Building more than homes

Although they are two separate industries, real estate and construction are closely linked

The construction industry in the Kootenays is vital to the economy. — Kali Love photo

When Wal-Mart came to Cranbrook in 2000, it spurred development within the community. It wasn’t long before more big-box stores arose and people began relocating to Cranbrook.

Jason Wheeldon, a realtor for Royal LePage East Kootenay Realty Ltd., said that in 2008 there were 174 housing starts that totalled more than $48 million in permit values. In 2009, there were 62 housing starts worth over $17 million and in the first quarter of 2010 there have been 43 housing starts that total over $14 million in permit value—a huge leap forward from the 1990s.

“House pricing was so low in the ’90s that you couldn’t afford to build a house,” said Wheeldon. “Now with our average house prices getting to a certain level, a new market has emerged where there is actually the ability to build.”

While it is clear that real estate markets were also affected by the downturn in the economy, it is important to note that construction emerged as a mainstay for the Cranbrook economy. Wheeldon said that over the past three years, Cranbrook’s construction industry paid its workers a round figure of $42 million in wages, which was then absorbed back into the community.

“Despite the economic ups and downs, we have always had a stable real estate base,” said Wheeldon. “What is new and exciting for the economy is our construction industry.”

Wheeldon said that traditionally, Cranbrook’s integral industries were mining and forestry. While these resource industries have brought prosperity into Cranbrook, construction for the past three years has employed more of the labour force than mining, forestry, education or health.

“(Mining and forestry) are integral to the economy but more integral is creating stability and diversifying the economic base,” said Wheeldon. “Construction is a crucial part of our economy and has essentially doubled since the 1990s.”