Home building’s contribution to Kamloops, Okanagan economies nearly $4 billion

New data released this week shows that homebuilding is one of the biggest – if not the biggest – economic driver in Kamloops and the Okanagan.

Together, the region’s four major centres triggered $3.65 billion in investments and $2.06 billion in wages for home building, renovation and repair, according to Canadian Home Builders Association data.

“Residential construction is the leading economic driver in Kelowna, contributing over $2.5 billion dollars in investment and $1.4 billion dollars in wages,” says a news release from the Central Okanagan branch of the association. “The sector is arguably one of the largest local economic contributors, surpassing both tourism and technology.”

The Kamloops home building industry triggered $445 million in investment and $260 million in wages for construction, renovation and repairs.

Vernon chipped in $409 million in investments and $232 million in wages. Penticton added $297 million in investments and $169 million in wages.

READ MORE: Penticton may be the next Okanagan hot spot

“Residential construction is the backbone of our local economy,” association president Darren Witt said in the news release. “It not only provides shelter and homes for our community but also plays a vital role in generating jobs, stimulating economic growth, and enhancing the overall quality of life for residents.”

The biggest part of the homebuilding industry is new home construction.

Between Kamloops and the three Okanagan areas listed in the report, there were 4,696 housing starts in 2022, creating 12,332 jobs that paid $891 million in wages.

Despite the importance of the industry to local economies, it faces challenges that include a slowing in the pace of new building permits being issued, the release says.

READ MORE: Politicians point fingers on housing crisis, but calls growing for more co-operation

“Interest rates continue to rise, building code requirements are increasing and municipalities all over the Okanagan are looking to make more money off of new home construction, indirectly increasing the cost of home ownership locally,” Dan Winer, executive officer of the association’s Central Okanagan branch, said in the news release.

“At a time when housing has never been more expensive, we need municipalities to stop looking at builders and developers as a piggy bank. They need to work with industry as partners in meeting the demands of a growing region.”

See the report here.

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