
The new 112 unit mixed housing development housing under construction in downtown Kamloops. (Photo via Victor Kaisar)
While the numbers for the full-year have not yet been finalized, 2023 is going come in as a much slower year for building activity in Kamloops compared to 2022.
The City’s Budling and Engineering Development Manager Jason Dixon notes there was $222.5-million worth of permits issued in Kamloops, through the first eleven months of last year.
This is down significantly from the $415-million recorded through 2022, with Dixon suggesting the cost of construction is a significant factor.
“Talking to builders and developers [and they said] that the change in interest rates really affects sort of the financing and how they put together the numbers on projects and whether they go ahead with projects or not,” he said.
Dixon suggests things may turn around this year once interest rates start to ease back, noting another factor could be the new provincial housing targets for Kamloops, which may start to drive activity.
But he noted that while a lack of major projects in 2023 was part of the reason for the downturn in permits issued, there is some optimism for 2024.
“We have some projects coming in 2024 that we’re looking forward to that will definitively help with the construction values,” Dixon added. “Working with the school district, we’ll be getting an application for an issuing a permit for the elementary school in Pineview, that is a big project.”
“Last year, was a record year when we had over $415 million in construction activity. Curiously 2021 was a pretty slow year at 200 million, and then 2020 previous to that was $395-million.”