Numerous apartment buildings are under construction throughout the RDN but the housing situation for many remains dire. (Spencer Sterritt/NanaimoNewsNOW)

By NanaimoNewsNOW Staff

housing crunch

RDN report claims housing construction keeping pace with demand but cost still a concern

Jun 12, 2020 | 6:12 AM

NANAIMO — A lengthy Regional District of Nanaimo report claims the ongoing housing construction boom will continue but high costs will remain an issue.

The Regional Housing Needs Report presented on June 9 and based on data up to 2018, said the region will need approximately 600 units built each year. This includes in Nanaimo, Lantzville, Parksville and Qualicum Beach.

Under a high growth scenario, analysts expected approximately 941 units will be built each year, with a shift toward apartments and away from single-dwelling homes.

Back in 2018, building permits for apartments surpassed previous years to 832.

Rental vacancy rates from 1.7 per cent in 2016 to 2.4 per cent in 2018. A healthy vacancy rate is three per cent, the report said.

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In the first six months of 2019, the City of Nanaimo had approved building permits for roughly 1,300 housing units, though not all would come online within the year.

The $300 million spent by the end of June, 2019 was three times greater than the entire construction value of 2018 projects.

Despite the increasing housing stock, RDN manager of long range planning Kim Fowler said the housing being built is not an option for many.

“The average re-sale prices have gone up significantly, which shouldn’t be a surprise for those of us in the market. The gap between income and affordable housing is continuing to grow, due to the increase in cost of rentals and homeownership.”

Priorities from the report included creating option to more quickly build housing, such as manufactured or modular housing and analyze how to boost affordable housing.

The City of Nanaimo’s affordable housing strategy was endorsed in fall, 2018, focused on attracting more rental market construction.

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