Lack of Housing is Really Lack of Affordable Housing
We hear a lot about build, build, build everywhere, there’s a housing “crisis.”
It’s time to calm down. There’s enough land within North Cowichan’s Urban Containment Boundary to fulfill housing demand for the next 20 years. And currently, the municipality holds thousands of building applications.
This means there’s no need to push housing developments into rural land. And certainly, not for homes selling at $1 million or more that we see proposed. Homes that expensive are not for the average local household, but for people with greater means, moving to our municipality.
For households here, the median income is around $80,000. Such a household can generally afford a home costing around $400,000. But the average price of a home in North Cowichan is roughly $733,000, and an average strata price is $443,000.
This example illuminates what we are actually suffering from: not a lack of housing, but a lack of affordable housing as home prices, and rental costs, have grown much faster than average wages. In the municipality’s 2023 study, “394 new affordable units were needed in the next five years.”
Average rents roughly increased by 37% in the five years leading up to 2025. More recently, it costs roughly $1,662 a month for a one-bedroom apartment, and around $2,000 for a two-bedroom. That would mean that the household would need to earn more than $66,000 a year for the one-bedroom, and $84,000 for the two-bedroom, not including utilities. The three bedroom would be out of reach for the median income household (of $80,000), while 50% of households are not even earning that income.
If more affordable housing for sale and rental was built, young people could gain a stable homestead, and not have to move out of the area. Seniors and others could find a home with a mortgage or rental costs that they could manage to pay.
As reported, there’s a direct relationship between lack of affordable housing and homelessness.
“Lack of affordable housing is leading to more seniors, youth and families losing their housing, despite many of them having jobs or collecting a pension.” —The Discourse, 2/15/24
Let’s look at the wider benefits of affordable housing. They ripple into our community and society at large.
Affordable Housing helps to reduce poverty and increases economic mobility
Affordable housing is defined as spending 30% or less of household income on the cost of shelter (whether as a renter or an owner).
In North Cowichan, as of a few years ago, 20% of households spent more than that. These people are pretty much living paycheck to paycheck. Any illness, loss of a job, or other disturbance in their lives may mean that they could find themselves without a home. 12% of the North Cowichan households spent more than 50% of their income! That’s around 500 households, not counting homeless individuals.
After mortgage or rental payments, people living in an affordable homes have more to spend on essential and other needs, along with the opportunity to build their savings. Studies have shown that an affordable, stable home reduces childhood poverty and provides a space for children to thrive. Importantly, it diminishes the chances of people becoming homeless due to a change in economic circumstances.
A significant number of individuals have fallen into homelessness due to high rent or high mortgage payments.
Increasing access to affordable housing bolsters economic growth.
With more income to spend beyond the cost of rent or mortgage, plus utilities, these households help fuel the local economy and job creation. Research also shows that without affordable housing, families have constrained opportunities to increase earnings, and they estimate that in the U.S., GDP between 1964 and 2009 would have been 13.5% higher if families had enjoyed better access to affordable housing.
What Steps has the Municipality of North Cowichan Taken to Support Affordable Housing?
Affordable Housing Policy and Related Reserve Fund
Back in the Winter of 2020, then Councillor Douglas noted a “critical lack of affordable housing.” He and the Cowichan Housing Association came together to identify different tools North Cowichan could use for affordable and attainable housing.
In the Summer of 2021, staff summarized the tools and set up potential structures. The 2022 Official Community Plan incorporated a number of these. In 2023, work started on a separate Affordable Housing Policy.
In July of 2023: At the July 11 meeting of the Committee of the Whole and the regular Council meeting on July 19, the draft Affordable Housing Policy was approved by votes of Mayor Douglas and Councillors Justice, Istace and Toporowski.
Councillors Manhas and Findlay voted against the draft Affordable Housing policy. (Councillor Caljouw was absent.)
On August 20, 2025, the final Affordable Housing policy was approved.
In favour were: Mayor Douglas and Councillors Justice, Istace, Hogg, and Caljouw.
Against were: Councillors Findlay and Manhas.
Unlike many other communities on Vancouver Island, nowhere in the final policy was a requirement to have an “inclusionary” requirement for a certain percentage of new apartment dwellings to be priced at an affordable rent.
One of the final policy components was to adopt a requirement for developers to make very modest contributions (“interim Community Amenity Contributions”) toward a Reserve Fund for affordable housing.
February 4, 2026 — Developer Contributions for Affordable Housing
Council considered a new Community Amenity Contribution (CAC) policy, which asks developers who receive increased development rights to contribute toward community needs, including North Cowichan’s Affordable Housing Fund.
During the debate, Councillor Bruce Findlay argued against the affordable-housing contribution, saying:
“I’m not in favour of the affordable housing policy.”
He then moved to remove the Affordable Housing section from the policy, saying he objected to putting “hundreds of thousands of dollars” into affordable-housing funding.
Councillor Tek Manhas seconded Findlay’s motion.
The motion to remove the contribution failed.
Mayor Rob Douglas and Councillors Christopher Justice, Chris Istace, Mike Caljouw and Tek Manhas voted to keep the affordable-housing contribution. Findlay voted to remove it.
Council then adopted the Interim Community Amenity Contribution (CAC) Policy for developers to pay. It was approved on February 4, 2026.
Affordable Housing Projects:
At 3191 Sherman Road, a 92-unit cooperative housing is under construction and should be completed by early 2028.
At 2988 Elliott Street in Chemainus, 58 affordable apartments are planned and a feasibility study is underway. Earlier this year, the province slashed funding for affordable housing projects in its reduced 2026 budget. This project is on hold.
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