Economic Activity for December 2007 - Prince George, BC

Overall 2007 has been an excellent year for the Prince George economy. Employment activity in

the city has been positive all year, with low unemployment and a high proportion of the labour

force fully employed. Other economic indicators continue to reflect the confidence of consumers

and business owners. Housing sales and housing starts have reached the highest levels in nearly

ten years, the total value of building permits is the highest in decades, and business license

approvals have also exceeded those of recent years. The continued strength of these economic

indicators forecasts solid performance in 2008.

We continue to see evidence that Prince George's economy is making a positive transition.

Despite the challenges for the region as a result of US housing downturn, there have and will

continue to be new developments in 2008 and beyond that are changing the face of the economy

of Northern BC. Prince George is well-positioned to benefit with transportation infrastructure

investments that connect it to growing international trade routes. Competitive land costs for

industrial development have become a strong asset for the region as well as our affordable

energy costs and well trained workforce. Interest from Asia-Pacific especially for wood products

and green energy is growing. Mining exploration increases the probability of discoveries in the

area. Growing urban investment in hotels, retail, and recreation is visible in all directions

enhancing Prince George's ability to attract and retain residents.

Economic Activity Statistics

Despite layoffs occurring due to recent downturns in the forest sector, overall employment in

Prince George continues to be strong, which is an indicator of the strength of other areas of the

economy. The unemployment rate fell in Prince George for the third straight month, reaching

4.9% in November, and unemployment continues to be lower than at this time last year, with an

average for the last three months of 5.3%, compared to 6.0 % over the same period in 2006. At

67.6% in October, the employment rate was 2 percent higher than in 2006, with 1,300 more

employed persons than at the same time last year. Full and part-time employment numbers are

also relatively stable compared to this period in 2006, when full-time employment was declining

significantly (Between October and November 2006, full-time employed persons declined by

1,700 compared to only 200 between October and November 2007).

The outlook for real estate in the city continues to be positive. In the first nine months of 2007,

1453 real estate properties (all types) changed hands in Prince George, worth $298 million. The

average resale price for a single detached residential home was 24.9% higher for the first nine

months YTD in 2007 than in the same period in 2006 ($239,392 compared to $191,629),

although the number of homes sold YTD was lower (866 compared to 950). New home prices

continue to increase; the average cost of a new home was $408,114 in October 2007, an 11%

increase from the previous month.

Year-to-date housing starts and completions total 306 and 175, respectively, with 45 starts and

20 completions in October. Cumulative housing starts from January to October were up 9.3%

over the same period in 2006 and in October 2007 there were 359 housing units under

construction in the city, which is a dramatic increase of 53% over the same month in 2006. This

is an indicator of the continued strength of housing demand in the city.

Building permits issued for the month of November totaled $39,294,162, with the majority of the

total attributed to Institutional permits valued at $35.9 million. Year-to-date permit values are up

70% over the same period in 2006, and are at the highest level in decades.

The City of Prince George approved 68 business license applications in October, which is an

increase over the same month in 2006. The relative strength of business activity indicates the

continuing confidence of entrepreneurs and consumers.

From: Initiatives Prince George