CMHC reports large multis were up 9.8% year-to-date from 2,659 to 2,922 units in Greater Victoria. Total housing starts from January to October 2022 were 3,918 – up 2.4% from last year’s 3,825.
New single detached homes are down from 730 to 598 and “missing middle” such as townhomes are down 8.7% from 436 in 2021 to 398 this year. Missing middle housing is considered more suitable and affordable for young families.
During this time of rising interest rates, supply chain challenges and rising costs, large multi projects such as condos can take advantage of economy of scale, however it has been reported that even these large developers may be putting projects on hold due to eroding market conditions such as the rising mortgage stress test.
New, missing middle housing continues to be missing in Saanich, Central Saanich, Oak Bay, North Saanich, Metchosin, Highlands. The development approval process and costs for a small subdivision are similar to a large multi-family project, so municipalities actually discourage small projects suitable for families.
Despite the lack of missing middle housing, Saanich council is considering adding up to $21,500 to the cost of a new townhome. The most recent report will come before council on November 21, 2022. The municipality is the slowest in the region for approvals and appears oblivious to the rising costs of construction and mortgages.
Ontario has taken the lead to address housing supply shortages by overriding municipal zoning for small projects. This will assist with speeding up approvals and addressing some rising costs.
BC Premier David Eby has suggested some action may be forthcoming in BC, however there has been nothing to date.