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. 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. The findings of a report released today calculating the cost of living in Greater Victoria is not a surprise.
According to the Community Social Planning Council, the 2023 Living Wage for Greater Victoria is $25.40 per hour. That's $1.11 (4.6%) higher than the 2022 rate of $24.29 per hour. "The Chamber continues to work on helping employers find and keep workers, and one of the biggest challenges for organizations is the impact of labour costs on top of all the other input costs that have gone up over the past year," Chamber CEO Bruce Williams said. "Our members are great employers, but it's not easy passing on higher prices to customers. We need all levels of government to address the root of these rising costs." Annual household expenses for a family of four are up $2,393.29 from 2022. The report, released in partnership with United Way Southern Vancouver Island, cites shelter and food costs as well as non-MSP health expenses for the increase. “Given the pressures of housing and inflation, the rise in the Living Wage is alarming but not totally unexpected,” UWSVI Executive Director Erika Stenson said. “It also provides us — whether we are employers, any level of government, business, or labour—with the incentive to convene and discuss realistic, pragmatic ways to help families in Southern Vancouver Island manage the issues around affordability." Chamber members have been calling for a better way to recognize certification gained outside BC. New legislation introduced this week is a step forward, recognizing 29 professions overseen by 18 regulatory authorities.
If the international credentials recognition act passes, the province could have a new superintendent by next summer in charge of fair credential recognition. "We know the stories of highly trained professionals who come to Canada and are only able to find work washing dishes or driving cabs," Chamber CEO Bruce Williams said. "International standards often correspond with provincial standards, so it makes perfect sense to let people who choose to come here continue their careers here. Employers in our region have positions going unfilled and workers are underemployed. Simply put, recognizing international certification will improve this disconnect." The 29 occupations are:
The Chamber has long called for a more sensible approach to recognizing the skills newcomers bring to Canada. We've all heard the stories of trained doctors driving cabs and other professionals who can't work in their chosen field despite high demand for their service.
"That is changing. I'm thrilled to share the news that British Columbia is moving to help regulatory bodies improve the process of credential recognition," Chamber CEO Bruce Williams said. "We hear all the time from employers who are frustrated because they need workers but can't hire qualified newcomers because they were trained out of province." Upcoming legislation will streamline pathways for skilled people with international credentials while maintaining standards and safety. According to the provincial government, 387,000 newcomers are expected to enter the B.C. workforce, filling 38% of job openings over the next 10 years. 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. 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. 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. A new report by the Conference Board of Canada's Workplace Mental Health Research Centre found that your organization's policies on absenteeism could directly affect the productivity of employees. The study noted that it's difficult to measure presenteeism — workers pushing through their day despite feeling unwell physically or mentally. A lack of awareness and sense of trust between employer and employees was cited as a common reason for not addressing presenteeism.
“Without formal productivity measures, how can you tell that somebody is showing up and not delivering 100%?" the reports quotes one unnamed employer. "I don’t know that you can.” Most of the causes for presenteeism were related to symptoms of illness, stress and and trouble sleeping. Stigma around mental health continues to be a major factor for workers punching the clock when feeling unwell. There remains concerns about how disclosing an illness could impact their standing in the workplace. The report suggests organizations can take active strategies, such as accommodations for caregivers — predominately women — so they can remain on track for career growth and can overcome the many barriers they face. The conference board established the research centre to increase awareness and understanding of workplace mental health through research, analysis and dialogue. High-interest rates and uncertainty over the state of the economy are behind the tourism industry slowing down after its fast recovery from the pandemic. A report by TD titled "A Slow Road to Recovery for Canadian Tourism Spending," states the industry won't fully recover until about 2025.
Current tourism spending is at about 87% of where it was in 2019. "Although more price-conscious tourists could weigh on profit margins in the sector, slower demand growth may allow the industry time to overcome labour shortages," the report states. In BC, tourism employment is the highest its been since 2018 as employers work to overcome challenges finding and keeping staff. Greater Victoria tourism earns environmental rep Back in May, Greater Victoria received some love from a feature in Vogue about how we "became a sustainable travel hotspot." the article identifies a number of Chamber members who have helped make Greater Victoria green, including:
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." If the dialogue around remote work seems to have changed from "when is your team going back to the office to how can you adopt a hybrid workplace," you're not alone. The Canadian Chamber's Business Data Lab shows that North American cities are adapting to a new reality. Employers who are facing challenges finding and keeping workers are embracing workforce mobility as a solution. However, the change requires new strategies for ensuring the economic health and safety of urban cores that have lost jobs to the suburbs. The Chamber is working with our regional partners to rethink the role of Downtown Victoria so that it continues to be the vibrant centre of our regional economy.
"We know that our suburban downtowns are thriving, and that's good news for a lot of municipalities in Greater Victoria," Chamber CEO Bruce Williams said. "What we also need to do is make sure that Downtown Victoria continues as a major draw for tourists and a great place to live for residents. Of course, the way we do that is making sure we have a great climate for businesses to thrive so they can provide the goods and services that attract visitors and support locals." The board of the Capital Regional District has agreed to a $53.5 million plan that will widen and add lighting to sections of the Galloping Goose and Lochside regional trails. The sections are on the Galloping Goose between the Selkirk Trestle and Grange Road, and the Lochside Trail between the Switch Bridge and Borden Street.
The plan was developed over several years through public engagement. About three million people use the trails per year and the CRD says user volumes "will increase significantly due to trends in population growth and a shift toward active transportation and healthy lifestyles." Cyclists account for about 80% of traffic on the trail, compared to 20% for pedestrians. 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. A panel of experts has been tasked with developing a Community Safety and Well-Being Plan for the City of Victoria. The goal is to address multiple complex issues such as "declining civility and social cohesion, increasing social disorder, inadequate housing supply and homelessness, poverty, inequality, addictions, mental and physical health challenges, criminal activity and other factors."
The panel will work over the next 15 months to advise Victoria council on immediate interventions as well as long-term solutions. "I’m in frequent contact with the business community throughout the downtown and beyond and I’m consistently hearing that the impact of the pandemic is far from over," Fort Properties Ltd. CEO/co-owner Suzanne Bradbury said in the city's news release. "I believe that this is the right initiative at the right time and I’m honoured to bring a small business perspective.” Along with Bradbury, the panel includes:
In Greater Victoria, The Chamber serves as the voice of business by amplifying what we hear from our members. We can then further raise the volume by working with our national network to include the questions and concerns of more than 200,000 businesses across Canada.
A recent example is the 2024 pre-budget recommendations submitted by the Canadian Chamber to the federal government. The submission calls for for investment in trade-enhancing infrastructure, easing the burden of doing business, facilitating the transition to net-zero, enabling an innovative economy, attracting and retaining talent and taking a lead role in life sciences. To learn more about the work done by The Chamber's Public Policy and Advocacy committee, contact communications@victoriachamber.ca. The City of Victoria is considering a program that will help spruce up the look of businesses in the downtown core. The Business Façade Beautification Reimbursement Program is on the agenda for Thursday's council meeting. The city and the Downtown Victoria Business Association would split the cost of the program.
“This is an incentive to the property owners and the businesses on that block to join together and make their block look better," DVBA CEO Jeff Bray told the Times Colonist. "And I think when you do that over a handful of key blocks, it will be very noticeable.” The Township of Esquimalt and the Esquimalt Chamber of Commerce introduced the Business Façade Improvement Project this year. "As the Greater Victoria Chamber of Commerce, we support investment in our very important downtown centres," Chamber CEO Bruce Williams said. "They're not all the same, of course, but they all need to be safe communities. The best way to do that is to support community pride led by local business." One of the ways we can help employers address labour shortages is by improving regional transportation planning. Making commutes more convenient opens up areas outside of the core where housing costs can be less expensive. Efficient transportation is also vital for reducing harmful emissions.
The Chamber applauds the recent move by the Capital Regional District to prioritize transportation governance in Greater Victoria. The CRD Board has asked for feedback from municipalities, local areas, the province and relevant agencies to help with future decisions about how to shift modes of transportation, reduce emissions and better address congestion. The Capital Regional District board wants to help address our region's housing supply shortage by taking on more projects. The regional district can't add more to its plate unless it increases its borrowing authority. Its current cap is fully committed to new homes already under development.
“Our region’s housing crisis continues to need our dedicated perseverance to make progress,” CRD Board Chair Colin Plant said in a news release. “We need to be nimble, we need to be determined, and we need to signal a willingness to invest in solutions so we can quickly take advantage of new housing opportunities and provincial or federal government programs that will allow us to secure more units for those in need in this region.” The CRD intends to increase its borrowing authority through the Land Assembly, Housing and Land Banking service to $85 million to support new projects or the opportunity to invest in potential partnerships. The Regional Housing First Program is an example of the type of partnership that could benefit from an increase to the CRD’s borrowing authority. The program has brought 13 approved capital projects and 1,325 units to the region since 2019. The Chamber applauds the ongoing investment in new workers through the Adult Basic Education and English Language Learning Pathways. Camosun College received $240,625 in funds for 2022/23. and, this year, the province is providing $3.8 million to help students earn pre-requisites for post-secondary programs they need to meet career goals.
The provincial government released the first cohort of municipalities that have been targeted to increase housing supply. The City of Victoria as well as the District of Saanich and the District of Oak Bay are on the list.
The Housing Supply Act allows the province to set housing targets that encourage municipalities to make construction more efficient so housing can be built faster. Some of the suggested tools include updated zoning bylaws and streamlined approval processes. “The housing crisis is hurting people and holding back our economy, and we’re taking action with our partners to cut red tape and get homes built faster for people. Municipalities are our critical partners in addressing the housing crisis and building healthy, economically viable communities,” BC's Minister of Housing Ravi Kahlon said. “We welcome being part of a first wave of communities challenged to accelerate building homes for people," Victoria mayor Marianne Alto said. "These targets reflect the city’s own commitment to housing current and future Victorians.” The other municipalities are Abbotsford, Delta, Kamloops, North Vancouver, Port Moody, Vancouver and West Vancouver. A second cohort of 10 municipalities will be announced later this year. E-bike are being lauded as a game changer for getting commuters to make the shift from cars to active transportation. And, to help more people choose an e-bike as a way to get around, the province is offering rebates to all British Columbians over 19. Based on income, rebates range from $350 to $1,400, with $6 million available to subsidize as many as 9,000 e-bike purchases.
The program will be administered by the Scrap-It Society. Efficient regional transportation is one of the keys to attracting and retaining workers. E-bikes also produce less emissions than motor vehicles as well as being a healthier alternative for commuters — especially those with sedentary jobs. If you're interested, check out Chamber members who supply or service e-bikes. The minimum wage in this province makes a significant jump tomorrow, going from $15.65 to $16.75 an hour.
The increase was previously announced on April 5. "This is a cost increase that will affect more than people who pay or are paid minimum wage," Chamber CEO Bruce Williams said. "With inflation still very much dominating business news, we are concerned that this measure will prolong the pain by increasing prices for consumers and suppliers and prevent the Bank of Canada from lowering interest rates in the near term." BC now has the highest minimum wage of any province in Canada. How will this affect your business? Will you need to raise prices or reduce staff? Email communications@victoriachamber.ca. Your feedback helps inform The Chamber's advocacy efforts when we speak with decision makers in government. Creating more housing supply is key to making Greater Victoria more economically sustainable. Employers need staff, and employees need to be able to afford where they live. With homes in high demand in our region, we need all levels of government to be part of the solution.
The Chamber applauds the recent decision by the District of Saanich to create more homes in the municipality. The New Small Apartment Infill Zone will allow single-family lots to be redeveloped as multi-unit apartments. There are guidelines to ensure the zoning is used on appropriate lots. “We have heard that there’s an interest in building these in Saanich,” Saanich Mayor Dean Murdoch told the Times Colonist. “We’ve got a very large university and college campuses in Saanich and there’s a desire to build housing types like this that would serve that student population.” |
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