Langford, Esquimalt Lead New Housing

CMHC reports housing starts in Greater Victoria declined 15% January to July 2023 at 2,273 units vs 2,681 in 2022. Year-to-date, large multi-family condos/apts are down 5% this year at 1,858 units, however, single detached homes are down 48% (232 units) and missing middle (townhomes, duplexes) are down 33% (183 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 and regulations 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.”

The Globe and Mail singled out the City of Victoria for creating a new policy to boost new missing middle housing. They said, “the city then piled on numerous rules, including building height, parking and added costs. It’s akin to opening a door and immediately bolting it shut. The result is a policy that was supposed to help get many new homes built led to development applications of zero new homes.” 

Langford leads in housing starts with 789 new homes, followed by Esquimalt at 438 and Victoria at 376. This time last year, Victoria’s starts were 1,219 resulting this year in a 69% decline.

New housing in Saanich has declined 33% 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 180 in 2022 to 65 in 2023. Sooke has become the new Saanich – costly and obstructive. A recent organizational review reveals significant administrative challenges.

On a bright note, Sidney has finally posted 36 starts after zero in the first six months. 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.