Property owners, check your mail. You can expect to receive your 2024 assessment notice any day now. The assessments reflect market value as of July 1, 2023, and can also be viewed at bcassessment.ca.
“For 2024, most homeowners can expect generally flat values including a mix of small decreases or only modest increases, reflecting the softening real estate market," Vancouver Island Deputy Assessor Matthew Butterfield stated in a news release. "Homeowners throughout Vancouver Island will generally see somewhere in the range of -5% to +5% change in assessment values." Total assessments for Vancouver Island properties were more than $386 billion this year, up about $1 billion from 2023. Assessments are not directly connected to any change in your property taxes, as those are set according to the needs of the municipality your property is in. However, if your property's value changed relative to other properties, you might see a change in your tax bill. In Greater Victoria, every municipality experienced a drop in the assessed value of a "typical home," including the examples below: A slow economy could help Greater Victoria residents finally make the move to a new home within the region. Having that mobility is one of the keys to improving the supply of housing affordable to people at various stages of their careers.
"Local people who planned to sell and move within Greater Victoria may have hesitated to list their homes back when record low inventory meant less choice when they became buyers," Victoria Real Estate Board Chair Graden Sol said in a media release. "Now that we see some balance in the market, these people have more inventory to pick from and may feel more confident listing their existing home. And of course, all buyers are having better experiences with more time and more choice." There were 2,644 active listings for sale at the end of November 2023, a 25.2% increase from November 2022. The benchmark value for a single-family home in the Victoria Core in November 2023 was $1,286,400, down from October's value of $1,305,900. The benchmark value for a condominium in the Victoria Core area in November 2023 was $577,400, down from the October value of $585,600. New housing on campus at the University of Victoria is helping ease pressure on the region's rental market.
A residence opened in September, providing 385 single rooms for first-year students. UVic guarantees on-campus housing to help new students acclimate to university life. A lounge for Indigenous students also opened as part of the multi-stage project, which will add 621 new beds and 162 replacement beds, increasing on-campus housing by 25%. The Songhees Nation gave UVic permission to use lək̓ʷəŋən names for the new buildings to honour the territory on which the buildings stand. The first residence, Čeqʷəŋín ʔéʔləŋ (Cheko'nien House), is named after what is now known as Oak Bay, while Sŋéqə ʔéʔləŋ (Sngequ House) is named after a village located in what is now known as Cadboro Bay. The Chamber has been a vocal advocate for the on-campus housing to help free up rental units for our regional workforce. A report by Deloitte Canada released this week offers an insightful look into how housing plays a direct role in our economic productivity. Specifically, the report examines housing "not entirely governed by the laws of supply and demand."
The report calls this "community housing," which includes co-ops, non-market homes, social housing and lower-cost market rentals. Among the findings is that housing affordability in Canada is at its lowest point since 1990. Canada is also facing a problem with lagging productivity and we need to find ways to boost output without causing inflation to rise. Through its research, Deloitte found adding community housing to a region supports economic development and productivity. Community housing had been a much more prevalent part of home construction until the 1980s. After several decades of little investment in this type of housing, more units are now being built — though they still represent a relatively small share of total stock being added. The Canadian Mortgage and Housing Corporation recently reported that Canada needs 3.5 million new homes by 2030 to achieve affordability. Deloitte's report concluded that government investment in community housing will help meet this demand and boost our economy's potential output growth. "If Canada’s community housing units as a share of total housing units were to increase from 2023 Q2’s level of 5.5% to 7% by 2030 this would require an increase of 371,600 units in Canada’s total community housing net stock," Deloitte's report stated. For BC, this would equate to 50,870 additional units by 2030 — a 42% increase from 2023 levels. Doing so would increase provincial productivity by up to 9.3% adding $25 billion to BC's GDP. Greater Victoria saw a jump in the value of residential permits in September compared to the same month last year.
The total value of residential permits in September was $203.8 million, compared to $175.9 million in September 2022. The region also posted a 134% jump from August, which saw $87.1 million worth of residential permits issued. Across Canada, the total monthly value of residential permits increased 4.3% to $7.2 billion in September, led by a 37.2% monthly increase in construction intentions in British Columbia. The new building permits account for 21,700 new dwelling units nationwide, 5.6% more than August 2023 and 2.3% more than September 2022. Cutting through red tape is another way to help construction projects get started faster and proceed more efficiently.
Starting next spring, 16 local governments — including the District of Saanich and the City of Victoria — are piloting a new digital tool that could speed up the process of building new homes. “Digitizing the BC Building Code and building permit processing will help builders more efficiently obtain approvals to deliver the homes and job spaces British Columbians need,” Urban Development Institute president and CEO Anne McMullin said. “UDI is pleased to participate on the digital advisory council for this pilot partnership and is committed to working with the government on innovative solutions like this.” Chamber advocacy is helping make changes that will increase housing supply. This is critical to a sustainable economy. We need more homes for people of all incomes so our region remains attractive as a place to grow a business, build a career and raise a family.
One of the keys to building more houses is for our construction sector to have enough skilled workers. The industry is expecting more than 72,000 jobs to open up over the next decade. A new fund, announced today, will provide grants of up to $5 million per project. The Workforce Innovation Fund will:
"We continue to work with all levels of government, our partner organizations and our national chamber network to call for investment in the construction industry," Chamber CEO Bruce Williams said. "Builders need to have the people and resources required to improve our critical housing supply." The targets are now official for three Greater Victoria municipalities deemed to be among the top 10 BC communities with the most pressing housing needs.
The Housing Supply Act requires the following number of new homes within five years:
“These targets are a step toward creating more homes to meet the diverse housing needs of Saanich residents,” Saanich Mayor Dean Murdock said in the province's news release. “We are committed to working together with the Province on housing solutions, and welcome their support to help us achieve our goals.” After six months, and every year thereafter, municipalities will be evaluated on their progress. A second cohort of eight to 10 municipalities will be selected by the end of the year. An adequate housing supply directly supports a robust workforce, which is critical for employers' efforts to find and keep staff. Reducing red tape at the municipal level is one of the keys. Investing in efficiencies is another, which is why The Chamber supports last week's news that funding will help local governments improve their development-approval processes.
The province has $61-million in capacity funding to be distributed over three years. Secondary suites have long played an invaluable role in our economy, offering affordable housing for many workers who are vital to keeping our economy vibrant.
The Chamber applauds Monday's announcement that will see less red tape for homeowners who want to add secondary suites — which also creates income that helps with the cost of living. As well, an incentive administered by BC Housing will provide a forgivable loan to qualified homeowners of up to $40,000 to add a secondary suite. The unit must be on the property where the homeowner lives and rent for less than market rates. The province has prepared the Home Suite Home guide to provide more info on programs that incentivize the creation of new rental housing. The provincial government has capped the allowable rent increase to 3.5% for 2024.
Landlords who plan to raise rent in 2024 will need to provide tenants with three months notice using the correct form and following specific rules. BC's Minister of Housing, Ravi Kahlon, said costs are increasing for landlords and tenants. The need for affordable housing well documented, but many property owners are facing higher costs for repairs, financing and maintenance. The province claims the 3,5% cap will keep people housed while making sure rental units stay on the market. The rent increase cap does not apply to commercial tenancies, non-profit housing with rent geared to income, co-op housing and some assisted-living facilities. A report released Wednesday morning offers a tangible take on how many new homes need to be built in Canada to restore affordability.
The Canadian Mortgage and Housing Corporation said that the slowing economy and growing population have changed the forecast for where housing is most needed. We need about 3.5 million new homes by the end of the decade, with BC and Ontario dealing with the largest gaps between supply and demand. The predicted shortfall has grown since last year as the CMHC forecasts a slowing economy, tougher financing climate and stretched labour force will result in less construction. "For British Columbia, higher estimated household numbers in 2030 and slightly lower estimated income per household lead to a relatively neutral impact on overall demand," the report states. "Still, the supply gap increases because of a lower projected number of housing units that will be built." The CMHC said its analysis shows the importance of modelling demographic changes as well as economic conditions when planning policies to increase housing supply. The latest sales figures show a slight increase in the number of homes for sale, though the demand for housing continues to affect the cost of living in our region.
According to the Victoria Real Estate Board, there were 2,490 listings at the end of August. That's up 2.9% from the previous month and higher than the 2,137 homes listed in August 2022. "The focus in our market and by all levels of government needs to be on opening up more supply," VREB chair Graden Sol said in a news release. "Our inventory levels, though up from last year, are still too low to support a well-balanced market. A decade ago, we saw over 5,000 active listings in August." Sol noted that many listings were for single family homes, which are at the top of the residential market. "Missing middle homes, such as townhomes and condos represented only 37.1% of listings for sale," Sol said. "Townhomes, which in my experience are what a lot of families hope to purchase, represented only 9.8% of the residential properties for sale. This imbalance in the mix of housing options means there is the potential for more price pressure on these types of properties because demand is concentrated at more attainable price points." The benchmark value for a single family home in August was $1,323,900. That 's up $5,100 from July but down $3,800 from last summer. Housing supply is at the core of Chamber advocacy. Greater Victoria, like much of North America, is facing a crunch — not enough homes are being built to meet demand. This affects the cost of living for employees, delays people from starting a family and impacts the availability of shelter for people experiencing homelessness.
A group of Canadian housing sector organizations recently released the National Housing Accord: A Multi-Sector Approach to Ending Canada’s Rental Housing Crisis. The report offers 10 solutions that aim to focus the efforts of all levels of government and industry on policies to support more building. "It's a bit of a Catch 22 in that we need skilled tradespeople to build homes so that the market has enough supply for skilled tradespeople to be able to afford to live here," Chamber CEO Bruce Williams said. "The lack of housing affects people at all income levels but is particularly concerning for people early in their careers and those who have the added costs that come with raising kids." Housing supply is emerging as the root of many challenges facing Greater Victoria and the economy of Canada as a whole. To try and address some of the foundational causes of a lack of housing, the Community Social Planning Council has released a toolkit for local government. Local Government Levers for Housing Affordability addresses how housing affects everything from "staffing shortages to wage pressure to homelessness."
The document gathers policy tools that have been used successfully by large and small municipalities across the country. |
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