VICTORIA, British Columbia, July 26, 2023 (GLOBE NEWSWIRE) -- According to BC Check-Up: Live, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on demographic and affordability trends across the province, the Capital Regional District (CRD) added 9,466 new residents in 2022, bringing the total population to 439,950.
“As migration flows returned to more normal conditions, the CRD’s population grew at the highest rate in more than 20 years,” said Simon Philp, FCPA, FCMA, Market Vice President at CIBC. “The population growth was boosted by strong international immigration, but also benefited from people moving here from other regions in B.C. and other provinces.”
The region’s population grew by 8.2 per cent from 2017 to 2022. Of the total increase in 2022, a majority arrived from other countries (net gain of 5,899 residents), followed by other provinces (3,667), and other parts of the province (1,319). However, the CRD’s population growth has also been hampered by low birth rates, with mortalities exceeding births by 1,419 in 2022.
“The CRD has one of the lowest fertility rates across the country, with around a quarter of residents 65 or older,” noted Philp. “As more residents retire, that will add pressure on businesses that are already facing significant shortages of labour. To continue to attract migrants and improve housing affordability, we need to ensure we have enough housing.”
Since 2017, the CRD added 39,388 residents while the number of housing units completed was 19,723, of which nearly three-quarters (72.8 per cent) were attached units, such as condos. Although the housing development activity has been strong in recent years, the 2,881 units completed in 2022 was down considerably from the 3,938 completed in 2021.
“Across the region, there has been strong housing construction activity. However, that slowed in 2022, and developments have typically been smaller attached units replacing older stock,” noted Philp. “It is important that we place a top priority on policies that increase housing supply, with a particular focus on units in highest demand.”
The benchmark price for a single-family home in Victoria was $1.15 million in June 2023, down 7.0 per cent from June 2022 but up 47.9 per cent from June 2019. The benchmark price for an apartment was $563,600, a decline of 7.2 per cent from one year earlier, but still 34.2 per cent higher than June 2019.
Rental units have seen significant price escalation, particularly for larger units. The average rent for a 3+ bedroom unit in 2022 across Greater Victoria was $2,176, up 14.9 per cent from 2021, while rent for a one-bedroom unit averaged $1,341, up 10.5 per cent over the same period.
“Although the housing market weakened recently due to higher interest rates, housing remains unaffordable and a supply-demand imbalance will put upward pressure on housing prices in the long run,” concluded Philp. “All tiers of government need to continue focusing on growing housing supply and enhancing affordability to support local residents and attract immigrants.”
Learn more about the BC Check-Up: Live report
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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 candidates and 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.
