Homebuilding pace slows as challenges rise on land, zoning

The challenge of finding land on the south Island and homebuilding crews with plenty of work have combined to slow the pace of homebuilding in Greater Victoria through the first four months of this year.

Data released Monday by Canada Mortgage and Housing Corporation show the region has seen 760 homes started so far this year. By the end of April last year, there had been 885 new homes started.

The federal agency said the capital region is now on pace to see 2,441 new homes started this year.

That number rings true with the Victoria Residential Homebuilders Association, which had predicted 2,400 starts in 2017.

“It’s taking a breather from the 2,933 starts of last year, which was the highest starts total since 1989,” said VRBA executive director Casey Edge, noting many builders are still working on projects they started in 2016. “But it’s getting more challenging to find land.”

He said despite high demand for new product, there is little homebuilders can do to supply the market. “The reason is housing is choked between the [Agricultural Land Reserve] and anti-development groups in urban areas.”

Edge said that means development can’t encroach on farmland, nor does it find favour with municipal councils within the urban containment boundary.

“We’ve seen development being held in abeyance by anti-development sentiment and councils who are skittish, frankly, at enforcing their own community plans,” he said.

Edge said other than Langford, city councils seem to fold to the anti-development crowd.

According to CMHC, Langford has seen 311 new homes started so far this year. Only Saanich was close with 92 starts.

“Langford has created a progressive environment with two-day building permits, moving projects forward, creating small-lot subdivisions for build-green homes, but it has really been a struggle in most of the other communities in this region,” he said.

While municipal councils talk about the need for affordable housing, they continue to increase development fees and demands for amenities from multifamily builders.

“The real challenge in this community, frankly, is the willingness of councils to create positive conditions for housing within the urban containment area, the area intended for housing,” he said.

A bright spot in CMHC’s figures is the increase in single-family-home construction this year. Through the first four months of the year, there have been 313 single-family homes started compared with 283 at the same time last year.

Multi-family projects are down to 447 so far this year from 602 in 2016.