Victoria Housing Starts Down 62% – Zero Missing Middle

CMHC reports housing starts in Greater Victoria declined 5% January to September from 3,314 in 2022 to 3,153 units in 2023. Year-to-date, large multi-family condos/apts are up 10% this year at 2,639 units, however, single detached homes are down 47% (295 units) and missing middle (townhomes, duplexes) are down 45% (219 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 regardless of high mortgage rates and prices. Some municipalities such as Saanich and Victoria are banning on-demand RNG hot water, which takes up less space and costs less to operate than an electric tank. The on-demand units are especially useful in townhomes due to space considerations. There have been zero new townhomes built in Victoria this year and only 37 in Saanich, the largest municipality. By contrast, builders in Langford have built more than double that number (88).

Victoria also requires deconstruction of single detached homes costing tens of thousands of dollars, even though wood and other materials are banned from the Hartland Landfill and are being recycled. Saanich council added the following community amenity fees: projects with 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 fees cannot be not legally required, but create an expectation they must be paid by the developer to get projects approved.  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. They have done nothing to ban community amenity contributions, despite their own report “Opening Doors” recommending the practice should end.  

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 917 new homes, followed by Victoria at 549 and Esquimalt at 468. This time last year, Victoria’s starts were 1,450 resulting this year in a 62% decline.

There is zero new missing middle housing in Metchosin, Highlands, North Saanich, Oak Bay and Victoria. Central Saanich has 2 units and View Royal has 5 units.

Sooke’s housing starts have dropped 62% from 214 in 2022 to 81 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 43 starts after zero in the first six months. Reports are the new Sidney council and their administration are also costly & obstructive.