Large Projects Propel Housing to New Record

In 2023, Greater Victoria posted one of the highest numbers of housing starts on record since 1972. (However, read the last paragraph on this page.)

CMHC reports total housing starts in Greater Victoria increased 4% in 2023 (4,992) vs 2022 (4,787). Large multi-family condos/apts are up 17% at 4,238 units, however, single detached homes are down 43% (385 units) and missing middle (townhomes, duplexes) are down 23% (369 units). Much of the decline is the result of higher interest rates undermining affordability in moderate housing that is more costly to build, and must command a higher price than large multi-family. In addition, municipalities continue to boost fees and regulatory costs regardless of high mortgage rates and prices. The high costs of development mean builders need economy of scale, resulting in more large multis and fewer single detached and townhomes, suitable for young families.

The City of Victoria’s housing starts are down 44% from 1,727 in 2022 to 964, while Langford is up from 1,254 to 1,406. Also way up is Central Saanich from a paltry 39 in 2022 to 300, as well as View Royal from 188 to 438, mostly due to large multi-family construction. There were only 2 semi-detached (missing middle) units in Central Saanich and 5 in View Royal. The region’s largest municipality Saanich is also clawing its way back from only 338 in 2022 to 555, again mostly due to large multi-family construction. They are still down from the 625 homes posted in 2017. Their approval processes continue to be some of the most challenging and costly in the region.

Sooke has completely tanked with a 53% decline in housing starts from 241 in 2022 to 114 in 2023. Sooke seems to have mostly abandoned inspections leaving builders high and dry. The municipality appears to be an administrative nightmare and council seems oblivious to the problems. Municipalities, other than Sooke and Victoria posting fewer starts than last year are North Saanich (23 vs 27) and Sidney (55 vs 71).

The BC government recently announced mandatory rezonings and housing targets for some municipalities, however they also increased Development Cost Charges by including police & fire stations, sold waste treatment facilities and highways in addition to the already covered sewer and water, sidewalks, parks, etc. Previously negotiated Community Amenity Contributions were legalized like DCCs, and this will also add costs to housing. The CRD plans to add water charges of $9,045 per new single family home and $7,914 for townhomes, duplexes etc of which there is already a shortage. More charges will be applied to large multi-family projects. There needs to be a cap on rising fees and regulations.   

There was zero new missing middle housing in Metchosin, Highlands, North Saanich and Oak Bay. These municipalities are exactly why the BC government stepped in to rezone single detached lots to include townhomes, duplexes, etc.

• Even though 4,992 is a record number, it’s not a record relative to our population growth. Victoria’s population in 1972 was 192,000 with record high housing starts of 4,192. In 2023 Victoria’s population is about 400,000 with record housing starts of 4,992. Relative to the different populations, that’s still a decline of 43% in 2023 vs 1972.