Greater Victoria has the highest proportion of major projects under construction in the province, which helped insulate the region from the economic downturn in 2020
VICTORIA – According to BC Check-Up: Invest, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on investment trends across the province, the number of housing units that began construction across Greater Victoria increased by 49.9 per cent in 2021, compared to the number started in 2020.
“In total, there were 1,600 more housing units started in 2021 compared to 2020,” said Lindalee Brougham, FCPA, FCA, President of LL Brougham Inc. “Prices and demand for residential units rapidly escalated over the past year and half in the region, and developers seized the investment opportunity with the highest number of housing starts on record.”
In total, 4,809 units began construction in Greater Victoria throughout 2021, up from the 3,209 units started in 2020. The previous record for the region was 4,273 in 2018.
Both the number of detached and attached units, such as condos, townhomes, and apartments, were up considerably. In 2021, 3,815 attached units began construction, up 58.6 per cent compared to in 2020. Detached starts reached 994 in 2021, an increase of 23.6 per cent compared to 2020.
“In 2020, the COVID-19 pandemic caused a decline in housing starts in Greater Victoria, but that was very short-lived. Given the lack of affordable housing in the city and surrounding areas, this increase in housing supply is critical,” noted Brougham. “Ongoing major project activity was also robust in 2021.”
The estimated value of all major projects in Greater Victoria, those with a cost of over $15,000,000, was $13.9 billion in Q3 2021, down from $14.5 billion in Q3 2020. This decline was due to the $765 million Core Area Wastewater Management Project completing construction at the start of 2021.
As of Q3 2021, 34 projects worth $9.9 billion were under construction, almost three-quarters of the total projects in the region. As of Q3 2021, there were 51 project proposals with an estimated capital cost of $3.1 billion.
“Greater Victoria has the highest proportion of major projects under construction in the province, which helped insulate the region from the economic downturn in 2020. The considerable investment underway and expected in the short-term will improve housing supply, better connect our community, and improve services available to residents,” concluded Brougham. “Going forward, it will also be important to foster an environment that attracts more investment.”
To learn more, see www.bccheckup.com.
