With a construction value of over $45 million, the 195-unit apartment building currently being built at 235 Wallace St. was one of the most significant residential developments in Nanaimo last year. (City of Nanaimo)

By Jordan Davidson

CONCENTRATED HOUSING

Single-family builds down in Nanaimo while denser housing units increase

Apr 24, 2024 | 5:36 AM

NANAIMO — Housing projects continue to be at the forefront of construction plans in Nanaimo, despite rising construction costs.

The 2023 development and housing overview was presented during the Monday, April 22 Nanaimo council meeting, showing construction of multi-family homes far outpacing other housing developments.

Manager of current planning Lainya Rowett said new single-family units have been on a steady decline since 2016, with increasing construction costs one of the factors.

“As well as fewer lots being created through subdivisions as we see different forms of housing provided through multi-family projects. But with our single-family starts, we do see a continued provision of secondary suites. In fact, continuing to be on trend with 60 per cent of single-family homes containing secondary suites.”

Only 124 single-family units were built in 2023, with the average needed to keep up with the regular increase in population just under 250.

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But plenty of new living spaces will be opening in Nanaimo soon, as 1,170 building permits were issued last year, just over the goal of 1,155.

The majority, 912, were multi-family units, with single-family dwellings accounting for 124, and secondary suites representing 122.

The total value of construction permits last year was $365 million, with residential units making up just over $300 million, about $25 million higher than the nine-year average.

Nanaimo saw the second-highest construction value total on record in 2022 at $410 million.

Comparing new construction starts from for single-family and multi-family homes in 2022 to 2023 shows similair building patterns. (City of Nanaimo)

Rowett said when compared to 2022, last year continued the trend of cluster housing developments city-wide.

“Another trend we are seeing is in our urban centres and along our major corridors, so opportunities for people to live closer to schools and transit routes and parks and recreation amenities. So that trend has certainly continued into 2023.”

In the downtown, construction is currently ongoing on the $45 million rental housing development at 235 Wallace St. in the Old City Quarter, promising 195 market rental units.

The building of a 145-unit seniors housing project at 388 Machleary St., valued at almost $40 million, began in February, while a 163-unit rental building at 340 Campbell St. is also being built, at the site of the former Caledonian Clinic.

Nanaimo’s north end also had new developments begin last year, including a pair of five-storey, apartment buildings at 6981 and 6985 Island Hwy. N, with 149 units between them, worth around $34 million.

Non-market housing
One area the Harbour City is falling behind on is the number of non-market housing units needed annually, with only 121 units issued an occupancy permit last year while 40 had building permits issued.

Non-market housing consists of subsidized social housing which can have a number of conditions, including rent being lower than the average market price for those making under $40,000 a year, and featuring on-site support for people transitioning out of homelessness.

Manager of community planning Lisa Brinkman said achieving the needed average of 525 non-market units annually can be challenging, but the City will find a way.

“We found 1,452 social housing units do exist, and there may be more, these are just the ones we identified so far. Also, we found that there are 338 supportive housing units in this City. And we also found that there are 259 temporary housing beds, these are beds offering emergency and support services for people who are homeless or at risk of becoming homeless… and these include transition houses and recovery centres.”

She said it would also require significant resources from the provincial and federal governments.

Other major housing projects still in development includes an 87-unit mix of supportive and affordable housing units at 250 Terminal Ave, made possible thanks to an agreement between the City and BC Housing

A rezoning application is expected to be presented to Council in May.

The province announced in January three years of funding to continue supporting the transitional housing at 250 Terminal Ave. N, as well as fund 50 additional temporary housing units in the city’s Chase River area.

A full list of all the housing projects across B.C. is available here at the BC Housing website.

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jordan@nanaimonewsnow.com

On Twitter: @JordanDHeyNow