A new report finds Greater Victoria’s economy stuck is in neutral and describes how the region’s economy is in trouble, but also includes an outline for improvement.

The report by the South Island Prosperity Partnership (SIPP), shows the regional economy of Greater Victoria is in danger of stalling.

Aaron Stone, CEO of SIPP, said it’s time to build a regional economy focusing on the research institutions, post-secondary schools, and other partners.

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“The report really is a collaborative call to action, not just levels of government, but all the communities and champions,” Stone said.

It’s called, Igniting Momentum: Recommendations for Greater Victoria to Overcome
Economic Stagnation and Achieve Our Potential, and it concludes that Greater Victoria is at a tipping point.

Among the many factors it finds are contributing to a slowdown of the regional economy:

House prices are up 47 per cent since 2019.

Small businesses have been hit with lease hikes of 65 to 100 per cent.

The aging population is placing increasing demands on healthcare.

More people are leaving B.C. than arriving, with young people leaving in greater numbers.

And in 2025 office vacancies reached more than 11 per cent.

“I think the stagnation that we’re seeing in the economy more broadly is acute everywhere. But again, those indicators tell us through collaboration and through coordinated action we can actually overcome those,” Stone said.

It also finds that if different industries, and communities work together the impact can be lessened.

“The possibilities here are great. There is an opportunity here to build a regional economy,” Stone said.

Marianne Alto, mayor of Victoria, said the report, while accurate, is a little pessimistic.

“I don’t think it’s as dire as they are claiming, to be perfectly honest. But I also completely recognize that there is a lot of work for us to do as long as we do it together,” Alto said.

She said one change that would have an immediate impact on the health of the downtown economy would be provincial employees coming back to the office.

“One of the things you could look at which would have a significant impact, I think, is to as the city has called for for some time, is to actually have its workers come back to work downtown,” Alto said.

The report isn’t all negative.

It says the region has many natural assets, and a thriving tech sector, that could help turn the volatility into opportunity.

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