According to CMHC, there has been a 21% increase in Greater Victoria housing starts from January to April with 1,422 units this year vs 1,179 in 2023. Most of the increase is in the West Shore’s Langford (785) and Colwood (318). There are zero new homes in Central Saanich, Highlands, Metchosin, only 2 in North Saanich, 7 in Oak Bay, 9 in Esquimalt, and 10 in Sidney.
The City of Victoria has 16 new homes, a 93.5% decline vs last year. This underlines the absurdity of the claim that occupancy permits over the past 6 months are driven by housing targets established Sept 30, 2023. As we said to CHEK News “Those numbers are not really indicative of anything…What you want to pay attention to, is CMHC housing starts…the province is handing out housing kudos for work that’s been in the pipeline months or years before the housing targets were established in September.”
The housing starts may improve in the next couple of months because the municipality is the home of large multis and one project can boost their numbers significantly. However, it also represents the cost of doing business in Victoria, which many builders avoid due to excessive regulations and fees. Significant financing and economy of scale and must be achieved to address all of the costs.
In addition, the province’s new legislation starting July 1 is intended to address the lack of missing middle housing (townhomes, etc.) So far this year, Langford (71) and Colwood (37) are posting significant numbers. There are 10 in Sooke, but zero in Central Saanich, Esquimalt, Highlands, Metchosin, North Saanich, Oak Bay, View Royal. Only 3 in Victoria, 5 in Sidney, and 6 in Saanich.
It appears some municipalities are ratcheting up regulations and fees to obstruct the province’s legislation enabling 4 to 6 units on single family lots. Oak Bay is banning gas on-demand hot water (including carbon-neutral RNG) which is more affordable and suitable for townhomes. Saanich, Victoria and others are doing the same. Other issues range from calculating floor area to include exterior siding in Saanich to requiring additional permit approvals for soil removal in Central Saanich, despite having a building permit obviously requiring an excavation. There is a disconnect at all government levels regarding the ongoing layering of regulations and fees on new housing, putting housing further out of reach for young families.
In addition, the BC government announced a new program called BC Builds, however these programs are ineffective at addressing market housing supply and affordability for the general population.