VICTORIA, BC — May 10, 2026 — A new analysis from Homes for Living (HFL), a volunteer group of housing affordability advocates, reveals that many Greater Victoria municipalities are failing to meet minimum provincial guidelines for legalizing small scale family-friendly infill housing in residential areas.

The Missing Middle Report Card shows a gulf between the Provincial intent to end apartment and townhome bans and the reality of local municipal implementation. Despite new provincial laws requiring local governments to allow townhomes, walk-up apartments, and other family housing, local zoning regulations show that local "poison pill" regulations are making this housing very difficult to build.

Homes for Living examined the zoning bylaws for each Urban Core and Westshore municipality and graded them against provincial guidelines. Saanich and Esquimalt came out on top, with a ‘B’ Grade. Two municipalities, Oak Bay and Colwood, received an ‘F’.

“We congratulate Saanich and Esquimalt for implementing their small scale housing bylaws largely in the spirit of the province’s guidelines,” says Leo Spalteholz, a housing researcher and President of Homes for Living.”We urge them not to falter. That progress needs to be protected. Overall, our region would be in a better place for housing affordability if everyone copied their homework.”

While the province has mandated that four to six units be allowed on standard residential lots under the small-scale multi-unit housing initiative, the Missing Middle Report Card illustrates how municipalities are legalizing the number of units but limit the size and shape of buildings or number of parking spaces to such a high degree that they are impossible to build.  Parking spaces can add more than $100,000 per space to the cost of a new home, according to a report by Altus Group. 

Sam Holland, Director with Homes for Living and developer of the report card notes: “The province set a floor, but local municipalities are treating this floor like a ceiling. It should not be more difficult to build a small multifamily home than to build a single family home on any lot in the Greater Victoria area, and overly restrictive rules will keep family-suitable homes expensive and in short supply.”

The Homes for Living project serves as a transparency tool for voters and local leaders. The Report Card specifically grades each municipality’s “Small-Scale Multi-Unit Housing” bylaw against provincial guidelines for legalizing family and starter homes such as townhomes, walk-up apartments, and houseplexes.

While prices have fallen somewhat in the last two years for studios and one-bedroom rentals, prices for three and four bedroom rentals have stayed high. Homes for Living argues that this is in part because of a continued reluctance to remove barriers to family housing in established neighbourhoods. “It’s a lot easier to build three and four bedroom homes in small apartment buildings as they naturally fit better as corner units,” says Spalteholz. “We need to tackle the enormous barriers to create these family homes or rents will stay high.”