CPABC: Cariboo housing starts down from record level in 2021, major project investment continues to provide economic boost

PRINCE GEORGE, British Columbia, March 31, 2023 (GLOBE NEWSWIRE) -- According to BC Check-Up: Invest, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on investment trends across the province, there were 600 housing units that began construction in the Cariboo region's three largest municipalities, down by 25.3 per cent compared to 2021.

"Despite the number of housing starts falling last year, that's from a record set in 2022 and the 600 units started were well above historical trends," said Corey Naphtali, CPA, CA, partner at KPMG Canada. "The situation varied across the region, with declines in Quesnel and Prince George while Williams Lake saw strong growth."

The 600 housing units started in 2022 were down from 803 in 2021 but above the annual average of 463 starts between 2016 and 2020. In total, there were 378 attached units started across the region in 2022, down 29.2 per cent compared to 2021. In comparison, there were 222 detached units which began construction in 2022, down 17.5 per cent.

Breaking it down by municipality, there were 451 housing starts in Prince George (compared to 665 in 2021), 38 in Quesnel (117 in 2021), and 111 in Williams Lake (21 in 2021).

"The decrease in housing was largest in attached units, such as condos, townhomes, and apartments. This is in part explained by the strong demand for detached units for much of the last two years," continued Napthali. "Outside housing activity, the region's economy continued to benefit from a significant amount of major project investment, particularly related to resource and infrastructure developments."

The total value of major capital projects in the Cariboo was $16.7 billion in Q3 2022, down $33 million compared to Q3 2021. Of the total, $4.7 billion (28.0 per cent) were projects under construction, including the recently started Simon Fraser Bridge Rehabilitation ($21 million, started Q1 2022) and the largest project remained the $4.5 billion Trans Mountain Pipeline Expansion. In Q4 2021, the Quesnel Junior School Replacement was completed ($52 million).

The Cariboo had 24 major projects in the proposal stage with an estimated cost of $11.9 billion. The largest recent proposal was the Cariboo Road Recovery Project, valued at $146 million. The University Hospital of Northern British Columbia Patient Care Tower ($600 million) is expected to start this year.

"The Cariboo will benefit from the major projects underway and expected to start in the short-term, which will advance services such as healthcare, improve access to natural resources, and better connect our region," concluded Naphtali. "In addition, given high interest rates are anticipated to weaken new investment, these established projects are an important stabilizer for our economy."

To learn more, see www.bccheckup.com.

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About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 39,000 CPA members and 6,000 CPA students. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.