CPABC: Housing starts in Nelson hit a record high in 2023, major project activity falls across the Kootenays

CRANBROOK, British Columbia, April 16, 2024 (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 292 housing starts in the Kootenays' largest population centres in 2023, compared to 309 in 2022. It was the first year that data became available for Trail, where 40 of the 292 starts were recorded.

"Housing starts in Cranbrook fell off significantly in 2023, while Nelson maintained the strong activity we saw last year," said Mike Calder, CPA, CA, partner at BDO Canada. "Seeing Trail reach the population threshold to be included in the annual counts speaks to the rapid population growth we've seen over the last couple years."

The 252 units started in Cranbrook and Nelson in 2023 represents an 18.4 per cent drop year-over-year, with Cranbrook accounting for the entire decline. There were 73 starts (-44.7 per cent) in Cranbrook, 179 (+1.1 per cent) in Nelson, marking a new record high, and the remaining 40 were in Trail.

Of the total started last year, 166 were attached units (up 20.3 per cent), such as apartments and condos, and 126 were detached units (down 26.3 per cent).

"Overall, there was a dip in new housing construction region-wide," continued Calder. "On the major project side of things, the region's investment outlook also softened in 2023."

The capital cost allocated to major projects in the Kootenays, those with a cost of over $15 million, was $5.1 billion in Q3 2023, down from $6.6 billion in Q3 2022. The drawdown in value was mainly attributable to the completion of the Baldy Ridge coal mine extension, valued at $1.6 billion.

In total, there were 21 projects under construction, worth an estimated $2.6 billion in Q3 2023. The largest project under way was the Wildstone Golf and Residential Development, valued at $750 million.

An additional 10 projects were in the proposal stage as of Q3 2023, projected to cost $1.1 billion. Just over $1.4 billion worth of projects were on hold, unchanged from Q3 2022.

"Many of the proposed projects in the region aim to invest further in the Kootenay's mining industry," concluded Calder. "Exporting metallurgical coal has long been a key driver of economic activity in the region, and ensuring residents benefit from these endeavours should help encourage future investment."

To learn more, see www.bccheckup.com.

For more information:
Jack Blackwell, Economist
604.259.1143
[email protected]

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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 40,000 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.