CPABC: Kootenays population growth and housing construction strong in 2022, housing prices up slightly

CRANBROOK, British Columbia, July 28, 2023 (GLOBE NEWSWIRE) -- According to BC Check-Up: Live, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on demographic and affordability trends across the province, the Kootenays added 1,802 new residents in 2022, bringing the total population to 166,301.

"Over 1,800 new residents arrived in the region in 2022, which was similar to pre-pandemic population growth in 2019," said Mike Calder, CPA, CA, partner at BDO Canada. "The region was able to attract new residents from other parts of the province, other provinces, and other countries. However, negative natural growth continues to hamper overall growth."

In 2022, a net of 1,214 residents from other provinces moved to the Kootenays, roughly in line with the annual average of 1,182 from 2017 to 2021. The region also added a net 587 new residents from other parts of B.C., and 686 from other countries. The majority of all new residents were 39 years old and younger. Meanwhile, deaths continued to outnumber births in the region and this negative natural growth reduced the population by 685 in 2022.

"Given that our region has the second oldest population in the province and continues to age, it is a good sign to see the region attract a large number of younger immigrants to help boost the workforce and potentially start families," noted Calder. "Another good sign is the region saw a large number of new housing units constructed in 2022."

The only age group to increase as a per cent of the population in the Kootenays over the past ten years has been residents aged 65-plus, who currently make up one-quarter (25.1 per cent) of the population, compared to less than a fifth (19.1 per cent) in 2012. The Kootenays' average age in 2022 was 45.6 years, well above the provincial average of 42.8 and up from 43.7 in 2012.

In 2022, there were 527 housing units constructed in Cranbrook and Nelson, more than the total number units completed from 2019 to 2021 (513 units).

"Given the need to house our growing population and improve housing affordability, the significant jump in housing construction is important," continued Calder. "While housing prices increased modestly over the past year, they remain far above levels seen just a few years ago."

In June 2023, the average price of a home sold was $543,406, up 4.3 per cent from one year prior, and 60.3 per cent higher compared to June 2019. Rental rates also continued to rise, with the average Cranbrook one-bedroom unit costing $1,024 a month in 2022, up by 15.2 per cent from 2021 and 30.6 per cent from 2017.

"In the past, the allure of our region's business prospects, employment options, and recreational offerings, coupled with reasonably priced housing have attracted newcomers," explained Calder. "Regrettably, the significant price escalation in the region over the past few years is eroding our region's competitive advantage. It is imperative that we prioritize and promote increased housing construction to ensure that both present and future residents can afford to call the Kootenays their home."

To learn more, see www.bccheckup.com.

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 candidates and 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.