CPABC: Housing starts in Nelson hit a record high in 2023, major project activity falls across the Kootenays
April 16 2024 - 1:31PM
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 292 housing starts in the
Kootenays’ largest population centres in 2023, compared to 309 in
2022. It was the first year that data became available for Trail,
where 40 of the 292 starts were recorded.
“Housing starts in Cranbrook fell off significantly
in 2023, while Nelson maintained the strong activity we saw last
year,” said Mike Calder, CPA, CA, partner at BDO Canada. “Seeing
Trail reach the population threshold to be included in the annual
counts speaks to the rapid population growth we’ve seen over the
last couple years.”
The 252 units started in Cranbrook and Nelson in
2023 represents an 18.4 per cent drop year-over-year, with
Cranbrook accounting for the entire decline. There were 73 starts
(-44.7 per cent) in Cranbrook, 179 (+1.1 per cent) in Nelson,
marking a new record high, and the remaining 40 were in Trail.
Of the total started last year, 166 were attached
units (up 20.3 per cent), such as apartments and condos, and 126
were detached units (down 26.3 per cent).
“Overall, there was a dip in new housing
construction region-wide,” continued Calder. “On the major project
side of things, the region’s investment outlook also softened in
2023.”
The capital cost allocated to major projects in the
Kootenays, those with a cost of over $15 million, was $5.1 billion
in Q3 2023, down from $6.6 billion in Q3 2022. The drawdown in
value was mainly attributable to the completion of the Baldy Ridge
coal mine extension, valued at $1.6 billion.
In total, there were 21 projects under
construction, worth an estimated $2.6 billion in Q3 2023. The
largest project under way was the Wildstone Golf and Residential
Development, valued at $750 million.
An additional 10 projects were in the proposal
stage as of Q3 2023, projected to cost $1.1 billion. Just over $1.4
billion worth of projects were on hold, unchanged from Q3 2022.
“Many of the proposed projects in the region aim to
invest further in the Kootenay’s mining industry,” concluded
Calder. “Exporting metallurgical coal has long been a key driver of
economic activity in the region, and ensuring residents benefit
from these endeavours should help encourage future investment.”
To learn more, see www.bccheckup.com.
For more information:Jack Blackwell,
Economist604.259.1143news@bccpa.ca
________________________________________About CPA
British ColumbiaThe 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.