CPABC: Annual housing starts reach new record high in Greater Victoria as rental costs climb
VICTORIA, British Columbia, April 22, 2024 (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, there were 4,992 housing units that began construction across Greater Victoria in 2023.“Greater Victoria reached a new record high for the number of housing starts in 2023," said Simon Philp, FCPA, FCMA, Market Vice President at CIBC. “That momentum will need to continue when interest rates begin to drop later this year.”
Of the total, 4,541 were attached units such as condos, townhomes, and apartments, up 14.4 per cent from 2022. There were 451 detached units started, down by 44.8 per cent year-over-year. According to the latest inflation data, the cost of rental housing in Victoria increased by 7.5 per cent between March 2023 and March 2024, outpacing the rise in ownership costs (4.6 per cent).
“Higher density building is the quickest and most cost-effective way to increase the housing supply, and combat affordability issues in the area,” continued Philp. “The push for more housing also dominated Greater Victoria’s major project activity.”
The estimated value of all major projects in Greater Victoria, those with a cost of over $15 million, was $13.5 billion in Q3 2023, down from $14.0 billion one year earlier. Of the total, 44 projects worth $10.3 billion were under construction. More than $8.0 billion worth of projects underway were designated for residential or mixed use.
The report also highlighted CPABC’s recent member survey, which provides a pulse-check on challenges facing B.C. businesses. CPAs living on Vancouver Island identified housing affordability as the biggest obstacle to business success, followed by attracting and retaining skilled labour and labour compensation costs.
“It all comes back to improving housing affordability to support the local economy,” concluded Philp. “Having an adequate housing supply and taming the high cost of living will help remove some of the barriers to business success.”
To learn more, see www.bccheckup.com.
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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 40,000 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.
CONTACT: For more information:
Jack Blackwell, Economist
604.259.1143
news@bccpa.ca