CRD Housing Up 6% While Sidney Achieves Record Lows

CMHC reports housing starts in Greater Victoria are up 6% from January to June 2023 at 1,814 units vs 1,713 in 2022. Year-to-date, large multi-family condos/apts are up 33% this year at 1,500 units, however, single detached homes are down 41% (201 units) and missing middle (townhomes, duplexes) are down 53% (113 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 council added the following community amenity fees: between 7 and 349 units will be charged $2,000 per unit for condominium developments in mixed-use projects, $2,880 per unit in residential projects and $3,840 per unit in townhouse projects. 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.”  

Langford leads in housing starts with 765 new homes, followed by Victoria at 373 and Esquimalt at 168. Despite Victoria’s new “missing middle” zoning launched in January, there have been zero new townhomes, duplexes started this year. There are concerns about high costs and regulatory challenges typical of Victoria’s development processes.

New housing in Saanich has declined 39% vs the same period last year, 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 65% from 176 in 2022 to 62 in 2023. Sooke has become the new Saanich – costly and obstructive. A recent organizational review reveals significant administrative challenges.

Similar is Sidney with an astounding zero housing starts of any kind this year. In 2020 there were 128 new homes and 85 in 2021 during the pandemic. Reports are the new Sidney council and their administration are also costly & obstructive – the numbers (and lack thereof) appear to reflect this. They are achieving record lows.