VRBA: GREATER VICTORIA HOUSING STARTS STILL UP 5%

CASEY EDGE

VICTORIA – Greater Victoria’s year-to-date housing starts are still up 5% according to CMHC.

While, housing starts increased from 150 in May to 334 in June, the June 2024 number is less than June 2023 (502).

This means the year-to-date increase of 20% in housing starts from January to May dropped to a 5% increase from January to June (1,906) vs the same period in 2023 (1,814).

Year-to-date numbers are more reliable because monthly housing data may be an anomaly based on large multi-family projects.

In June, the City of Victoria rebounded from only 20 starts (January to May 2024) to 303, mostly big multis. They are still down 19% from last year, so any claims they are exceeding housing targets are not credible, given the decline year-to date. Read “Measure Housing Starts for Supply Targets.” 

In Greater Victoria, there are 1,594 units from large multi-family projects, 143 single family and 169 townhomes, duplexes, etc. There has been a big shift to large multis due to high construction costs, government fees, taxes and regulations, and high interest rates. Monthly housing data will be skewed based on the timing/appearance of these large projects.

Most of the new housing is in Langford (827), representing 43% of all new housing in our region. They are followed by Colwood (336), Victoria (303), Saanich (253), Sooke (72), View Royal (69), Esquimalt (18). Oak Bay has 11, Sidney 10, North Saanich 5. Sidney has seen a sharp decline since the new council was elected in 2022.  Also doing poorly are the municipalities posting zero starts – Central Saanich, Highlands, and Metchosin.

Some municipalities are ratcheting up regulations and fees to obstruct the province’s legislation enabling up to 6 units on single family lots. Oak Bay recently approved a bylaw increasing the site setbacks and reducing the building height of missing middle housing vs the recommendations in the province’s site standards manual. This manual should be mandatory, not optional.

Some also calculate floor area to include exterior siding, and require additional permit approvals for soil removal despite an approved building permit obviously requiring an excavation. There is a disconnect at all government levels regarding the ongoing layering of regulations and fees on new housing, putting housing further out of reach for young families.

While the BC government announced rezonings and housing targets for some municipalities, they also increased Development Cost Charges by including police & fire stations, sold waste treatment facilities and highways in addition to the already covered sewer and water, sidewalks, parks, etc. Previously negotiated Community Amenity Contributions were legalized like DCCs, and this will also add costs to housing. The CRD plans to add water charges of $9,045 per new single family home and $7,914 for townhomes, duplexes etc of which there is already a shortage. More charges will be applied to large multi-family projects. There needs to be a cap on rising fees and regulations.

Casey Edge is the Executive Director of the Victoria Residential Builders Association

by VRBA