Over the last six years, the city approved building permits for only 29 per cent of its target of 700 new medium-income homes, and just 60 per cent of its 700 low-income home target.
The City of Victoria continues to fall short when it comes to spurring creation of medium- and low-income housing, says a new report.
Over the last six years, the city approved building permits for only 29 per cent of the 700 new medium-income homes it had hoped for, and just 60 per cent of the 700 low-income homes it set as a target in 2019, according to an annual review of its housing strategy.
The city also fell short of its goal of starting 1,000 new missing-middle homes, a category that includes townhouses, small apartments and duplexes — by the end of 2025, as only 463 building permits have been issued.
It did manage to approve permits for 1,901 of the hoped-for 2,100 affordable new homes over the last six years, and exceeded its goal of 700 new very-low-income homes by approving permits for 723 units.
Some councillors noted that the city has made headway in improving the rental vacancy rate to 3.2 per cent — the highest it has been since 1999 — and exceeding a goal set in 2019 of issuing building permits for 6,000 new homes.
The city approved 6,448 building permits for new housing units between 2019 and 2025, issued permits for 3,626 new market rental homes — nearly double the target of 1,900 — and approved the construction of 1,361 new condos, surpassing the target of 1,000.
The report noted the city set a record for the number of building permits issued for housing last year, at 1,820.
There were 729 new homes completed last year, while 1,617 purpose-built rental homes were approved. At the end of last year, about 2,375 rental units were under construction in the city.
Coun. Krista Loughton said the city needs to work on getting funding from the federal government’s Build Canada Homes program for lower-cost housing, especially deep-subsidy housing.
She lauded the fact that another eight non-market housing projects are in various stages of the building process, and will bring 813 more units to the city.
Coun. Chris Coleman said it’s important to recognize the difference between more units and more affordable units. “There is a whole slew of our citizens who can’t afford life at the moment, and they’re always being forced on the edge.”
He pointed to the goals for the next stage of the city’s housing strategy, which include a focus on non-market housing development, as the right direction.
The next 10-year segment of the housing strategy will aim to improve renter stability and protection, expand housing options, improve city processes for residential development and better support the development of non-market homes.
City staff have also set interim housing “goalposts” to monitor progress through 2028, when the next housing needs report is delivered.
This past week, council approved targets of 997 to 1,330 new homes each year for the next three years.
The goal is to have 648 to 865 rental homes approved each year, along with 348 to 465 non-market rental units, 348 to 465 new ownership homes, and 150 to 200 ground-oriented homes, as well as issuing of building permits for 170 to 225 three-bedroom units.
Mayor Marianne Alto said the targets may not be aggressive enough, and more work is needed to pinpoint policies to support affordability and accessibility and protect renters.
Coun. Dave Thompson said the vacancy rate needs to be closer to a sustained four per cent before the market will be balanced. He also said rents remain far too high.
“We’re still hearing people say that rents are astronomical, and they’re right.”
The average rent across all unit types in Victoria was $1,714 in 2025, a six per cent increase from $1,622 in 2024, the staff report noted. However, it said there was a clear decline in monthly average rents for one and two-bedroom units.
Thompson said the population of Victoria is still expected to grow each year, while the city has to tackle latent demand of about 8,000 housing units. Latent demand refers to housing need that wasn’t addressed over the years due to underbuilding, or people not being able to afford to establish a new household.
“So, while there’s a good moment here to give ourselves a pat on the back, or rather to give staff a pat on the back, we also need to not take our foot off the gas,” he said.
Coun. Marg Gardiner said having hit many of the targets set in 2019, it may be time for the city to focus on housing for older people and those with disabilities.
“I’m very concerned about our elderly and those with mobility challenges,” she said.
