Pattullo Bridge replacement is one of a group of major construction projects due to begin in B.C. (Black Press Media)

Big construction projects to drive big migration to B.C. in 2020

Forestry, housing to slow growth, says credit union forecast

Pipelines, LNG Canada, the Pattullo Bridge replacement and a new Vancouver subway are all set to drive a big increase in interprovincial migration to B.C. starting next year, Central 1 Credit Union says in its latest economic forecast.

Coupled with Site C dam construction that is reaching its peak, these major projects are expected to help push interprovincial migration into B.C. from 3,400 people this year to more than 12,000 in 2020, says the organization representing credit unions in B.C. and Ontario.

B.C.’s economic growth is leading the country, and the pace of growth is expected to slow from 2.7 per cent in 2019 to near one per cent by 2020, according to the forecast.

While internal signs for B.C. are strong, global economic conditions continue to cast a shadow. A U.S.-China trade war with Canada entangled, American trade actions against softwood lumber and turmoil in the European Union with the impending exit of Britain are risk factors in the coming years.

Housing construction continues at a fast pace, with a record second quarter for B.C. housing starts, but that is mainly a result of pre-sale condos in earlier years, said Bryan Yu, deputy chief economist for Central 1.

“Home ownership demand, owing to federal mortgage stress tests and provincial government tax measures, has dragged the resale market into recession-like conditions since early 2018, with price levels adjusting lower accordingly, says B.C. Economic Outlook 2019-2022. “Metro Vancouver is at the centre of the market correction, with sales trending at 2012 levels and price declines nearly 10 per cent from peak.”

RELATED: B.C. housing market slows, prices fall in 2019

RELATED: B.C. mayors call for federal forest industry aid

Other limiting factors are the ongoing slump in the B.C. forest industry and the availability of skilled labour as people retire in greater numbers. The unemployment rate is forecast to decline to four per cent in the coming years.

Are there going to be enough skilled people in the rest of Canada to move to B.C. for jobs? Yu says there are.

“The economic conditions are relatively slower in Alberta at the current time, and with these major projects we do see a strong labour market in B.C.,” Yu said in an interview with Black Press. “There are always concerns about affordability issues in the [urban] region.”

Workers and their families are part of a wider trend in B.C. population growth, with international immigrants being the main source. From 2019 to 2021, B.C. is forecast to grow by an average of 60,000 people annually, driving significant demand in retail consumption and housing.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Warmer fall weather could extend wildfire season: AccuWeather

Above seasonal temperatures are expected throughout September, October and November

Town experiments with protecting eroding brown bridge deck

Unusual wear and tear on the decking of Princeton’s brown bridge has… Continue reading

Word on the Street: Festivalgoers at the 27th annual Salmon Arm Roots and Blues

The Observer asked: Where are you from and what brought you to the festival?

New Penticton/Kelowna transit route ready to roll out

Route 70 Penticton/Kelowna will provide a direct trip to Kelowna from Penticton and Summerland

The Offspring and Sum41 ready to rock Penticton

The Offspring and Sum 41 will stop in Penticton to the South Okanagan Events Centre

VIDEO: Title of 25th Bond movie is ‘No Time to Die’

The film is set to be released in April 2020

Rosemount cooked diced chicken linked to listeria cases in B.C.

The symptoms of listeria include vomiting, nausea, fever, muscle aches

B.C. seniors allowed more choice to stay in assisted living

Province doesn’t need to wait for a complaint to investigate care, Adrian Dix says

Power up: UBC Okanagan researchers designing battery that packs more punch

It’s a collaboration between the university and B.C.-based tech companies

Liberals block hearings into scathing ethics report on SNC-Lavalin affair

Dion concluded in his report last week that Trudeau broke the Conflict of Interest Act

Infamous Okanagan motel to appeal being boarded up

‘The people that are living there today are compromised by the fact that they have to live there’

Keremeos business owner affected by Telus outage for two weeks

Franchise owner of HR Block Teresa DeWit says Telus “dropped the ball” in informing clients

Retired Richmond fisherman wins record-breaking $60M Lotto Max jackpot

Joseph Katalinic won the biggest Lotto Max prize ever awarded

Most Read