CPABC: Terrace housing starts slow, but major project investment continues to boost economic activity in Northwest B.C.

SMITHERS, British Columbia, April 03, 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 75 housing units that began construction in Northwest B.C.'s two largest municipalities in 2022, a 28.6 per cent decrease compared to 2021.

"With much higher interest rates weighing down investment, it is not overly surprising to see the number of housing units started in Terrace slow in 2022," said Jeanne MacNeil, CPA, CA, partner at Edmison Mehr Chartered Professional Accountants. "That being said, the number in started 2022 was slightly above the longer-term average."

Last year, the 75 housing units that began construction in Prince Rupert and Terrace was down from 105 in 2021, but remained above the average of 71 started from 2016 to 2020. Breaking it down by municipality, in 2022 there were 58 housing starts in Terrace, down from 88 in 2021; and 17 in Prince Rupert, the same as in 2021.

While the Canada Mortgage and Housing Corporation doesn't track data for Kitimat or Smithers, in Q3 2022 a 44-unit housing development began construction in Kitimat to house women and children leaving violence.

"It was very encouraging to see a major new housing project start in Kitimat to help house those who are most vulnerable," continued MacNeil. "And beyond housing, our region continues to benefit from the largest major project activity in the province."

The total value of all major projects that were proposed, under construction, and on-hold in Northwest B.C. was $167.8 billion in Q3 2022, down 3.3 per cent compared to Q3 2021. The Ridley Island Export Logistics Platform ($250 million), Stuart Lake Hospital Replacement ($158 million), and Treaty Creek Terminal ($109 million) all started construction in 2022, while the largest project under construction remained the LNG Canada Facility ($36 billion).

There were 49 proposed projects worth $115.4 billion in Q3 2022, the largest of which were the Kitsault LNG Facility ($34 billion), Kitimat Clean Oil Refinery ($22 billion), and ESE Synthetic Crude Pipeline ($18 billion).

"Major projects create good jobs, set the region up to prosper, and provide important services for residents. In addition, the several new major projects getting underway last year should help stabilize our regional economy in this period of high interest rates and global economic uncertainty," concluded MacNeil. "However, a continued area of concern is in the forestry industry, such as the indeterminate closure of the Canfor mill in Houston which will impact over 300 jobs directly and more indirectly. This industry is critical to the region, and government policies need to create greater certainty for business and investment decisions."

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.