Build or Buy in Ucluelet & Tofino? What Actually Makes Sense in 2025?

by Bryan Pudney

If you’ve been dreaming of living on the wild west coast of Vancouver Island, the question usually comes down to this:

Do you build your dream home from scratch, or buy something that already exists and fix it up?

Here in Ucluelet and Tofino, that decision is a little more complex than it might seem—especially with today’s construction costs, land prices, and market conditions.

Let’s break it down in real talk.

Building from Scratch: Is It Worth It?

There’s something magical about designing your own home. You get to pick everything—from the layout to the finishes to the perfect west-facing deck for sunset beers.

But here’s the catch: construction costs are sky-high right now. Between labor shortages, shipping materials out to the coast, and inflation, it’s not unusual for builds to come in at $400–$600 per square foot (and sometimes more).

So what does that mean in plain terms?

Let’s say you’re building a 2,000 sq ft house. That’s easily $800K–$1.2M in build costs before you even account for land, permits, landscaping, and the inevitable surprises.

Now compare that to the market value of homes once they’re done. In many cases, new builds in Ukee or Tofino don’t sell for much more than what they cost to build—especially if you’re not on the water or don’t have vacation rental income to support it. In some cases, people are actually into them for more than they’re worth.

So, does building make sense?

Yes if:

You already own land
You plan to live in the home long-term (not flip it)
You want a custom space and are OK with high upfront costs

Maybe not if:

You’re hoping to come out ahead financially
You want a quick move-in or don’t want to manage a multi-year build
You’re trying to keep your mortgage under control

Buying and Renovating: The Practical Path?

In places like Ucluelet especially, where the market has cooled a bit, buying an older home and renovating it is starting to look really smart.

Why?

You skip the long permitting and building timeline
You can often find homes priced below replacement cost
You get into the market sooner and can renovate in phases

Sure, you might need to deal with funky layouts or dated finishes. But you also might be able to update a place for less than half the cost of a new build—and still have equity left over when you’re done.

Renos aren’t always cheap, especially on the coast. Contractors are booked up, and anything custom or moisture-proofed takes time and money. But overall, you’re usually spending less than you would to build from scratch—and your property might actually appraise higher than what you put into it.

Some Things to Think About:

Land is scarce and expensive in both Tofino and Ucluelet—especially in Tofino. Even finding a decent lot can be a mission.
Permits take time, and environmental setbacks, septic rules, and zoning bylaws can slow things down.
Construction costs are high, and market values don’t always keep pace. You might build for $1.2M and have it appraise at $1.1M.
Buying existing gives you leverage—you can often negotiate price, renovate slowly, and actually gain value over time.

What’s Happening in the Market?

In Ucluelet, prices have dropped a bit, and there are more listings available. If you're patient, you might scoop a solid home that just needs a little love.
In Tofino, prices are still high, and vacant land is harder to come by. Building here tends to make the most sense only if you’re going ultra-custom or have long-term plans.

Bottom Line

If you’ve got deep pockets, a clear vision, and you’re building for the long haul—go for the custom build. There’s nothing quite like a home that fits you perfectly.

But if you’re trying to be smart with your money, get into the market sooner, or avoid construction stress—buying an existing home and renovating it is likely the better play right now. Especially in Ucluelet, where values are softer and there’s room to add value without overbuilding.

Thinking about doing either one?
I’d be happy to chat with you about available properties, land options, and what it actually costs to build out here today. I’ve seen both paths work—but one usually makes more sense depending on your goals.

Let’s find the right approach for you.