Corey Naphtali is a partner at KPMG
PRINCE GEORGE – According to BC Check-Up: Invest, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on investment trends across the province, the number of housing units that began construction in the Cariboo region’s three largest municipalities increased by 61.2 per cent in 2021, compared to the number started in 2020.
“While the Cariboo’s economy was impacted by the COVID-19 pandemic, investment data continued to highlight that the region has fared relatively well,” said Corey Naphtali, CPA, CA, partner at KPMG Canada. “Residential investors started a record number of housing units in 2021, with Quesnel showing exceptional year over year growth. This investment was driven by strong demand and increased housing prices.”
Collectively, 803 housing units started in Williams Lake, Prince George, and Quesnel in 2021, up from 498 in 2020. Breaking it down by municipality, there were 665 housing starts in Prince George (up 47.1 per cent compared to 2020), 117 in Quesnel (up 457.1 per cent), and 21 in Williams Lake (down 16.0 per cent).
The growth in housing starts was strongest amongst attached units, such as condos, townhomes, and apartments. In total, there were 534 attached units started across the region in 2021, well above the 277 started in 2020. There were 269 detached starts in 2021, an increase of 21.7 per cent compared to 2020.
“There was a significant increase in housing developments with multiple units in 2021, as the number of attached units under construction nearly doubled and accounted for about two-thirds of all starts,” continued Napthali. “The region also benefited from a significant increase in major project investment, particularly related to resource and infrastructure developments.”
The total value of major capital projects in the Cariboo was $16.8 billion in Q3 2021, an increase of 9.8 per cent compared to Q3 2020. Of the total, $4.7 billion (28.1 per cent) were projects under construction, including two projects started in 2021, the West Fraser Road Realignment ($103 million) and Highway 97 intersection upgrades ($19 million). The largest project remained the $4.5 billion Trans Mountain Pipeline Expansion.
The Cariboo also had 23 major projects in the proposal stage with an estimated cost of $11.8 billion, with several that could begin construction in the next two years, including the Valemount Glacier Resort ($800 million) and UHNBC Patient Care Tower ($600 million). In addition, a new proposal was announced in 2021, the Cariboo Gold Project ($900 million).
“The Cariboo is fortunate to have a significant number of major projects underway or expected to start in the short-term, including recreation, natural resource and healthcare projects, and transportation infrastructure,” concluded Naphtali. “In addition, the considerable housing investment in Prince George set a record for the value of building permits in 2021. Going forward, the ongoing construction in both residential and non-residential projects will spur the region’s economic recovery.”
To learn more, see www.bccheckup.com.
