If you’ve noticed more duplexes and multi-unit homes appearing in neighbourhoods that were once made up primarily of single-family houses, you’re not imagining it.

Across many communities in South Surrey, and White Rock, the way properties are being developed is changing — and there are a few key reasons why.

The Economics of Building Have Shifted

Just a few years ago, it was common for developers to purchase an older home on a large lot, tear it down, and build a new single-family house.

But the numbers no longer work the way they once did.

Let’s look at a simplified example.

Imagine a developer purchased a property in 2023 for $1.5 million.

If they built a 3,100 sq. ft. home with a secondary suite at a basic builder-grade cost of about $350 per square foot, construction alone would cost approximately:

3,100 sq ft × $350 = $1,085,000

That brings the total investment to roughly:

$1,500,000 (land)
+ $1,085,000 (construction)
= $2,585,000

And that’s before factoring in additional costs such as:

• Financing and interest

• Demolition

• Permits and development fees

• Landscaping and servicing

• Realtor commissions and marketing

Yet many similar homes in 2026 are selling for around $2,150,000.

In this scenario, the developer would be facing a significant loss.

When the numbers don’t work, builders adjust — and that’s exactly what we’re seeing happen.

One Lot Is Now Becoming Four Homes

Instead of building one large home, many developers are now purchasing the same 7,000–8,000 sq. ft. lots and redeveloping them differently.

Under newer housing policies, a single lot can often accommodate up to four homes, such as:

• A duplex (two principal homes), plus

• Two detached garden suites

• A duplex (two principal homes), plus suites

That means where one family home once stood, there can now be four separate residences.

From a development perspective, this allows the builder to distribute costs across multiple homes, making the project financially viable again.

Provincial Legislation Is Encouraging This Change

Another major factor behind this shift is new housing legislation from the Province of British Columbia.

In late 2023, the province introduced Small-Scale Multi-Unit Housing (SSMUH) legislation designed to increase housing supply in established neighbourhoods.

Municipalities were required to update their zoning bylaws to allow more housing options on single-family lots, and many — including the City of Surrey and City of White Rock — implemented these changes in July 2024.

Depending on the location of the property, the new rules allow:

• Up to four units on most single-family lots, or

• Up to six units on lots located within designated Frequent Bus Stop Areas

These changes are intended to gently increase density without requiring large condominium buildings in established neighbourhoods.

What This Means for Homeowners

For homeowners, these changes can raise a lot of questions:

• Will my neighbour’s property be redeveloped?

• What can actually be built on nearby lots?

• Does this increase the value of my property?

The answer depends on several factors, including:

• Lot size and zoning

• Proximity to transit

• Setbacks and height limits

• Parking and servicing requirements

While the rules allow more housing options, not every property will be redeveloped, and any project must still go through a detailed approval process.

A Changing Neighbourhood Landscape

The character of many neighbourhoods will continue to evolve over the coming years.

What we are seeing is not necessarily high-density development, but rather a gradual shift toward “missing middle” housing — duplexes, garden suites, and small multi-unit homes that fit within existing communities.

For many municipalities, this is one way to address housing shortages while still maintaining the overall feel of residential neighbourhoods.

As someone who works closely with homeowners throughout South Surrey and White Rock, I’m often asked what these new housing rules mean for individual properties and neighbourhoods.

Every lot is different, and factors like zoning, transit proximity, servicing, and setbacks all play a role in what can actually be built.

If you’re ever curious about what could potentially be developed on your property or nearby lots, I’m always happy to help review the possibilities.