CPABC: Housing Starts in the Cariboo Hit Decade Low, While Major Project Inventory Jumps on TMX Cost Overruns

PRINCE GEORGE, British Columbia, April 15, 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, 296 housing units began construction in the Cariboo's largest municipalities during 2023, nearly half as many as in 2022.

"New housing development really fell off this year as new investment tapered off," said Corey Naphtali, CPA, CA, partner at KPMG Canada. "This was the fewest number of starts we have seen in a calendar year since 2014."

Of the total, 113 were attached units, such as apartments and row housing, representing a 70.1 per cent drop from 2022 levels. The remaining 183 starts were in detached or semi-detached units, marking a more modest 17.6 per cent drop in activity.

In Prince George, there were 202 housing starts during the year, down 55.2 per cent from 2022, and well below the annual average starts in the area of 482 between 2017 and 2022. Starts in Williams lake (25) also fell year-over-year, while new residential units increased in Quensel (69).

"Housing and rental prices are still some of the most attractive in the province, despite the price increases over the last few years," continued Naphtali. "We'll look for new construction to rebound next year as the economic climate becomes more palatable."

The value of major projects in the Cariboo region totaled $40.3 billion in Q3 2023, up 140.5 per cent from Q3 2022. The staggering jump was attributed entirely to additional costs associated with the federally owned Trans Mountain Pipeline Expansion (TMX). As of the third quarter of 2023, the project was valued at $30.9 billion, up from the $4.5 billion recorded in the inventory in Q3 2022. The final cost of the project is yet to be determined, but it is expected to be operational by mid-2024.

"TMX is obviously the big storyline," continued Naphtali. "But beyond that, major project investment in the region was actually relatively stable year-over-year."

Aside from TMX, there were 5 projects with an estimated cost of $523 million under construction in Q3 2023, the largest being the Cariboo Memorial Hospital expansion, valued at $366 million. Meanwhile, the estimated cost of projects in the proposal stage was $7.8 billion, down $4.1 billion from Q2 2023. The decline was expected as previously cancelled projects were removed from the inventory. A number of road recovery projects were also proposed or already under construction.

"Supporting projects that bring tangible benefits to Cariboo residents is a priority moving forward," concluded Naphtali. It's good to see infrastructure projects going ahead in the healthcare and transportation sectors."

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.