Housing costs a concern
The price of housing in B.C. has increaded by 60.3 per cent in five years
B.C.’s real personal disposable income had its largest increase in almost 20 years in 2006, according to the 2007 BC Check-Up, Provincial Edition, a report released by the Chartered Accountants of British Columbia.
The report found that real personal disposable incomes in B.C. rose by 4.3 per cent last year; the largest annual gain since 1989 (4.1 per cent). The income gains in B.C. were ahead of the national average (3.0 per cent) and more than double that of Ontario (1.9 per cent). Only Alberta had faster rising incomes than B.C. last year (4.7 per cent).
“Incomes in B.C. are finally catching up to the rest of the country, as a hot economy and personal tax cuts have combined to give us a significant boost in our standard of living,” said Amed Naqvi, FCA, partner with Berg Naqvi Lehmann in Nelson. “The bottom line is that in real terms, the average British Columbian had $2,000 more in their pocket in 2006 than they did in 2001.”
Real Personal Disposable Income Per Capita
| Jurisdiction |
2001 |
2006 |
Gain |
| B.C. |
$23,159 |
$25,194 |
$2,035 |
| Alberta |
$28,700 |
$32,109 |
$3,409 |
| Ontario |
$25,629 |
$26,181 |
$552 |
| Canada (avg) |
$24,074 |
$25,624 |
$1,550 |
The CA report, which compared B.C. to Alberta, Ontario, and the national average on a series of economic indicators, also found that B.C.’s cost of living and personal debt levels were higher than other jurisdictions because of our high housing prices.
“Provincially there is always a concern that high housing prices are an impediment to attracting and retaining workers,” said Naqvi. “However, if B.C.’s wages continue to rise faster than the national average, this should help make B.C. a very attractive place to live and work.”
Other key findings of the BC Check-Up report include:
· B.C.’s average housing prices increased 60.3 per cent between 2001 and 2006, compared to 41.3 per cent across Canada. The average housing price in B.C. in 2006 was $390,963, compared to $243,959 five years ago.
· B.C. ranked ahead of the national average in health care spending per capita ($2,893 compared to $2,709). Only Alberta spent more than B.C. in per capita health care spending ($2,962).
· B.C. had the lowest percentage of youth without a high school diploma (9.5 per cent) among the comparison jurisdictions for the eighth year in a row.
Economic indicators selected for the BC Check-Up LIVE study included real personal disposable income per capita, personal debt, high school completion rates, health care expenditures per capita, and cost of shelter.
The LIVE study just released is the last of three sections of the BC Check-Up, which is available online at: www.bccheckup.com.
The Institute of Chartered Accountants of British Columbia is the training, governing and regulatory body of B.C.'s 9,300 members and just over 1,500 CA students. The Institute carries out its primary mission to protect the public by enforcing the most demanding admission criteria and the highest professional and ethical standards. Thanks to the quality and rigour of their education and training, CAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight and leadership to organizations.
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