CMHC reports housing starts in Greater Victoria are down 11% year-to-date January to May 2023 at 1,312 units vs 1,480 units in 2022. However, April 2023 starts were only 91, while May 2023 posted 133, a 46% increase. Month to month numbers can be skewed by one or two large projects so VRBA focuses on year-to-date.
Year-to-date, large multi-family condos/apts are up 6% this year at 1,032 units, however, single detached homes are down 40% (176 units) and missing middle (townhomes, duplexes) are down 39% (104 units). Much of the decline would be the result of higher interest rates undermining affordability in housing that is more costly to build, and must command a higher price. In addition, municipalities continue to boost fees and regulatory costs.
For example, Saanich is considering requiring $9,600 to $33,000 in CAC’s (Community Amenity Contributions) from each new townhome depending on location and number of units. These costs continue to boost housing prices in the most expensive province for housing in Canada. While the BC government has promised easier rezonings, they have not put a cap on municipal fees which can also obstruct new housing.
The Vancouver Sun did a story on Saanich’s slow, costly and obstructive approach to housing that has existed for years. The mayor says “I think Saanich has had a well-earned reputation in the past for being slow in its processes…There’s a clear gap in terms of multi-family units like duplexes, multiplexes, townhouses, and affordable non-market rental. And we certainly have some work to do to ensure that we are moving in the direction that will create that housing type.” We will see if the housing start numbers reflect improvement. A start would be to axe the planned CAC charges.
Langford leads in housing starts with 645 new homes, followed by Victoria at 247 and Esquimalt at 168. Interestingly, there were zero new homes started in Victoria in May, which is very unusual, reflecting anomalies in monthly statistics. More concerning is Sidney with zero new homes year-to-date. Saanich has declined 75%, and there is zero new missing middle housing in Central Saanich, Metchosin, Highlands, North Saanich, Oak Bay, Victoria, and View Royal.
Sooke’s housing starts have dropped 55% from 123 in 2022 to 55 in 2023. Sooke has become the new Saanich – costly and obstructive. A recent organizational review reveals significant administrative challenges.
The big question so far this year is – what is going on in Sidney with the new council and zero housing starts?