Kamloops misses imposed housing target again

Kamloops fell further behind provincial housing targets last year as it blames economic risks faced by developers.

An annual report shows the city only met 62 per cent of the BC government targets in the two years since the rules came into place.

That’s 532 doors short of the 1,414 the BC Housing Ministry called for, falling further after reaching 66% of the target homes in the first year alone.

Starting in 2023, then-Housing Minister Ravi Kahlon ordered Kamloops to facilitate 4,236 new homes within five years. It was one of ten cities put on a list, warning them that the province will step in to make changes if the local government doesn’t meet expectations.

The list later expanded to more cities, with varying targets for each one.

Kelowna, for example, was added later and completed its first of five years in June. In that time, it more than doubled the annual target with almost 3,500 occupancy permits.

Kamloops has lagged behind for two years running and though city council has approved hundreds of development permits, offers various tax incentives for builders and has abided by the province’s new density requirements, construction has slowed.

City staff blame economic pressures from well beyond city hall.

According to the report, U.S. tariffs affecting construction costs, interest rates and a drop in immigration have “increased the economic risk” for developers.

“Hopefully the economic outlook for next year improves with continued lower interest rates, improved trade relations with the United States and the advancement of new federal policies to increase housing supply nationwide,” the report reads.

Prior to the imposed 2023 targets, Kamloops saw a five-year average of 749 new housing units built. For 2024, Kamloops had a target of 735, but only 433 occupancy permits were signed between Oct. 1, 2024 and Sept. 30, 2025.

Growing each year, next year’s target is 819 by Sept. 30, 2026. The next target is 931 occupancy permits, followed by the final goal of 1,072.

Precisely what the province plans for cities not meeting provincial targets isn’t clear.