Development in Nanaimo: Emerging Growth & Affordability Mandates

Written By Dorien van Tol

Nanaimo is emerging as a key growth centre on Vancouver Island, driven by population growth and housing demand.

The city is actively encouraging development, particularly in designated growth areas, while also placing increasing emphasis on affordability and infrastructure capacity.

For developers, Nanaimo presents strong opportunity, but also requires careful planning around servicing and policy alignment.

OCP Growth Centres and Density

Nanaimo’s Official Community Plan identifies key growth centres where density is encouraged.

Primary Growth Areas

  • Downtown

  • Regional Town Centres

  • Transit corridors

These areas are intended to support higher-density residential and mixed-use development.

Projects located within these areas are more likely to align with municipal priorities.

Servicing and Infrastructure Constraints

One of the key challenges in Nanaimo is infrastructure capacity.

Servicing constraints, including water, sewer, and transportation, can impact both timelines and feasibility.

What Developers Should Consider

  • Capacity of existing infrastructure

  • Required upgrades or contributions

  • Timing of servicing availability

Infrastructure limitations can delay projects if not identified early.

Affordable Housing Expectations

Like many BC municipalities, Nanaimo is placing increased focus on affordable and attainable housing.

Key Trends

  • Encouragement of rental housing

  • Support for workforce housing

  • Consideration of affordability in approvals

While policies are still evolving, projects that address affordability are generally better received.

Navigating Approvals in Nanaimo

Compared to larger urban centres, Nanaimo’s approval process is generally more streamlined.

However, alignment with the Official Community Plan and infrastructure capacity remains critical.

For a broader overview, see:
How the Development Approval Process Works in BC

Key Risks and Opportunities

Opportunities

  • Growing population and housing demand

  • Support for density in growth centres

  • Less competition than larger markets

Risks

  • Servicing limitations

  • Evolving affordability requirements

  • Market sensitivity

Conclusion

Nanaimo offers strong potential for growth, particularly for multi-family and mixed-use development.

Projects that align with growth centres and address infrastructure and affordability considerations are best positioned for success.

Dorien van Tol
Next

How to Evaluate a Multi-Family Development Opportunity