CMHC reports housing starts in Greater Victoria are still up 2.5% year-to-date Jan to April 2023 at 1,179 units vs 1,150 units in 2022. However, April 2023 starts were only 91, while April 2022 posted 330 and March 2023 was 325. Housing starts suffered a big drop of 72% in April 2023 vs the same time last year.
Year-to-date, large multi-family condos/apts are up 32% this year at 975 units, however, single detached homes are down 47% (126 units) and missing middle (townhomes, duplexes) are down 55% (78 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 is considering requiring $9,600 to $33,000 in CAC’s (Community Amenity Contributions) from each new townhome depending on location and number of units. 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 which can also obstruct new housing.
Langford leads in housing starts with 570 new homes, followed by Victoria at 247 and Esquimalt at 166. Sidney has zero new homes built so far this year, Saanich has declined 80%, and there is zero new missing middle housing in Central Saanich, Metchosin, Highlands, North Saanich, Oak Bay, Victoria, and View Royal.
Many would be prime candidates for the new legislation planned by the province requiring missing middle housing.