Residential construction shows signs of slow down

​A report by the Chartered Professional Accountants of BC says that high interest rates are slowing investment in much needed new housing in the province.

"High interest rates are expected to stay and the significant decline in building permits issued across Greater Victoria indicates building investment may weaken significantly in 2023,” LL Brougham Inc. president Lindalee Brougham said in a new release. “Given how important these investments are in terms of providing additional housing and services, and spurring economic growth, it is more important than ever that we foster an environment that attracts more capital to our region.”

A total of 4,787 housing units began construction in Greater Victoria in 2022, down from 4,809 in 2021. Last year was still higher than the average for 2016 to 2020, which was 3,555 units per year.

“Last year, housing activity was strongest in larger developments with many units. And with the high cost of land here, there is a need for density,” noted
Brougham, a Chamber Governor, who served as board chair in 2007. “Another positive investment trend was a strong level of major project construction.”

The estimated value of Greater Victoria's major projects — those that cost more than $15 million — was $14 billion in Q3 2022, up from $13.9 billion in Q3 2021.