3,100 housing units needed

The city will require over 3,100 housing units to meet the current and anticipated accommodations demand over the next 20 years, according to an interim housing needs report.

Researched and written by Makola Development Services, the City of Nelson Housing Needs Report found that by 2044 the city will have to add 3,104 estimated units of housing to meet the required demand, based on the total demand from the base year (2021).

All municipalities and regional districts in British Columbia are required to complete an interim report by Jan. 1, 2025, using the standardized housing needs report method as outlined by the province.

The first full housing needs report is due by Dec. 31, 2028, and must be updated every five years thereafter. On Oct. 8 — during its regular business meeting — city council directed staff to “account for the 20-year anticipated demand projections” when updating the Official Community Plan (OCP) and zoning bylaws, as required by the Local Government Act.

The interim report follows a similar report from 2020.

“The updated 2024 report highlights a growing population with projections of 15,470 residents by 2041. It identifies a housing deficit, estimating a need for 3,104 additional units by 2041,” noted city director of Development Services and Climate Leadership, Sebastien Arcand.

Since the first report, Arcand noted that housing costs have increased, with median apartment rents increasing by 22 per cent and home prices rising by 36 per cent. He estimated about 10 per cent of households are in core housing need, with higher rates among vulnerable groups.

“The report emphasizes the necessity of proactive planning and partnerships to address these challenges and ensure affordable housing for all residents,” he said in the report to council on Oct. 8.

The intent of the housing needs report is to guide “growth, policy, and long-term planning to meet the community’s evolving housing needs.”

Required reporting

In 2023, amendments to the Local Government Act introduced new requirements for housing needs reports.

A local government must now use an established methodology to identify the five- and 20-year housing need within the community and must update its official community plan and zoning bylaws to accommodate expected demand.

Communities may choose to complete an interim housing needs report including only the new information, or can complete a full housing needs report update. The City of elected to complete a full housing needs report update.

The body of the report contains all information required by legislation and should remain relevant until the next release of Census data, projected for 2027 or 2028.