Vancouver Island Housing Market

10/23/2025

This should’ve been approved seniors need housing, not just supportive housing individuals

10/12/2025

Vancouver Island Housing Market

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08/29/2025

13-storey rental block with ground floor retail could replace 65-year-old parkade.

05/28/2025

Canadian Consumer Insolvencies Only Surpassed By 2010 & 2020 Peaks

MAY 28, 2025

The Canadian economy may be outperforming, but households are getting slaughtered. The latest data from the Office of the Superintendent of Bankruptcy (OSB) shows consumer insolvencies surged in March. The 12-month volume has reached levels only seen during the 2010 and 2020 peaks—both periods known for sharp declines in economic activity. While annual growth had been slowing, March’s sudden spike suggests this trend may worsen before improving.

Key Findings

March Spike: Insolvencies jumped 11.2% month-over-month to 12,126 filings (4.9% higher than 2024).

12-Month Total: 137,635 filings—just shy of the pandemic peak and 8% higher than last year

Recession Incoming: Consumer insolvencies have only reached this level twice before—in 2010 and 2020.

Canadian Consumer Insolvencies May See A Second Wave Surge

Canadian consumer insolvencies continue climbing from pandemic lows.

OSB reported insolvencies jumped 11.2% to 12,126 filings in March—4.9% higher than last year. Monthly data usually isn’t noteworthy due to seasonality, but noteworthy since it was the biggest jump since mid-2020.

We’ll circle back to this in a moment.

Over the past 12 months, Canadians filed 137,635 insolvencies—nearing the pandemic-era peak. The volume is 8% higher than last year, up from February’s 7.4% (which previously marked the slowest growth in 3 years). While the broader trend had been decelerating, March’s abrupt reversal erased some progress. It was only a single month, and one month isn’t a trend, but it can signal the start of one.

History shows only two periods with comparable insolvency levels: the Global Financial Crisis (early 2010 peak), and the pandemic (March 2020 peak). Insolvencies peaked early in these recessions, suggesting today’s numbers might foreshadow an economic downturn.

Recent data shows signs of peaking, with 12-month growth starting to slow. This aligns with historical numbers and the current narrative that a recession is underway or imminent. Whether March’s acceleration was noise or the start of a second wave of debt reckoning fueled by a trade war, remains unclear.

05/28/2025

B.C. government takes punches as Victoria earns negative national spotlight

Victoria’s mayor and a local business association are calling on the B.C. government to step up as the city makes national headlines for the wrong reasons.

The Globe and Mail recently published two stories that highlight the addictions and homelessness crises in B.C.’s capital city. One of the headlines refers to Pandora Avenue — the epicentre of the crises — as an “open-air drug market.”

“This is now a national story. And yes, this is an issue that’s happening everywhere, but now people in Toronto are saying … ‘Victoria is a terrible place,’ and that just hurts business,” said Downtown Victoria Business Association (DVBA) executive director Jeff Bray.

Some business owners are considering leaving the downtown core, where theft, vandalism, and open drug use are long-standing problems, Bray said. While locals are well aware of these issues, the national attention is renewing calls for the province to deliver additional support.

“The provincial government is fully — let me repeat that — fully responsible for health care, mental health, addictions, housing,” Bray said in an interview with CTV News Vancouver Island.

“The way in which the provincial government has dealt with this over the last decade has led to these problems, (so) it falls to the city to try to deal with that.”

As the Globe first reported, the municipality said it has spent more than $12-million helping unhoused people since 2023. Last year, the city said it couldn’t wait for higher levels of government to act, so it provided funding to a support facility called Dowler Place, where people are referred to housing and addictions services.

“I confess a little frustration, occasionally, when comments are made to suggest municipalities are acting on their own. Sure, they’re acting on their own because we have to,” Victoria Mayor Marianne Alto said on Monday.

“It really is the gap in the provincial government programs that are forcing us into these lanes. We don’t want to be here.”

If the city didn’t step in, Alto said the situation would be “dramatically worse.”

The municipality is launching a community safety plan late next month, which the mayor said will dramatically change the local response to the issues of homelessness, addiction, and mental illness.

Province highlights progress

Over the past year, the number of people sleeping on Pandora Avenue has fallen from roughly 100 to 19, B.C. Housing Minister Ravi Kahlon said.

“All of those folks have been offered housing,” Kahlon said. “Some people … have been kicked out of other housing and find themselves there and we have some individuals who just flat out refuse housing.”

If municipalities want more resources, Kahlon said they need to tell the province where to put them.

“If you can find us a location, we’re willing to help support getting more housing online. And if it means the region works together, we’re there,” he said.

Both the mayor and DVBA have repeatedly highlighted how social services are concentrated in the core. Some of those services need to be established in other communities, they said.

One service producing success stories is a 20-minute drive away from downtown Victoria in the municipality of View Royal. The Our Place Society said people are healing at its addiction treatment centre, New Roads.

“We also have people on our staff at Our Place who are full-time employees, who were on Pandora once and in chronic addiction and now have changed their lives fundamentally,” Our Place CEO Julian Daly said.

“There is good reason for hope amidst the despair.”

05/28/2025

Amid B.C.’s tariff and trade-challenges, short-term rental rules need to change, group says

The B.C. Real Estate Association is calling for changes to the province’s short-term rental restrictions ahead of the busy summer travel season.

The organization said that amid B.C.’s current tariff and trade-challenged environment, along with the provincial government’s public advisory to find alternative places to visit this summer, provincial priorities need to be adapted.

“While affordable housing is a critical provincial issue, so are provincial economic wellbeing and the health of our tourism sector,” the organization said in a statement.

“When the Short-Term Rental Accommodations Act and its accompanying regulations were put into force, the province was extremely focused on creating additional housing by any lever possible. Since its implementation, however, short-term rental (STR) legislation has caused a series of economic challenges across the province that need to be addressed.”

The real estate association said that while the need for housing is great, long-term rentals can be a vital piece of the housing continuum and they want to see a few changes made.

The first would be to return zoning autonomy to local governments.

“As it stands, local governments can opt out of the principal residence rule in the legislation if they provide adequate written notice and can prove their vacancy rate has been three per cent or over for two consecutive years,” the organization said in a statement.

“While this formula may work for some local governments, the provision has proven to be too restrictive for many communities.”

It cited Parksville as an example, which has not experienced a three-per cent vacancy rate in more than 20 years and so would not have qualified for the exemption.

The city was eventually granted a partial exemption.

“Prior to the implementation of these rules, many local governments had areas and buildings zoned specifically for STR use,” the organization said.

“This allowed communities to balance their need for tourist accommodation with the need for long-term rental units.”

Government extends deadline for short-term rental platforms
Second, the real estate association wants to expand the Strata Hotel and Fractional Ownership Exemption.

The Short-Term Rental Accommodations Act provides an exemption from the principal residence requirement for strata hotels and fractional interest property.

An exemption exists for these property types, provided the property owner is unable to use their property as a principal residence due to a mandatory provision in a rental pool, rental management agreement, or fractional ownership agreement.

The real estate association said these regulations, which were recently amended to include other criteria, are confusing and currently exclude some strata hotels from acquiring exemptions.

“In order to accommodate tourists as well as owners who may wish to live in high-tourism communities on a part-time basis, a high number of unique ownership types such as strata hotels and fractional ownership properties exist across the Interior,” the organization said.

“These properties were designed to facilitate such short-term occupancy needs and are often ill-suited for long-term tenancy. While long-term occupancy is possible in some cases, the primary purpose of these buildings remains focused on tourism and short-term tenancy.”

Third, the real estate association wants exemptions put in place for areas that are close to health care centres.

They said that due to people needing to travel across B.C. for medical reasons, long stays in hotels may not always be viable or appropriate.

For the North and Interior especially, the organization said an exemption should be made for STR units close to major health care centres and hospitals so that the region’s health care needs can be met.

Finally, the real estate association said it would like exemptions for the television and film sector to incentivize projects to continue operations across the province.

“Current STR legislation has hindered the TV and film sector’s ability to house the sizeable transient cast and crew on these projects,” the organization said in a statement.

“It has created an over-reliance on already challenged hotel room inventories across the province, further lowering year-round vacancy rates, increasing consumer competition, and driving up average hotel costs.”

Trevor Hargreaves, the senior vice-president of government relations, marketing and communications for the BCREA said the organization knows the government has a challenging job of balancing housing policy with overall provincial economic wellbeing.

“Some key changes to current short-term rental legislation would help many people and communities across the province while maintaining the spirit of the original policy,” he said.

B.C. Premier David Eby has hinted the STR rules won’t be in place forever, but the housing minister maintains they are still needed right now.

“There are already exemptions put in place for communities that reach a high vacancy rate, to be able to get relief from the measures we’ve put in place,” Minister Ravi Kahlon said.

“By the way, those measures are working, we’re seeing rents come down, we’re seeing more housing opportunities come available for communities, and that’s always been our priority.”

05/28/2025

Study shows single-family homes growing in popularity with Victoria renters

More solo rentals are looking for houses instead of apartments across Canada and here in Victoria

A new study is showing more of an increase in single family home rentals than apartments.

A new housing study has highlighted a nationwide pattern with implications for Victoria’s housing market.

The study points to a growing trend in B.C., where single-family renter (SFR) households are increasing significantly faster than those in apartments. An SFR household is a household that rents an entire single-family home.

However, according to Point2Homes, it’s not families driving the increase but solo renters – who would typically be expected to rent smaller units such as studios or one-bedroom apartments.

05/28/2025

Bryan Yu: B.C. housing stalls again as buyers wait and builders push ahead

With prices falling and buyers cautious, B.C.’s housing market looks stuck — except in the construction sector, where momentum is building

Homebuyers remain hesitant amid high rates and low confidence, yet builders are pushing ahead with multi-unit projects and higher permit volumes.

B.C.’s housing market deteriorated again in April with a fifth consecutive month of lower sales. According to Canadian Real Estate Association data, seasonally adjusted MLS home sales in the province fell 2.3 per cent from March to 5,331 units, following a 5.9-per-cent dip in the prior month. Although the economy held firm in April with steady employment, consumers are still pessimistic as trade tensions linger and the labour market weakens.

Home sales declined in all B.C. regions except for South Okanagan and Vancouver Island (excluding Victoria). In the Greater Vancouver area, home sales declined by 3.3 per cent, and fell 4.8 per cent in Victoria. Year-over-year sales fell in many areas as well, notably in Greater Vancouver (down 21.1 per cent) and Chilliwack (down 18.3 per cent).

The average home price in B.C. decreased by 0.9 per cent in April to $922,200. Prices now sit 14.1 per cent below the historical peak in February 2022. Housing supply from new listings fell by three per cent. While potential buyers are still hesitant, market conditions are still on their side with a sales-to-new-listings ratio of 38.4 per cent.

Regionally, lower prices were recorded in Greater Vancouver (down 1.2 per cent), Vancouver Island excluding Victoria (down 3.6 per cent), Kootenay (down three per cent) and Northern B.C. (down 2.2 per cent). Prices increased in other regions during the month.

Benchmark constant-quality measures were consistent. In the Lower Mainland, the index decreased by 1.2 per cent, and was down 1.6 per cent in the Okanagan. In contrast, the index increased in Chilliwack by 1.4 per cent and was unchanged on Vancouver Island.

Going forward, we expected tempered sales and easing prices to continue as a tariff-driven economic slowdown lifts the unemployment rate and restrains confidence, and inventory remains elevated. This will continue until mortgage rates fall further and trade uncertainty stabilizes.

On the construction front, March permits picked up ahead of an upswing in housing starts in April. Building permit issuances were up by 7.9 per cent in March, coming in at a seasonally adjusted $2.9 billion. Compared to a year ago, building permits were up 89.6 per cent for March, but permits are highly volatile. Year-to-date permit volumes in B.C. were 41 per cent higher than in the same period last year.

Driving B.C. growth was the residential sector, which saw a notable increase in multiple dwelling buildings permits of 29.9 per cent. The result was almost double the increase registered last March. Single-dwelling building permits were also up 6.4 per cent and were 0.6 per cent above last March’s level. Year-to-date residential permits were 43 per cent higher than in the first quarter of 2024.

In contrast, B.C.’s non-residential sector saw building permits decrease 19.2 per cent in March, driven by a 29.6-per-cent decrease in commercial permits, following a surge in permits issued in February. Institutional and governmental permits also fell four per cent. Despite the retrenchment, public permits were still 274.6 per cent above last March. Despite the monthly volatility, year-to-date permits in B.C.’s non-residential sector were 36.7 per cent higher than in the same period last year.

05/26/2025

City of Duncan wants province to regulate rent increases between tenancies

City also wants The Village project part of housing continuum

The majority of the City of Duncan’s council want the province to regulate rent increases by landlords when one tenant moves out and another moves in.

At its meeting on April 28, council directed staff to prepare a resolution on the issue to submit to the 2025 Union of BC Municipalities Convention for consideration.

While the province introduced a two per cent rent increase cap per year in B.C. in 2023, which was meant to help British Columbians navigate high costs of living, it does not apply to rent increases between tenancies.

Coun. Carol Newington said affordable housing continues to be a big issue in the city, as well as across the province, and she would like to see a cap introduced to regulate rent increases across B.C. in these cases as well.

“Sometimes when a tenant leaves, the rent is often doubled, or even more in some cases,” she said.

“There’s a two per cent cap in rent increases every year in the province, so maybe a cap of 10 per cent could be implemented across B.C. if a tenant vacates.”

Coun. Garry Bruce said he understands what Newington is trying to accomplish with her motion.

“However, if your taxes have gone up 11.1 per cent [Duncan’s tax increase for 2025], your insurance is gone up and other things have gone up dramatically, it’s hard to tell the landlord that he can’t cover those costs, in my view,” he said.

The motion passed, with Bruce opposed.

In 2023, after the Municipality of North Cowichan also asked the province to regulate rent increases between tenancies, the Ministry of Attorney General said in a statement to the Citizen that the province appointed a Rental Housing Task Force in 2018 to better understand what further changes may be needed to modernize British Columbia’s tenancy laws other than the two per cent rental cap.

“The task force, after consulting with renters and rental housing providers, did not recommend implementing vacancy control in its 2018 report to government,” the ministry said at the time.

“In addition to capping the 2023 annual rent increase amount to two per cent, the province has made several significant changes to provide relief to renters in B.C., including limiting annual rent increases to inflation, addressing the issue of renovictions, strengthening penalties for breaking the law, expediting the return of security deposits, and allowing email as a way of serving documents.”

Staff were also directed to prepare a resolution to have the The Village transitional-housing project on Trunk Road included in the federal government’s Homes for People housing continuum that will also be presented for consideration at the next meeting of the UBCM in September.

The Village, which was first established in Duncan in 2021 during the COVID-19 pandemic, currently has 34 modular sleeping cabins for people in transition from homelessness, and wraparound services are provided 24 hours a day.

Mayor Michelle Staples said that at a previous UBCM meeting, the Village model was unanimously supported across the province, but it has still not been included in the federal housing continuum.

“Maclean’s magazine had it as one of the 25 models that should be adopted in order to address the crisis as a continuum for people to enter off the streets and then move into other forms of housing,” she said.

“It’s being adopted across Canada and in other places in B.C., so it deserves a place on that [housing continuum] in my humble opinion.”

The motion, as well as a motion for more on-site mental health and addictions services for supportive and transitional housing, were passed unanimously.

05/26/2025

'The fear is real,' says TD, predicting 100,000 jobs will be lost in looming recession

Most economists say the downturn has already begun

Recession rumblings are growing louder with more economists forecasting that Canada is already in the early stages of such a downturn.

U.S. President Donald Trump’s tariff war has soured sentiment among businesses and households on both sides of the border, but in Canada the retreat has been even deeper than seen during the pandemic, said Beata Caranci, chief economist for Toronto Dominion Bank.

Concern over losing a job spiked to over 20 per cent in the Bank of Canada survey of consumer expectations and business confidence has plunged, according to the CFIB barometer.

There is a difference though. In the United States sentiment is low, but the economy is holding up. In Canada there is a tight correlation between negative sentiment and the hard data, Caranci said in a recent client presentation.

In other words, in Canada, “the fear is real,” she said.

Canadian companies have cut 75,000 jobs in just two months, half of them in manufacturing, she said.

TD expects another 100,000 Canadian jobs could be lost through the third quarter, bringing the unemployment rate to a peak of 7.2 per cent, a full percentage point higher than the bank’s December forecast.

The bank has also downgraded its forecast for gross domestic product and is now calling for a contraction in the second and third quarters of this year.

It’s not alone. Economists surveyed by Bloomberg say that Canada is likely already in the early stages of recession.

They expect the economy to shrink 1 per cent on an annualized basis in the second quarter and 0.1 per cent in the third.

That has set the clock ticking for the new federal government. Prime Minister Mark Carney’s government has delayed its budget until the fall, but in the meantime is proceeding with measures to bolster the economy that Caranci expects will fall short.

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The 1 percentage point drop in the tax rate on the lowest tax bracket will cost the government about $5.6 billion a year, but only amount to $32 in the pockets of average income earners.

“Despite having appeal between parties and the voting base, it won’t deliver a meaningful lift to consumer spending. In times of job uncertainty, people will save it,” she said.

Caranci said the money would be better spent on initiatives that encourage spending, such as tax credits for climate-friendly home renovations or a GST holiday.

“How to spend a $5-6 billion price tag in the early days of this transition will be key to putting a floor under the economy, because doing minimal measures means that by the time the House returns in September, there’s a good chance Canada is already in a recession,” she said.

“By then, any negative employment dynamics become harder to unwind.”

Easing home prices and new construction have improved housing affordability in Canada this year, but the problem is far from being solved, said Moody’s Analytics.

Income gains have not caught up to the post-pandemic surge in home prices, and though the Bank of Canada’s housing affordability index — which measures the share of disposable income going to housing expenses — has slipped from its 2023 peak it remains at a multi-decade high, said Moody’s economist Kyra Kendrick.

“While slower-growing or declining prices will help to alleviate some affordability woes, strong income growth is needed to meaningfully lower the index, an unlikely feat in the struggling economy,” she said.

05/26/2025

Are mortgage rates getting cheaper?

Depends on where you live

If you’re looking to buy a house this summer or renew your mortgage, there could be good news for you. But whether your rates are going up or down depends on where you live.

The monthly home affordability report by RateHub.ca looked at home prices and mortgage rates from 13 Canadian cities. In seven of those cities, mortgage affordability improved.

While borrowing costs remained largely stagnant in late March and early April, plummeting home sales across Canada contributed to improved affordability, the report said on Thursday.

According to the Canadian Real Estate Association, home sales dropped by 9.8 per cent in April.

“The lowest 5-year fixed rate as of May 22 is 3.84%. We’ve used the average of the Big Five Bank’s rates in our calculations. Securing a lower rate, such as 3.84%, would have a big impact on how much you can qualify for,” Penelope Graham, mortgage expert at RateHub.ca, said in a news release.

Where did rates go down?

According to the report, the city that saw the most significant improvement in housing affordability in April was Hamilton, Ont.

The average home price in Hamilton was $801,400 — a drop of $9,600 from March.

A Hamilton homebuyer would need an annual income of $166,500 to be able to buy a house. With a 10 per cent down payment and a 25-year amortization, their monthly mortgage rate came down to $4,066 a month.

This means that a Hamilton mortgage buyer who locked down their rate in April would save $49 a month compared to someone who locked it down in March.

“The Hamilton borrower in this scenario would save $49 on their monthly mortgage payment ($588 a year) in April compared to if they bought in March,” Graham said.

The mortgage figures in this report are based on a mortgage with a 10 per cent down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating costs.

Toronto saw the second biggest drop in home prices, with the average home price dropping $7,500 to $1,009,400. A Torontonian would need an annual income of $205,850 to afford a home and their average mortgage payments came in at $5,122 a month — a drop of $38.

While Vancouver saw the third biggest decline in home prices, with a decline of $6,300, it remains Canada’s most expensive housing market by far, with an average home in April costing $1,184,600.

Vancouverites also need the highest annual income of any city in Canada at $238,970 a year. They would also have to pay the highest monthly mortgage of $6,011 with a 10 per cent down payment, although it dropped $32 from March.

The two Maritime markets that saw a drop in home prices are Fredericton (average home price of $333,900) and St. John’s ($369,400). The annual income needed to buy a home is $78,000 in Fredericton and $84,760 in St. John’s.

The average monthly mortgage payment for a homebuyer in Fredericton in April was $1,693 (a drop of $11 a month) and in St. John’s it was $1,100 (a drop of $6 a month).

The two big Alberta markets saw affordability improve marginally.

The average Calgary home cost $583,000 in April, a drop of just $400. A homebuyer in that city would need an annual income of $125,170. The average Edmonton home cost $431,100 in April, a drop of just $200, and an Edmontonian would need an annual income of $96,430.

Monthly mortgage payments came down by $2 in Calgary ($2,958) and $1 in Edmonton ($2,187).

The city that saw affordability worsen the most was Regina. The average home price in Regina rose $9,100 to $335,400 and the annual income needed to buy a house rose to $78,330.

A Regina homebuyer who locked down their mortgage in April would have to pay $1,702 a month.

“The Regina borrower in this scenario would pay an additional $46 on their monthly mortgage payment ($552 per year),” Graham said.

Montreal saw the second steepest hike in housing affordability with the average home price rising $6,300 to $574,900 in April compared to the price in March.

A Montrealer who locked down their mortgage in April would have to pay an additional $32 a month with monthly costs of $2,917 compared to one who did so the month prior. They would need an annual income of $123,640.

In April, Victoria came in as the third most expensive housing market in Canada after Vancouver and Toronto, with average home prices rising to $897,300 and the average homebuyer needing an annual salary of $184,620. Monthly mortgage costs rose $32 to $2,917 a month.

The cost of the average home in Halifax rose by $6,000 to $563,000, with an annual income of $121,400 needed to buy a house. Monthly mortgage payments rose to $2,857.

Housing also got more expensive in the nation’s capital, with the average Ottawa home now costing $631,200. A homebuyer in that city would need an annual income of $134,300. An Ottawa resident locking down their mortgage in April with a 10 per cent down payment would have to pay $3,203 a month.

Winnipeg also saw a marginal worsening of affordability, with home prices rising by $700 to $385,300 and monthly mortgage costs rising by $4 to $1,955. A Winnipeg resident would need an annual income of $87,770 to buy a house, the report said.

05/26/2025

Current stats from
Househuntvictoria.ca