CPABC: Housing starts fall across the Thompson-Okanagan in 2023

KELOWNA, British Columbia, April 22, 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, 4,133 housing units started construction in the Thompson-Okanagan in 2023.

"Increasing the housing supply is critical to making housing more affordable in the region," said Karen Christiansen, FCPA, FCA. "The number of starts fell by just over 15 per cent in 2023, after hovering near 4,900 during 2021 and 2022."

The 4,133 housing starts in 2023 were down by 15.1 per cent compared to 2022 as new activity fell in both the attached and detached markets. Construction started on 3,049 attached units (-12.1 per cent) during the year, while there were 1,084 detached starts (-22.5 per cent) in 2023. The drop in starts was widespread across the region, as declines were recorded in most major population centers.

There were 2,970 housing starts in the Kelowna CMA, down 12.2 per cent year-over-year, but still 745 starts above 2019 levels. The city of Kelowna was approved for $31.5 million in federal funding through the Housing Accelerator Fund in October 2023, which provides incentive funding to municipalities to help boost the housing supply.

"It's great to see Kelowna take advantage of the federal program and set lofty residential development goals over the next decade, especially in the midst of a challenging investment climate," noted Christiansen. "Despite those challenges, the region managed to maintain its major project activity."

The value of major projects in the Thompson-Okanagan was $17.7 billion in Q3 2023, up by $160 million from one year earlier. Since Q3 2022, seven projects valued at a combined $635 million started construction, including BC Hydro's $344 million Peace to Kelly Lake Sustainment project. Nearly two-thirds (61.5 per cent) of all major projects were under construction, the second-highest proportion among regions in the province. Projects in the proposal stage had an estimated value of $4.4 billion.

"Avoiding a slowdown in major project activity is certainly a positive," concluded Christiansen. "Strong infrastructure investment, both in housing and non-residential buildings, is going to be critical as our region continues to grow in the coming years."

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.