Help may be coming to ease Thompson-Okanagan housing crunch
As home and rent prices continue to rise in the Thompson-Okanagan region, help may be on the way thanks to a near-record number of new houses under construction last year, according to the Chartered Professional Accountants of B.C.
Housing starts in the region were up 50.3% last year over 2020 at 4,898. The record was set in 2018 at 5,070 units. Karen Christiansen, spokesperson for the association and a Kelowna accountant, said investors saw a need, given the region's population growth.
“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,” she said in a news release.
Of those new housing starts, 1,855 were detached units — single family homes — and the rest were attached units like condos or apartments. The demand and new investment in housing helped maintain economies during the pandemic, she said.
READ MORE: Housing sales down but prices jump in Kamloops, Okanagan real estate markets
“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,” she 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.”
Also aiding the economy and recovery was nearly $19 billion in what the accountants call 'major projects' such as highway upgrades near Salmon Arm, Hiawatha Park in Kelowna and a major bridge project near Golden. That $19 billion is actually a slight reduction from 2020 because several major projects — water projects in Kelowna, Kelowna condominium projects and Highway 1 four-laning projects — were in 2020.
House prices across B.C. including the Interior, set new records for average home prices in 2021. B.C. Assessment captured that rise at roughly 30% across the region, perhaps indicating more investment may be coming.
READ MORE: House price assessments increase roughly 30 per cent in Kamloops, Okanagan
“Housing construction in the region provides significant economic activity and boosts our housing supply, which is crucial for affordability,” continued Christiansen. “In addition, the region has continued to see strong major project activity, primarily in residential, infrastructure, and recreation projects.”
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