VANCOUVER, British Columbia, March 22, 2023 (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, construction began on 29,414 housing units in 2022 in Southwest B.C. (which encompasses the Lower Mainland), a 1.7 per cent increase compared to 2021.
“Given the housing affordability crisis across Southwest B.C., and with the expectation we will see significant population growth over the coming years, it is encouraging to see robust residential investment in 2022,” said Lori Mathison, FCPA, FCGA, LLB, president and CEO of CPABC. “The region was one of just two in the province to see housing starts increase last year.”
In 2022, the number of housing starts was the second highest in the history of Southwest B.C., 7.4 per cent below the record set in 2019. There were 5,450 detached homes that began construction, up by 14.4 per cent from 2021. The 23,964 attached units under construction was a decline of 0.8 per cent compared to 2021, but accounted for 81.5 per cent of all units started.
“Given larger, detached units saw the strongest demand in 2021 and early 2022, it is not a surprise to see an uptick in investors allocating capital towards that type of housing,” continued Mathison. “The region has also benefited from record levels of major project activity.”
The inventory of major projects, those with a capital cost over $20 million, increased to $104.8 billion in Q3 2022, up by 3.4 per cent compared to Q3 2021. Over that period, there were 65 new projects proposed with a total capital cost of $4.2 billion.
Of the total, $45.9 billion worth of major projects were under construction across Southwest B.C. in Q3 2022, an increase of 6.7 per cent compared to Q3 2021. Over that period, there were 62 projects started with a total capital cost of $6.6 billion, the largest being the Senakw Housing Project ($3.0 billion).
“While major project activity and residential investment were strong last year, there are signals building investment will weaken this year,” continued Mathison. “For instance, the level of building permits issued fell precipitously after interest rates began increasing.”
Between March 2022 and January 2023, overall building permit value declined by 19.6 per cent due to rising interest rates. The largest decline was in residential permit values, which fell 22.8 per cent, while non-residential permit values decreased by 14.2 per cent.
“Investment in Southwest B.C. was stronger than other regions in the province last year, driven by a mix of private and public investments. These investments boost housing supply, improve connectivity in the region, and provide substantial economic activity,” concluded Mathison. “However, high interest rates and economic uncertainty will weigh down investment in 2023. Given this challenge, we need to focus on policies that continue to attract investment to the region.”
To learn more, see www.bccheckup.com.
For more information:
Aaron Aerts, Economist
604.442.9161
news@bccpa.ca
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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 39,000 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.
