Corey Naphtali, CPA, CA, partner at KPMG Canada
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, there were 696 housing starts in the Cariboo’s largest municipalities during 2024, more than double the number recorded in 2023.
“Last year was a decade low in terms of new housing construction, so it’s good to see a return above 2022 levels,” said Corey Naphtali, CPA, CA, partner at KPMG Canada. “Still, we did experience a slowdown in single-detached home building.”
There were 157 detached housing starts in the Cariboo in 2024, marking the third consecutive annual decline since 2021. Meanwhile, construction began on 539 attached units, such as apartments and condos, accounting for more than three-quarters (77.4 per cent) of the total in the region.
Residential construction increased most in Prince George, where there were 559 housing starts during the year, up 176.7 per cent from 2023 and the most since 2021. Starts in Williams Lake (54) also more than doubled compared to 2023 levels, while 83 units were started in Quesnel, up 20.3 per cent year-over-year.
“Like the rest of the province, we are experiencing a shift towards higher-density housing construction,” continued Naphtali. “It is the quickest way to increase the housing supply, especially when you consider the challenges that the construction industry has faced in recent years.”
The Cariboo’s Major Project Inventory (MPI) was valued at $7.8 billion in Q3 2024, down 80.7 per cent from one year earlier. The drawdown was due to the completion of the $34.0 billion Trans Mountain Pipeline Expansion in the first half of 2024. Just over $1.0 billion, or 13.1 per cent of the region’s major projects, were in the construction phase.
“In terms of value, the Cariboo had the fewest major projects underway in the province,” continued Naphtali. “Those projects are geared towards public infrastructure, which is important, but there aren’t any major projects on the horizon that will increase the region’s industrial capacity in the near term.”
The ongoing trade dispute with the United States is reshaping trading relationships and poses a threat to local economies across the country, including in the Cariboo region. Specifically, it is anticipated that the United States will increase tariffs on softwood lumber from the current rate of 14.54 per cent to 34.45 percent. According to a 2024 report from the BC Council of Forest Industries, forestry in the Cariboo region contributed $3.6 billion in GDP and supported nearly 20,000 jobs in 2022.
“Forestry is an integral part of the Cariboo’s economy,” concluded Naphtali. “The industry has faced many challenges over the decades, and the looming threat of higher tariffs from the United States highlights the need to support workers in the industry and attract investment that will help increase the Cariboo’s productivity.”
To learn more, see www.bccheckup.com
Source: globenewswire.com
