Housing affordability remains one of the most urgent issues in British Columbia. To respond, the Province has adopted a clear strategy to boost housing supply. Through the Housing Supply Act and Housing Supply Regulation, the Province can set housing targets for municipalities with high projected growth and significant housing needs. These targets are not just aspirational goals. They are measurable, enforceable, and come with specific reporting requirements.

On September 1, 2025, a fourth group of municipalities will officially begin working toward five-year housing targets. In total, this group is expected to deliver 38,930 new homes across ten communities. To understand the significance of this, it is important to look at the policy framework, the progress made by earlier groups, and the specific expectations placed on this new round of municipalities.

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The Housing Supply Act and Municipal Responsibilities

The Housing Supply Act came into effect in May 2023. It was created in response to increasing demand for housing in fast-growing parts of British Columbia. The Act gives the Province authority to set housing targets in communities where demand is most acute and where population growth projections show the need for additional supply.

Municipal governments remain central to the planning process. They are responsible for creating housing needs reports, official community plans, regional growth strategies, housing action plans, and zoning bylaws. Municipalities are also tasked with creating the right conditions for development by updating regulations, streamlining approvals, and ensuring infrastructure supports new growth.

Under the Act, municipalities issued housing target orders must provide progress reports every year. These reports are due within 45 days of the close of the reporting period. If a municipality falls short and does not demonstrate satisfactory progress, the Minister of Housing and Municipal Affairs may appoint an advisor. The advisor can issue directives requiring the municipality to enact or amend bylaws, or to approve or reject permits. In more serious cases, the Province may issue an Order in Council to enforce compliance.

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Progress from the First Three Groups of Municipalities

Before examining the newest group, it is important to review the results of the first three groups of municipalities that received housing target orders.

• In the first group, several municipalities exceeded their targets within the first year. Kelowna achieved 110 percent of its first-year target, delivering more than one third of its five-year goal in just twelve months. Esquimalt reached 277 percent of its first-year target, and Central Saanich went even further at 395 percent. These examples show how quickly some communities can move when local planning and development processes are aligned.
• Across the first 30 municipalities, more than 16,000 net new homes have already been delivered. This includes over 8,300 homes reported in the first year of the program and another 7,800 homes added during the first six months of monitoring for the second and third groups.
• Municipalities in the second and third groups are expected to deliver more than 17,500 homes combined over five years. Importantly, this includes more than 4,200 below-market rental units, demonstrating that affordability is built into the targets as well as overall supply.

Not all municipalities are on pace. Some communities are struggling due to land availability, development constraints, or infrastructure limitations. Still, the early data confirms that the program is already adding thousands of homes to the provincial supply.

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The Fourth Group of Housing Targets

The fourth group of municipalities was announced in May 2025. Effective September 1, these communities will begin working toward their housing targets. Together, the ten municipalities are expected to deliver 38,930 homes over the next five years.

The breakdown of targets is as follows:

• Burnaby: 10,240 homes
• Coquitlam: 6,481 homes
• Courtenay: 1,334 homes
• Township of Langley: 6,596 homes
• Langford: 2,993 homes
• Penticton: 908 homes
• Pitt Meadows: 727 homes
• Richmond: 6,753 homes
• Squamish: 1,069 homes
• Vernon: 1,829 homes

These targets are calculated to represent 75 percent of the estimated housing need for each community. The Province has also issued guidelines for each municipality. These guidelines recommend the mix of unit sizes, the number of rental versus ownership units, and the proportion that should be below-market rentals or rental units with on-site supports.

Of the 38,930 homes expected in this round, more than 14,000 are designated as below-market rentals. This focus on affordability reflects the Province’s goal of balancing overall supply growth with housing that is accessible to a wide range of income levels.

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Municipal Challenges and Differences

While many communities welcome the targets, not all municipalities face the same conditions. Some have already demonstrated their ability to build at a rapid pace. For example, Burnaby, Langford, and Penticton are already considered leaders in advancing housing supply, refining local policies, and approving projects at scale.

Others face significant obstacles. The most notable case is Pitt Meadows, which has formally pushed back against its target of 727 homes over five years. The city has raised concerns about its limited land base, with approximately 80 percent of its land designated as agricultural reserve. Additional constraints include floodplain restrictions, high groundwater levels, limited transit access, frequent rail blockages, and federal airport regulations that limit building heights.

Pitt Meadows argues that while municipalities can set policy and adjust zoning, the actual delivery of homes depends on the private sector and non-profits. This highlights an important challenge within the program. Municipal governments can remove barriers and speed up approvals, but actual construction depends on factors outside their control, such as market conditions, financing, and construction costs.

This variation means some municipalities will likely exceed their targets, while others may need closer oversight and provincial support.

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Provincial Strategy and Federal Coordination

The housing targets are one part of a larger provincial strategy. They fall under the Homes for People action plan, which represents a historic $19 billion housing investment. The Province is aligning these targets with negotiations at the federal level. Communities that meet or exceed their targets will be better positioned to receive infrastructure and amenity investments, helping to ensure that new housing supply is matched with transportation, utilities, and community facilities.

By focusing targets on areas with the greatest need and projected growth, the Province is seeking to address both current shortages and future population pressures.

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Implications for the Okanagan

Two municipalities in the Okanagan are part of the fourth group: Vernon and Penticton.

• Vernon has been assigned a target of 1,829 homes over five years.
• Penticton has been assigned a target of 908 homes.

These targets reflect the growing demand for housing in the Okanagan region. With population growth driven by both lifestyle migration and local economic activity, supply has often struggled to keep up. The inclusion of Vernon and Penticton ensures that the Interior will benefit directly from the province-wide effort to expand housing options.

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Conclusion

British Columbia’s fourth round of housing targets represents a significant step in tackling the housing supply gap. With 38,930 new homes expected across ten municipalities, including more than 14,000 below-market rentals, the Province is pushing forward on both supply and affordability. Early results from the first three groups show that progress is real, with more than 16,000 new homes already delivered. Some communities, like Kelowna and Esquimalt, have exceeded expectations, proving that rapid results are possible. Others, like Pitt Meadows, remind us that unique challenges can slow delivery.

The housing target program is still young, but it is already reshaping how housing is planned and delivered across British Columbia. The coming five years will be critical in determining how well the Province can keep pace with population growth and housing demand.

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At Coldwell Banker Horizon Realty, we follow these developments closely. Whether you are looking to buy, sell, or invest in Vernon, Penticton, or other communities in the Okanagan, our team is here to provide expert guidance. Connect with us today to learn how new housing targets may influence local markets and to explore the opportunities that align with your goals.

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To learn more about the municipal housing targets, visit: https://www2.gov.bc.ca/gov/content/housing-tenancy/local-governments-and-housing/housing-targets