Recently the provincial government announced that it would be supporting a $201M student housing project at the University of Victoria. For 620 units, that equals $324,193 per unit, not including the land cost, which would add at least another $100,000 per unit, or about $425,000 per unit.
If these units weren’t subsidized by the taxpayer, the landlord would need to charge at least eight per cent to cover mortgage costs, taxes, utilities, condo fees and maintenance, not to mention allowing for vacancies and profit. At eight per cent, the rent for a $425,000 unit would have to be $34,000 a year, which is $2,833 per month just to break even.
Is this the new minimum for affordable housing in Victoria?