Why Fewer Homes Are Being Built in Victoria, BC (And What Happens Next)

New home construction is slowing in Greater Victoria, with housing starts down approximately 30% in the first seven months of 2026 compared to the same period last year, according to CMHC figures reported by the Victoria Residential Builders Association. But what is contributing to the slowdown, and what could it mean for Victoria's housing market in the years ahead? In this video, I look at some of the factors affecting new home construction across Greater Victoria, including rising construction costs, development fees, financing conditions, and the challenges builders face when bringing new projects to market. We also explore the relationship between housing starts and future housing supply, why fewer homes being built doesn't necessarily indicate falling property values, and what buyers and homeowners should consider when interpreting these numbers. While a slowdown in construction can have implications for the future supply of homes, it also raises important questions about housing affordability and the region's ability to accommodate growth. As with most real estate trends, there is more to the story than a single statistic. Have questions about buying or selling in Greater Victoria? CONTACT Call or text: 250-634-2141 Email: Alex@NorthPacificHomes.ca Website: https://northpacifichomes.ca Chapters 0:00 Greater Victoria's housing construction slowdown 1:00 Putting the numbers into perspective 1:49 Rising construction costs 2:11 Development fees and their impact 2:40 Housing demand and financing conditions 3:27 Permitting and approval timelines 3:52 What fewer housing starts could mean for future supply 4:55 The impact on housing affordability 6:00 What could change the outlook 7:46 Final thoughts Alex Hughes is a REALTOR® and Personal Real Estate Corporation with North Pacific Homes Group at eXp Realty, serving buyers and sellers throughout Greater Victoria and Southern Vancouver Island. With a background in the building materials industry, Alex brings an understanding of construction and housing market dynamics to his work in real estate. Source: Canada Mortgage and Housing Corporation (CMHC), housing starts data for January–July 2026, as reported by the Victoria Residential Builders Association in August 2026. Figures reflect the reporting period discussed and may have changed since publication. #VictoriaBC #VictoriaRealEstate #GreaterVictoria #HousingMarket #HousingSupply