CPABC: Prince Rupert housing starts accelerate in 2023 as major project activity falls in Northwest B.C.

SMITHERS, British Columbia, April 18, 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 159 housing units that started construction in Northwest B.C.'s two largest municipalities in 2023, more than double the number of units started one year earlier.

"New housing investment really accelerated in 2023, particularly in Prince Rupert," said Jeanne MacNeil, CPA, CA, partner at Edmison Mehr Chartered Professional Accountants. "The increase in new activity was from more multi-unit projects breaking ground."

Of the total 159 housing units that began construction in 2023, 94 were in Prince Rupert and 65 were in Terrace. More than three quarters (77.4%) of starts across the region were attached units, such as apartments and row housing.

Meanwhile, the total value of all major projects that were proposed, under construction, and on hold in Northwest B.C. was $125.6 billion in Q3 2023, down $42.2 billion, or 25.2% per cent compared to Q3 2022. The decline was mostly due to the removal of two multibillion-dollar projects that are presumed to be no longer moving forward.

There were 16 projects under construction across the region, with a total estimated cost of $39.5 billion. The LNG Canada Facility ($36 billion) in Kitimat was the largest project underway, and construction on Phase 1 was approximately 85% complete as of December 2023. The value of proposed projects totaled $71.6 billion, spread across 41 proposals.

"The region has benefited greatly from a number of large industrial projects, but the fall in inventory value serves as a reminder that a lot needs to go right to get these projects off the ground, let alone completed. Financial viability, and navigating the regulatory environment can be challenges," concluded MacNeil. "The projects that are going to be most successful are the ones that prioritize First Nations and local partnerships, and ensure local communities reap the rewards of these natural resource projects."

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 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.