Governments lose revenue as housing sales drop in Okanagan

Slow sales lead to loss in revenue across all stakeholders involved in new-home construction

Only 2,357 homes were sold this June in the Central Okanagan, said the Okanagan Mainline Real Estate Board. That is 415 fewer homes than the same time last year.

The decline may not seem detrimental, but its effects are far reaching said Cassidy deVeer, president of the Canadian Home Builders’ Association Central Okanagan (CHBA-CO).

“There is a ripple effect when sales and new homes are postponed or cancelled,” deVeer said. “It’s not just the home builders, but all those who service and supply the industry.”

READ MORE: Man buries ‘device’ in Kelowna Park, another is bear maced, both arrested

READ MORE: Plans in place to evacuate Okanagan Correctional Centre

“A flooring supplier representative told me yesterday that his residential sales are way down,” she said, and based on a new report, it is noticeable there is a direct impact on government revenues.

The report, commissioned by the BC Chapter of CHBA, studies the benefits new home construction offers government. It was not publicly released until now. The report revealed that one new home built and sold in the Central Okanagan raises more than $94,000 in revenues split by the three levels of government.

“Housing affordability is an issue we hear about often and it’s a top concern of all Canadians,” deVeer said. “When buyers hear their homes include more than $94,000 in tax, you get their attention quickly.”

The report looked at both fees and taxes directly levied on the construction and sale of new homes and additional revenues generated through income taxes and taxes on the construction materials. Provincial sales taxes generated by the purchasing of materials was also included, but the report did not take into account the Energy Step Code charges.

In order to better inform the public before the upcoming federal election, CHBA launched an awareness campaign on housing affordability.

The website affordability.ca summarizes factors affecting affordability while informing Canadians on issues with home ownership.

READ MORE: No bull: unusual sighting on the Okanagan Rail Trail


@caitleerach
Caitlin.clow@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

Okanagan team bows out early at B.C. baseball championships

The SOMBA Tigers U18 AAA squad lost its first two games at the provincials

Laugh out loud Okanagan theatre group production

The St. Andrew’s Players production of Drinking Habits hits the stage Aug. 23 for nine shows

Kelowna Rockets prepare for biggest rookie camp in years

The 2019 rookie camp starts Aug. 19 with over 150 players

New way to connect with South Okanagan-Similkameen family physicians

Patients who do not currently have a primary care provider can add their name to a centralized list

Osoyoos woman who threatened mom and baby with butcher knife sentenced

Sharon Constance Forner pleaded guilty to one criminal charge and was sentenced

It’s snow joke: Up to 30 cm of snow expected to fall in northeastern B.C.

Alaska Highway, Fort Nelson to be hit with August snowstorm, according to Environment Canada

Good morning bats! Salmon Arm office receives surprise visit by winged critters

Pair of bats found huddled together on wall in the sun outside downtown office

Retrieved body from Okanagan Lake identified as missing kayaker

Zygmunt Janiewicz had been missing since May and was recovered Aug. 10

Shuswap tow truck operator sees high number of collisions this summer

Drivers encouraged to “loosen up behind the wheel, smarten up and read the road”

Paddleboard festival coming soon to Kalamalka Lake

Wildfire smoke got in the way of last year’s event, but conditions look better this summer

North Okanagan-Shuswap Liberal candidate responds to Trudeau ethics report

Prime Minister’s immediate response to commissioner’s findings appreciated

Discussion on grief and loss between Stephen Colbert, Anderson Cooper goes viral

The exchange includes emotional question from Cooper, and outlook on grief as a child

Toronto activist calling on federal parties to nominate more black candidates

Fewer than 20 black Canadians have been nominated so far, including some Liberal MPs seeking re-election

Most Read