CASEY EDGE
VICTORIA – CMHC reports housing starts in Greater Victoria declined 4% January to November from 4,517 in 2022 to 4,348 units in 2023. Year-to-date, large multi-family condos/apts are up 6% at 3,635 units, however, single detached homes are down 44% (358 units) and missing middle (townhomes, duplexes) are down 19% (355 units). Much of the decline is the result of higher interest rates undermining affordability in moderate housing that is more costly to build, and must command a higher price than large multi-family. In addition, municipalities continue to boost fees and regulatory costs regardless of high mortgage rates and prices.
The City of Victoria’s housing starts are down 51% from last year’s 1,700 to 839, while Langford is up from 1,067 to 1,115. Also way up is Central Saanich from a paltry 38 last year to 299, mostly due to large multi-family construction. Saanich is also clawing its way back from only 331 last year to 532, again mostly due to large multi-family construction. Their approval processes continue to be some of the most challenging and costly in the region.
Joining Saanich and Victoria in challenging approval processes is Sooke, with a 57% decline in housing starts from 230 last year to 100. Sooke seems to have mostly abandoned inspections leaving builders high and dry. The municipality appears to be an administrative nightmare and council seems oblivious to the problems.
The BC government recently announced mandatory rezonings and housing targets for some municipalities, however 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.
There is zero new missing middle housing in Metchosin, Highlands, North Saanich and Oak Bay. Central Saanich has 2 units and View Royal has 5 units. These municipalities are exactly why the BC government stepped in to rezone single detached lots to include townhomes, duplexes, etc.
Casey Edge is Executive Director of the Victoria Residential Builders Association.
