Construction started on 4,898 new housing units in the Thompson-Okanagan in 2021, which is a 50.3 per cent jump from the previous year, according to the Chartered Professional Accountants of B.C.
“Over the past several years, the Thompson-Okanagan has attracted many new residents, which in turn boosted housing demand and prices. Developers have recognized this investment opportunity, and the number of housing units started in 2021 almost broke the previous record,” said Karen Christiansen, a partner at MNP LLP in Kelowna.
The nearly 4,900 housing units started across the region in 2021 was well above the 3,259 units in 2020 and 3,996 in 2019, but remained slightly below the previous record of 5,070 units set in 2018. The increase in 2021 came from both detached units and attached units, such as condos and apartments.
According to their figures, there were 1,855 detached units started in 2021, which was an increase of 65.8 per cent compared with 2020. In addition, 62.1 per cent of all units started in 2021 were attached, and the 3,043 attached units started was an increase of 42.2 per cent compared to 2020.
Christiansen said the region has continued to see strong major project activity, primarily in residential, infrastructure, and recreation projects.”
The inventory of major projects was $18.9 billion in the third quarter of 2021, a decline of 2.6 per cent compared with the third quarter of 2020.
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The organization said that the decrease was primarily due to the completion of several major projects, including the Lakestone Resort, which cost $1 billion; the SEKID/SOMID Water Supply Project, which cost $86 million; and Bernard Black Condominiums, which cost $60 million. The largest new proposal was the Highway 1 Four-Laning project, with an estimated cost of $243 million.
In the third quarter of 2021, there were $12-billion worth of projects under construction across the region, which was 63.2 per cent of the total estimated major project value for the Thompson-Okanagan. The three largest projects that recently started construction were Highway 1 – Salmon Arm West ($155 million), Hiawatha Park Revitalization ($150 million), and Highway 1 Quartz Creek Bridge ($121 million).
“By the end of last year, there was a greater share of major projects under construction in the Thompson-Okanagan than any other region in the province. This investment activity helped our economy through the COVID-19 pandemic and should help with our recovery,” Christiansen said.
“Going forward, it will be important to continue to attract investment to connect our region, make it more productive, and increase housing and services available to residents.”
To see the full report go to bccheckup.com.