The City of Victoria is pushing forward with various housing initiatives and targets.
In September 2023, the City of Victoria was among 10 B.C. municipalities tasked with a housing target of 4,902 homes over five years by the Province. Victoria surpassed its first-year target of 659 new housing units by delivering 753 homes within the first six months, marking 15% progress towards the Province’s five-year goal.
It is also undergoing a 10-year update to its Official Community Plan (OCP), which will shape its future development trajectory. In 2022, Victoria saw a net gain of 1,008 homes, on target and above the 10-year average.
Victoria Housing Strategy
The City has set a target of 6,000 new homes to be met by 2025 as part of its housing strategy; it is currently within range to meet it.
In 2022, the city saw progress in various types of housing options. Missing middle options are increasing, with 76 building permits issued; however, this was still less than half of the annual target. For ground-oriented homes, 76 building permits were issued, including 26 single detached, two duplexes, 35 secondary suites, and 13 new garden suite homes. However, 27 ground-oriented homes were lost to demolition or deconversion, resulting in a net gain of 49 units, primarily created through secondary and garden suites. Victoria aimed for 266 family-sized homes per year but recorded only 244.
Current Market Update
In April 2024, there were 678 properties sold in the Victoria Real Estate Board region, for a 6.4% increase from April 2023 and a 15.3% rise from March 2024. Condo sales rose 1.5% compared to April 2023, while single-family home sales rose by 3.7.
Active listings at the end of April 2024 rose 14% from March and 47.7% from April 2023.
The MLS® Home Price Index benchmark value for a single-family home in the Victoria Core dropped 0.9% from April 2023 to April 2024, reaching $1,284,600. However, this was an increase from March’s value of $1,279,300. For condominiums, the HPI benchmark value rose 0.7% from April 2023 to April 2024, reaching $567,800, and up from March’s value of $567,300.
Permits and Construction
The city issued 316 building permits and approved rezoning for 1,628 homes during the five-year period in the BC housing initiative.
Victoria’s city council will soon review Reliance Properties’ application for the Capital Iron Lands, a 6.7-acre site earmarked for the Arts and Innovation District. Reliance plans to integrate three heritage buildings and develop a mixed-use community with residential, artist studios, industrial spaces, institutions, and public amenities. This includes expanding the waterfront walkway and creating a new plaza near the proposed new Art Gallery.
Affordable Housing Initiatives
The City is currently encouraging affordable housing through the Fast Track for Affordable Housing program, expediting non-market rental and cooperative projects by reducing approval times and increasing residential densities. To qualify, projects must meet Affordable Housing Development criteria in zoning laws. The delegated approvals Process streamlines permits for developments meeting affordability and design guidelines. Increased Allowable Density rules allow building up to the maximum allowed density in the Official Community Plan without needing rezoning if affordability and design guidelines are met. Projects must also comply with existing zoning rules and not exceed maximum density limits outlined in the Zoning Bylaw. The Inclusionary Housing Policy promotes affordable units within new multi-unit developments, aligning with the city’s affordability goals.
Renting
In Victoria, 61% of residents rent their homes, making rentals a major part of the market. Average rents have increased by 40-48% from 2016 to 2022; however, the median renter household income in Victoria rose by only 26%. In 2022, the average rents for vacant rental units were 26-64% higher than occupied rental units. Meanwhile, the rental vacancy rate increased to 1.4% as of October 2022. 56% of all building permits issued in 2022 were for rental homes.
The secondary rental market was also on a rise in 2022, with a 4.8% increase in inventory.
During the same period, 1,200 existing rental apartment units were sold at an average price of $303,169 per unit.