Encyclopedia
Density: floor space ratio (FSR) / floor area ratio (FAR)
Floor space ratio, the building's floor area divided by the site area. Zoning and plans set how much is allowed.
For example: A small owner learns their lot's allowed density changed under a new plan, which could affect its land value. (Illustration only, not a real deal.)
Official source: Local Government Act (BC Laws)
Example only, not a real client. Say a lot is zoned with a floor space ratio of two. On a 10,000 square foot lot, that allows about 20,000 square feet of building floor area. You use that to estimate what can be built and what the land is worth to a developer.
What I’d tell a friend
Know what density the zoning allows. Land value often depends on how much floor area can be built.
Why it matters to you
It tells you how much building the land can hold, which is a big part of what land is worth. Assumptions about density that don't hold up can sink a deal.
How to use it in your deal
Buyers should confirm the current zoning density and any higher density available through rezoning, the Official Community Plan (OCP), transit-oriented area rules or area plans like the Broadway Plan.
Check what counts toward floor area; some bylaws exclude parking, mechanical rooms, balconies or amenity space, which changes what can actually be built. Height limits, setbacks, view cones and site coverage can stop you from using all the density. Developers often value land per buildable square foot, so density drives price. Extra density may come with amenity contributions or cost charges.
Owners should know their site's potential before selling. Assessments may reflect density too. Get an architect to test a massing before paying for density you may not be able to use, and ask planning staff how they've treated similar sites nearby. Check the current zoning bylaw yourself, since density rules change often.
Mistakes I see
Assuming all density is buildable. Ignoring exclusions. Forgetting fees for extra density.
In BC and Vancouver
Zoning bylaws and OCPs under the Local Government Act set density.
Official sources: Local Government Act (BC Laws) · Transit-oriented areas (Government of BC) · Small-scale multi-unit housing (Government of BC)
What it means
Floor space ratio, or floor area ratio, is the total floor area of buildings divided by the area of the lot.
It is one of the main ways zoning controls building size.
What to check
Zoning bylaws define how floor area is counted, and some areas may be excluded.
Height, setbacks, parking and site shape can limit what is buildable below the maximum. An architect can test what fits before you buy.
Approved density versus hoped-for density
Floor space ratio (FSR), also called floor area ratio (FAR), is how much floor area you can build relative to the lot. Unused density can have option value, but it is not the same as approved, buildable density.
Do not pay today’s price for FSR you do not have yet. Rezoning in Metro Vancouver often takes well over a year and is not certain. Map each approval step and its timing risk before you set the land value.
Questions to ask before you sign
- What FSR applies now?
- What could rezoning allow?
- What's excluded from floor area?
- Can it actually fit on the site?
Keep reading
Related terms: Zoning bylaw, Land lift, Highest and best use
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.