From an economist’s perspective, affordability is fundamentally about the relationship between incomes and the cost of living. Housing is important, but it is only one part of the equation. A city becomes more affordable by raising incomes, lowering costs, and increasing productivity.
For Victoria, we need to focus on seven affordability drivers.
1. Increase Household Incomes (Highest Impact)
The most sustainable way to improve affordability is to increase earnings.
Victoria’s GDP per capita is about 11% lower than Vancouver’s and about 11% lower than Kamloops, suggesting room to improve productivity and wages.
Focus on growing:
- Technology
- Marine industries
- Life sciences
- Tourism
- Professional services
- Clean technology
- Small business growth
Target
- Increase GDP per capita by 20% over 10 years.
- Raise median household income faster than inflation.
2. Increase Housing Supply
Housing accounts for roughly one-third of household spending.
Victoria needs:
- More market housing
- Purpose-built rentals
- Co-ops
- Non-profit housing
- Workforce housing
- Missing-middle housing that fit into neighbourhoods
- Secondary suites
The objective is to increase supply across every housing type.
3. Reduce the Cost of Government
Property taxes, fees, permits, and development charges eventually increase rents and housing prices.
The City should:
- Improve efficiency and productivity
- Reduce permit times and development costs
- Digitize approvals
- Control spending growth
- Eliminate unnecessary regulation
Savings are ultimately passed on to residents and businesses.
4. Improve Transportation Efficiency
Transportation is the second-largest household expense.
Reducing transportation costs means:
- Better transit
- Safer cycling
- Improved traffic flows
- Smarter parking management
- Mixed-use neighbourhoods
- More people living closer to work
Time stuck in traffic is also an economic cost. Idling cars and trucks tuck in traffic increase the negative impact on our environment.
5. Improve Public Safety
Crime and disorder create hidden costs:
- Higher insurance
- Theft
- Security expenses
- Lost tourism
- Lost investment
- Business closures
Safer cities are less expensive cities.
6. Improve Health Care Access
Thousands of residents in Victoria lack family doctors.
Poor access increases:
- Emergency room use
- Wait times for care
- Lost work time
- Employer costs
- Caregiver burden
Community health centres in Victoria could significantly improve productivity while reducing long-term health costs.
7. Build a Stronger Local Economy
Victoria imports much of what it consumes.
Supporting:
- local manufacturing
- food production
- innovation
- entrepreneurship
- tourism
keeps more dollars circulating within our regional economy.
What should Victoria measure?
I would recommend an Annual Affordability Dashboard with these indicators:
| Measure | Current | 2035 Target |
| Median household income | ↑ | +30% |
| GDP per capita | ~$58,600 | $70,000+ |
| Housing affordability | Improve | Top 5 in B.C. |
| Rental vacancy rate | ~Healthy 3–5% target | 3–5% |
| Property tax increases | Variable | ≤ Inflation |
| Average permit approval | Months | <90 days |
| Family doctor attachment | Improve | 95%+ |
| Downtown commercial vacancy | Reduce | <6% |
| Crime severity | Reduce | -30% |
Summary
One of the biggest misconceptions in public policy is that affordability is only about housing. Affordability is determined by the interaction of many factors:
- Income
- Housing costs
- Taxes and fees
- Transportation
- Health care
- Public safety
- Local government efficiency
- Economic productivity
If Victoria can improve all of these together over the next decade, it could become one of Canada’s most affordable and livable mid-sized cities—not because prices would necessarily fall dramatically, but because incomes would rise, costs would grow more slowly, and residents would receive better value for the taxes they pay.
The Five Outcomes
These ideas align well with the five outcomes:
- Grow the Economy.
- Restore Public Safety.
- Solve Homelessness with Housing, Health Care, and Recovery
- Build Great Neighbourhoods.
- Make City Hall Work Better.
Together, these outcomes reinforce the theme: Delivering Results That Matter.
What This Means for Victoria
Victoria doesn’t necessarily need to become cheaper—that is difficult in a desirable coastal city. Instead, it should become more affordable by:
- Raising household incomes through a stronger economy.
- Increasing housing supply to moderate price growth.
- Reducing permitting delays and development costs.
- Improving transportation efficiency to lower household expenses.
- Making government more efficient to keep taxes and fees under control.
- Improving public safety to attract investment and support local businesses.
This reinforces a key message:
Affordability isn’t just about lower prices—it’s about higher incomes, lower costs where government has influence, and a stronger local economy. That is how Victoria can improve its affordability while preserving the qualities that make it one of Canada’s most desirable places to live.