contains <strong data-start=\"1505\" data-end=\"1520\">10,000 sq.ft.<\/strong> of residential space.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\" data-start=\"1546\" data-end=\"1563\"><strong data-start=\"1550\" data-end=\"1561\">Formula<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">Total Cost (Floor n) = Price per sq.ft. (Floor n) \u00d7 10,000<\/span><\/span><\/span><\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\" data-start=\"1649\" data-end=\"1671\"><strong data-start=\"1653\" data-end=\"1669\">Calculations<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"1672\" data-end=\"1907\">\n<li data-start=\"1672\" data-end=\"1715\"><strong data-start=\"1674\" data-end=\"1685\">Floor 1<\/strong>: $330 \u00d7 10,000 = $3,300,000<\/li>\n<li data-start=\"1716\" data-end=\"1763\"><strong data-start=\"1718\" data-end=\"1730\">Floor 10<\/strong>: $430.50 \u00d7 10,000 = $4,305,000<\/li>\n<li data-start=\"1764\" data-end=\"1811\"><strong data-start=\"1766\" data-end=\"1778\">Floor 25<\/strong>: $478.50 \u00d7 10,000 = $4,785,000<\/li>\n<li data-start=\"1812\" data-end=\"1859\"><strong data-start=\"1814\" data-end=\"1826\">Floor 35<\/strong>: $537.50 \u00d7 10,000 = $5,375,000<\/li>\n<li data-start=\"1860\" data-end=\"1907\"><strong data-start=\"1862\" data-end=\"1874\">Floor 40<\/strong>: $602.50 \u00d7 10,000 = $6,025,000<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"2031\" data-end=\"2078\"><strong data-start=\"2034\" data-end=\"2076\">Price Disparity between Floors<\/strong><\/h3>\n<p style=\"padding-left: 40px;\" data-start=\"2080\" data-end=\"2101\"><strong data-start=\"2084\" data-end=\"2099\">Calculation<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><em><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">Price Disparity = Total Cost (Floor 40) \u2212 Total Cost (Floor 1)<\/span><\/span><\/span><\/em><\/p>\n<p style=\"padding-left: 40px;\"><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">6,025,000 \u2212 3,300,000 = <strong>$2,725,000 per floor<\/strong><\/span><\/span><\/span><\/p>\n<h3 data-start=\"2329\" data-end=\"2383\"><strong data-start=\"2332\" data-end=\"2381\">Total Price Disparity in the Building<\/strong><\/h3>\n<p style=\"padding-left: 40px;\" data-start=\"2385\" data-end=\"2406\"><strong data-start=\"2389\" data-end=\"2404\">Calculation<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">Total Disparity = Price Disparity per Floor \u00d7 40<\/span><\/span><\/span><\/em><\/li>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">2,725,000 \u00d7 40 = <strong>$109,000,000<\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"2599\" data-end=\"2649\"><strong data-start=\"2602\" data-end=\"2647\">Economic Inequality per Household<\/strong><\/h3>\n<p style=\"padding-left: 40px;\" data-start=\"2651\" data-end=\"2672\"><strong data-start=\"2655\" data-end=\"2670\">Assumptions<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"2673\" data-end=\"2754\">\n<li data-start=\"2673\" data-end=\"2754\"><strong data-start=\"2675\" data-end=\"2693\">400 households<\/strong> in the building (<strong data-start=\"2711\" data-end=\"2750\">40 floors \u00d7 10 households per floor<\/strong>).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\" data-start=\"2756\" data-end=\"2777\"><strong data-start=\"2760\" data-end=\"2775\">Calculation<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">Economic Inequality per Household = Total Disparity\/Number of Households<\/span><\/span><\/span><\/em><\/li>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">109,000,000 \u00f7 400 = <strong>$272,500 per household<\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"3027\" data-end=\"3069\"><strong data-start=\"3030\" data-end=\"3067\">Social Cost of Inequality<\/strong><\/h3>\n<p style=\"padding-left: 40px;\" data-start=\"3071\" data-end=\"3092\"><strong data-start=\"3075\" data-end=\"3090\">Assumptions<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"3093\" data-end=\"3146\">\n<li data-start=\"3093\" data-end=\"3146\"><strong data-start=\"3095\" data-end=\"3110\">Social cost<\/strong> is <strong data-start=\"3114\" data-end=\"3143\">15% of economic disparity<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\" data-start=\"3148\" data-end=\"3169\"><strong data-start=\"3152\" data-end=\"3167\">Calculation<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">272,500 \u00d7 0.15 = <strong>$40,875 per household <\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-html\" aria-hidden=\"true\"><span class=\"base\"><span class=\"mord text\"><span class=\"mord\">Total Social Cost<\/span><\/span><\/span><\/span><\/span><\/span><\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-html\" aria-hidden=\"true\"><span class=\"base\"><span class=\"mord\">40<\/span><span class=\"mpunct\">,<\/span><span class=\"mord\">875 <\/span><span class=\"mbin\">\u00d7 <\/span><\/span><span class=\"base\"><span class=\"mord\">400 <\/span><span class=\"mrel\">= <strong>$<\/strong><\/span><\/span><strong><span class=\"base\"><span class=\"mord\">16<\/span><span class=\"mpunct\">,<\/span><span class=\"mord\">350<\/span><span class=\"mpunct\">,<\/span><span class=\"mord\">000<\/span><\/span><\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"3365\" data-end=\"3406\"><strong data-start=\"3368\" data-end=\"3404\">REFINING THE CALCULATION<\/strong><\/h3>\n<p style=\"padding-left: 40px;\"><em>Additional Costs Per Household<\/em><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul data-start=\"3449\" data-end=\"3561\">\n<li data-start=\"3449\" data-end=\"3483\"><strong data-start=\"3451\" data-end=\"3469\">Health Impacts<\/strong>: <strong data-start=\"3471\" data-end=\"3481\">$5,000<\/strong><\/li>\n<li data-start=\"3484\" data-end=\"3523\"><strong data-start=\"3486\" data-end=\"3509\">Environmental Costs<\/strong>: <strong data-start=\"3511\" data-end=\"3521\">$2,000<\/strong><\/li>\n<li data-start=\"3524\" data-end=\"3561\"><strong data-start=\"3526\" data-end=\"3547\">Opportunity Costs<\/strong>: <strong data-start=\"3549\" data-end=\"3559\">$3,000<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><em>Revised Social Cost per Household<\/em><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">40,875 + 5,000 + 2,000 + 3,000 = <strong>$50,875 per household<\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong><em>Revised Total Social Cost<\/em><\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-html\" aria-hidden=\"true\"><span class=\"base\"><span class=\"mord\">50<\/span><span class=\"mpunct\">,<\/span><span class=\"mord\">875 <\/span><span class=\"mbin\">\u00d7 <\/span><\/span><span class=\"base\"><span class=\"mord\">400 <\/span><span class=\"mrel\">= <strong>$<\/strong><\/span><\/span><strong><span class=\"base\"><span class=\"mord\">20<\/span><span class=\"mpunct\">,<\/span><span class=\"mord\">350<\/span><span class=\"mpunct\">,<\/span><span class=\"mord\">000<\/span><\/span><\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 class=\"p1\">EVERYDAY COMPARISON<\/h3>\n<ul>\n<li class=\"p1\"><strong>Cost of Building a School<\/strong>: Equivalent to building <em>1 new elementary school<\/em> ($20 million).<\/li>\n<li class=\"p1\"><strong>Healthcare Costs<\/strong>: Covers hospital stays for <em>2,907 patients<\/em> (20,350,000 \u00f7 7,000).<\/li>\n<li class=\"p1\"><strong>Affordable Housing Units<\/strong>: Funds <em>81 affordable housing units<\/em> (20,350,000 \u00f7 250,000).<\/li>\n<li class=\"p1\"><strong>Public Transit Investment<\/strong>: Equivalent to <em>1 new subway train<\/em> ($20 million).<\/li>\n<li class=\"p1\"><strong>Annual Salaries for Teachers<\/strong>: Pays <em>291 teachers<\/em> for one year (20,350,000 \u00f7 70,000).<\/li>\n<li class=\"p1\"><strong>Grocery Costs for Families<\/strong>: Covers groceries for <em>1,696 families<\/em> (20,350,000 \u00f7 12,000).<\/li>\n<li class=\"p1\"><strong>Climate Action Initiatives<\/strong>: Funds planting <em>40,700 trees<\/em> (20,350,000 \u00f7 500).<\/li>\n<li class=\"p1\"><strong>Small Business Support<\/strong>: Provides startup funding for <em>407 small businesses<\/em> (20,350,000 \u00f7 50,000).<\/li>\n<li class=\"p1\"><strong>Childcare Subsidies<\/strong>: Subsidizes childcare for <em>2,035 children<\/em> (20,350,000 \u00f7 10,000).<\/li>\n<li class=\"p1\"><strong>Sports and Recreation Facilities<\/strong>: Equivalent to building <em>1 community sports complex<\/em> ($20 million).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3 class=\"p1\"><span class=\"s1\"><b>BUILDING (6-STOREY)<\/b><\/span><\/h3>\n<p><span class=\"s1\"><strong>BUILDING ASSUMPTION OVERVIEW:<\/strong><b> <\/b><\/span><span class=\"s1\">Wood-framed 6-story residential building on a site <em>without<\/em> existing buildings or tenant relocations.&nbsp;<\/span><\/p>\n<p><strong>ASSUMPTIONS<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Construction cost<\/em>: $245\/sqft (base cost for the first floor) via <a href=\"https:\/\/addyinvest.ca\/2023\/03\/17\/altus-2023-canadian-cost-guide\/\"><em style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\">Canadian Costs Guide 2023<\/em><\/a><span style=\"background-color: rgb(255 255 255\/var(--tw-bg-opacity)); color: var(--tw-prose-body); font-size: 1rem;\"> by Altus Group.<\/span><\/li>\n<li><em>Price increases<\/em>: 3% per floor for floors 1-6.<\/li>\n<li><em>Floor area<\/em>: 10,000 sqft per floor (same as before).<\/li>\n<li><em>Households<\/em>: 10 per floor, totaling 60 households (6 floors \u00d7 10 households).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Price per Square Foot for Each Floor<\/h3>\n<p style=\"padding-left: 40px;\"><strong>Assumptions<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Base construction cost: $245\/sqft (Floor 1).<\/li>\n<li>Price increases: 3% per floor for floors 1-6.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Formula:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Price per sqft (Floor n)=Price per sq.ft&nbsp; (Floor n\u22121)\u00d7(1+0.03)<\/em><\/li>\n<li><strong>Calculations<\/strong>:<br \/>\nFloor 1: $245\/sqft.<\/li>\n<li>Floor 2: 245\u00d71.03=252.35\/sqft.<\/li>\n<li>Floor 3: 252.35\u00d71.03=259.92\/sqft.<\/li>\n<li>Floor 4: 259.92\u00d71.03=267.72\/sqft.<\/li>\n<li>Floor 5: 267.72\u00d71.03=275.75\/sqft.<\/li>\n<li>Floor 6: 275.75\u00d71.03=284.02\/sqft.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Total Cost per Floor<\/h3>\n<p><strong>Assumptions<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Each floor has 10,000 sqft of residential space.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Formula<\/strong>:<\/p>\n<ul>\n<li><em>Total Cost (Floor n)=Price per sqft (Floor n)\u00d710,000<\/em><\/li>\n<\/ul>\n<p><strong>Calculations<\/strong>:<\/p>\n<ul>\n<li>Floor 1: 245\u00d710,000=2,450,000.<\/li>\n<li>Floor 2: 252.35\u00d710,000=2,523,500.<\/li>\n<li>Floor 3: 259.92\u00d710,000=2,599,200.<\/li>\n<li>Floor 4: 267.72\u00d710,000=2,677,200.<\/li>\n<li>Floor 5: 275.75\u00d710,000=2,757,500.<\/li>\n<li>Floor 6: 284.02\u00d710,000=2,840,200.<\/li>\n<\/ul>\n<h3>Price Disparity Between Floors<\/h3>\n<p>Calculation:<\/p>\n<p>Price Disparity: 2,840,200 (Floor 6) \u2212 2,450,000 (Floor 1) = <strong>$390,200 per floor<\/strong>.<\/p>\n<h3>Total Price Disparity in the Building<\/h3>\n<p style=\"padding-left: 40px;\"><strong>Calculation &#8211; Total Disparity<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>390,200 \u00d7 6 floors = <strong>$2,341,200<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Economic Inequality per Household<\/h3>\n<p style=\"padding-left: 40px;\"><strong>Assumptions<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>60 households in the building (6 floors \u00d7 10 households per floor).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Calculation<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>2,341,200 \u00f7 60 = <strong>$39,020 per household<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Social Cost of Inequality<\/h3>\n<p><strong>Assumptions<\/strong>:<\/p>\n<ul>\n<li><strong data-start=\"3095\" data-end=\"3110\">Social cost<\/strong> is <strong data-start=\"3114\" data-end=\"3143\">15% of economic disparity<\/strong>.<\/li>\n<\/ul>\n<p><strong>Calculation<\/strong>:<\/p>\n<ul>\n<li>Social Cost per Household: 39,020 \u00d7 0.15 = <strong>$5,853 per household<\/strong>.<\/li>\n<\/ul>\n<p><strong>Total Social Cost:<\/strong><\/p>\n<ul>\n<li>5,853 \u00d7 60 = <strong>$351,180<\/strong>.<\/li>\n<\/ul>\n<p><strong>Calculation Refinement<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Additional Costs:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Health Impacts: $5,000 per household.<\/li>\n<li>Environmental Costs: $2,000 per household.<\/li>\n<li>Opportunity Costs: $3,000 per household.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Revised Social Cost per Household<\/strong>:<\/p>\n<p style=\"padding-left: 40px;\"><em>Revised Social Cost per Household<\/em><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-mathml\">5,853 + 5,000 + 2,000 + 3,000 = <strong>$15,853<\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong><em>Revised Total Social Cost<\/em><\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span class=\"katex-display\"><span class=\"katex\"><span class=\"katex-html\" aria-hidden=\"true\"><span class=\"base\"><span class=\"mord\">15,853 <\/span><span class=\"mbin\">\u00d7 <\/span><\/span><span class=\"base\"><span class=\"mord\">60 <\/span><span class=\"mrel\">= <strong>$951,180<\/strong><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Vancouver Median Household Income and Affordable Homes<\/h3>\n<p style=\"padding-left: 40px;\">As of the 2021 Census, the median household income in Vancouver, British Columbia, was $82,000 before taxes and $72,000 after taxes. \u200b<\/p>\n<p style=\"padding-left: 40px;\">Housing affordability is typically assessed using two key ratios:&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Gross Debt Service (GDS) Ratio<\/strong>: This is the percentage of your gross monthly income that covers housing costs, including mortgage payments, property taxes, heating, and 50% of condominium fees (if applicable). Lenders generally prefer this ratio to be at or below 35%. \u200b<\/li>\n<li><strong>Total Debt Service (TDS) Ratio<\/strong>: This ratio represents the percentage of your gross monthly income required to cover all debts, including housing costs and other obligations like car loans and credit card payments. Lenders typically prefer this ratio to be at or below 42%. \u200b<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Assumptions for Calculation<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Gross Annual Household Income<\/em>: $82,000\u200b<\/li>\n<li><em>Down Payment<\/em>: 20% of the home&#8217;s purchase price\u200b<\/li>\n<li><em>Mortgage Interest Rate<\/em>: 5.87% (average rate as of March 2025) \u200b<\/li>\n<li><em>Amortization Period<\/em>: 25 years\u200b<\/li>\n<li><em>Property Taxes<\/em>: 1% of the home&#8217;s purchase price\u200b<\/li>\n<li><em>Heating Costs<\/em>: $150 per month\u200b<\/li>\n<li><em>No Other Debt Obligations<\/em>: Assuming the household has no additional monthly debt payments\u200b<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Calculations<\/strong>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Monthly Gross Income: $82,000 \u00f7 12 months = $6,833\u200b<\/li>\n<li>Maximum GDS Allowable: 35% of $6,833 = $2,392\u200b<\/li>\n<li>Estimated Monthly Non-Mortgage Housing Costs:<\/li>\n<li>Property Taxes: 1% of the home&#8217;s price \u00f7 12\u200b<br \/>\nHeating Costs: $150\u200b<br \/>\nTotal Non-Mortgage Costs: (0.01 \u00d7 Home Price \u00f7 12) + $150\u200b<\/li>\n<li>Available for Mortgage Payment: $2,392 &#8211; Non-Mortgage Costs\u200b<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Mortgage Calculator<\/strong>: Inputting the available mortgage payment, interest rate, and amortization period will yield the maximum mortgage amount. Adding the down payment will provide the maximum affordable home price.\u200b<\/p>\n<p><strong>For a home price of $400,000:\u200b<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Down Payment<\/em>: 20% of $400,000 = $80,000\u200b<\/li>\n<li><em>Mortgage Amount<\/em>: $400,000 &#8211; $80,000 = $320,000\u200b<\/li>\n<li><em>Monthly Mortgage Payment<\/em>: Approximately $2,027\u200b<\/li>\n<li><em>Property Taxes<\/em>: 1% of $400,000 = $4,000 annually; $4,000 \u00f7 12 = $333 per month\u200b<\/li>\n<li><em>Total Monthly Housing Costs<\/em>: $2,027 + $333 + $150 = $2,510\u200b<\/li>\n<li><em>GDS Ratio<\/em>: $2,510 \u00f7 $6,833 \u2248 37%\u200b<\/li>\n<li>This GDS ratio is closer to the preferred 35% but still slightly above.\u200b<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong>:<\/p>\n<p style=\"padding-left: 40px;\">Given the assumptions and current interest rates, a household with <strong>Vancouver&#8217;s median income of $82,000 may afford a home priced between $350,000 and $400,000<\/strong>, provided they make a 20% down payment and have minimal additional debts. Therefore, the average Vancouver household can afford units between between the 1st and 8th level of a 40-storey high rise, based on the construction costs outlined above. Note, however, that actual affordability can vary based on individual circumstances, interest rates, and housing market conditions.<\/p>\n<p>***<\/p>\n<p><em>Other articles in the <strong>Rising High, Falling Short<\/strong> series:<\/em><\/p>\n<ul>\n<li><a href=\"https:\/\/spacing.ca\/vancouver\/2025\/02\/03\/rising-high-falling-short-introduction\/\">Rising High, Falling Short: Introduction<\/a>&nbsp;<\/li>\n<li><a href=\"https:\/\/spacing.ca\/vancouver\/2025\/02\/05\/rising-high-falling-short-construction-related-carbon-emissions\/\">Rising High, Falling Short: Construction-Related Carbon Emissions<\/a><\/li>\n<\/ul>\n<p>**<\/p>\n<p><span class=\"s1\"><b><i>Erick Villagomez<\/i><\/b><i> is the Editor-in-Chief at Spacing Vancouver and teaches at UBC\u2019s School of Community and Regional Planning. He is also the author of <\/i><a href=\"https:\/\/pressbooks.bccampus.ca\/settlement\/\">The Laws of Settlements: 54 Laws Underlying Settlements Across Scale and Culture<\/a><i>.<\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Metrics Summary Building: A 40-story residential building constructed of a reinforced concrete frame with a curtain wall facade on a site without underground parking, existing buildings, or tenant relocations. The calculations use construction costs alone as a reference point (via the&nbsp;Canadian Costs Guide 2023 by Altus Group). Other costs including land costs, development profit,<a href=\"https:\/\/spacing.ca\/vancouver\/2025\/03\/10\/rising-high-falling-short-social-and-economic-division\/\">Continue reading <span class=\"sr-only\">&#8220;Rising High, Falling Short: Social and Economic Division&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6004,"featured_media":37909,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"_ef_editorial_meta_paragraph_assignment":"","_ef_editorial_meta_date_first-draft-date":"","_ef_editorial_meta_checkbox_needs-photo":"","_ef_editorial_meta_number_word-count":"","footnotes":""},"categories":[10,11230,11232,6670,11235],"tags":[],"class_list":["post-37862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-architecture","category-community","category-features","category-politics","category-urban-design"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rising High, Falling Short: Social and Economic Division - Spacing Vancouver<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/spacing.ca\/vancouver\/2025\/03\/10\/rising-high-falling-short-social-and-economic-division\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rising High, Falling Short: Social and Economic Division - Spacing Vancouver\" \/>\n<meta property=\"og:description\" content=\"Key Metrics Summary Building: A 40-story residential building constructed of a reinforced concrete frame with a curtain wall facade on a site without underground parking, existing buildings, or tenant relocations. 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