Vancouver Per-Unit Construction Cost: Triplex to Sixplex
How construction costs scale from 3 to 6 units, where economies of scale kick in, and the per-unit pricing builders should model.
Per-unit cost by unit count
3-Unit
~3,600 sqft
$1.3-1.5M
per unit total cost
4-Unit
~5,200 sqft
$1.2-1.4M
per unit total cost
5-Unit
~6,500 sqft
$1.1-1.3M
per unit total cost
6-Unit
~7,800 sqft
$1.0-1.2M
per unit total cost
How economies of scale work
The math is straightforward: fixed costs stay constant while variable costs increase sub-linearly. Here is what stays fixed regardless of unit count:
- Land cost: The same lot whether you build 3 or 6 units
- Site prep and demolition: $30-60K regardless of unit count
- Base architecture and engineering: $80-120K -- marginal cost per additional unit is small
- Permit fees (base): DP fees are per-project, not per-unit
- Utility connections: Core infrastructure cost is similar for 3-6 units
Variable costs that increase with unit count -- framing, MEP, finishes -- grow at roughly 70-80% of the rate of unit count. Adding a fourth unit does not cost as much as the first three averaged, because shared walls, common mechanical systems, and bulk material purchasing create efficiencies.
When to target more units
Building more units is not always better. Consider the trade-offs: 6-unit projects require lots in Frequent Transit Network areas, larger lot sizes, and more complex financing. The design must accommodate smaller individual units which may sell at a per-sqft premium but lower absolute price. For most Vancouver lots, 4 units represents the sweet spot between economies of scale and project complexity.
Run the proforma on your specific lot to determine the optimal unit count given lot dimensions, zoning, and local sale comparables.
FAQs
What is the per-unit cost by unit count?
$1.3-1.5M/unit for 3 units, declining to $1.0-1.2M/unit for 6 units as fixed costs spread across more units.
How do economies of scale work?
Fixed costs (land, design, permits, site prep) stay constant. Variable costs grow at 70-80% of the unit count rate due to shared walls and bulk purchasing.
Is a sixplex more profitable than a fourplex?
Generally yes -- ROI per dollar invested is 15-25% higher. But sixplexes require transit-adjacent lots and more complex financing.