Northeast B.C. records lowest housing construction starts in two decades: CPABC

FORT ST. JOHN, B.C. — The number of housing units that began construction in Dawson Creek and Fort St. John decreased by 44.2 per cent in 2022 compared to 2021.

The numbers were pulled from BC Check-Up: Invest, an annual report by the Chartered Professional Accountants of British Columbia (CPABC).

“In 2022, the number of units started in the two major population centers in Northeast B.C. fell to the lowest level in the past two decades,” said Ben Sander, a partner at Sander Rose Bone Grindle. 

“However, this decline corresponds with low population growth and declining housing demand in the region.”

In 2022, construction began on 63 housing units in Dawson Creek and Fort St. John, down from the 113 units started in 2021, according to CPABC.

In Fort St. John, 60 housing construction projects began in 2022 and three in Dawson Creek. In 2021, Fort St. John saw 104 starts, and Dawson Creek saw nine.

At the same time, Northeast B.C.’s population growth was just 54 people from 2021 to 2022.

“The region’s housing supply has kept pace with population growth, which has helped housing remain much more affordable here than in other regions in B.C.,” said Sander. 

“While residential investment has been low in the region, investment into major projects continues to be high.”

CPABC said major projects currently proposed, under construction or on hold were worth $44.7 billion as of the third quarter of 2022, which accounted for 11.5 per cent of all major projects in the province.

That number is down from the $45.2 billion in the third quarter of 2021, reportedly due to the Spruce Ridge Expansion Project worth $565 million.

“The largest construction projects across Northeast B.C. continue to be natural resource projects, particularly BC Hydro related,” Sander said. 

“These projects bring a significant amount of capital and economic activity to the region, with Site C alone employing nearly 4,800 workers at the start of this year.”

In the third quarter of 2022, CPABC says there were ten projects worth $23 billion under construction across the region, with the $16 billion Site C Project being the largest.

There were also 23 proposed projects with an estimated capital cost of $14.7 billion, including the recently proposed Hydrogen Electrolyzer Plant in Chetwynd worth $200 million, according to CPABC.

“While major project activity is an important driver of economic activity in the region, one area of concern is that many local residents and businesses of nearby municipalities are not yet seeing benefits from these investments,” said Sander. 

“That will change once these projects are completed and employ local residents, but going forward, we need to examine ways that major project activity can be more immediately benefit residents of Northeast B.C.”

For more information, visit the CPABC website.