Moving Money

The Thompson-Okanagan is on the sunny side of migration and that’s good for business

When people move, it isn’t just a population shift it’s an economic one.

Moving comes with short-term expenses, which means money changing hands for things like packing supplies, labour, truck rentals, realtors, finance, and home inspections. In the longer term, a lot of other local companies and professionals pick up new businesses because when people switch communities, their spending moves too.

“If we are the net beneficiary of migration, as we tend to be, then that’s exciting,” says Dean Desrosiers, managing broker at Century 21 in Kelowna.

“Real estate stirs the economy. When a house is sold, or before it’s sold, people spend a lot of money on it. The first thing they often do is fix it up. They go to the flooring store; they go to the plumbing store; they call people to help them with renovations; they do painting; they do landscaping.”

“Before, during, and after the sale of a house is very economically refreshing,” he says.

Mom-and-pop companies in particular benefit from new residents to the region, Desrosiers explains, as larger companies often bid for bigger development contracts and leave the smaller jobs to the little guys.

How much is spent?

The total cost of a move depends on a lot of factors, including whether there’s a house sale involved.

A report commission by the Canadian Real Estate Association found the average house sale in BC in 2017 resulted in spending of about $72,000. More than 234,000 direct and indirect jobs across Canada are generated annually by home sales, it says.

What movers buy

Many purchases of products and services are made (or will be) up to three months after the move. -Canada Post

52% Decorating accessories

50% Other (smaller) appliances

42% Furniture

41% Maintenance

39% Major appliances

28% Home electronics

30% Home repairs

“British Columbia experiences the highest relative job impact of any province. Home sales and purchases in that province generate just under 50,000 direct and indirect jobs,” says the report.

About 40% of house purchases in the Thompson-Okanagan region are made by people from outside Interior BC.

According to recent figures from the Association of Interior Realtors, a growing number (20%) are from the Lower Mainland, while a decreasing number are from Alberta (7%).

A small but increasing number of people are moving to the area from further east (3%).

“That’s a different group of people altogether,” says Desrosiers.

“They typically have good jobs in corporate Canada, banking, national, and international companies. They bring with them a lot of stability in their ability to buy things. You’re seeing that in the Valley. It affects everything.”

Moving trucks paint a picture

The Thompson-Okanagan has 630,000 residents—and counting.

Kelowna ranked No. 5 on U-Haul’s top 25 Canadian growth cities in 2022. Year after year, Okanagan’s most populous city is near the top of the index, which is compiled using the net

gain (or loss) of one-way U-Haul trucks arriving in a province or city. Kelowna’s continuing influx is also seen in the surrounding communities. That’s in contrast to the overall exodus happening elsewhere in BC, which saw more U-Haul trucks leaving than arriving, says the vehicle rental company.

Devin Mitchell, a Canadian president at U-Haul, says its expansive network of ubiquitous trucks makes it an authority on migration trends. The pandemic had an impact throughout Canada, but the Thompson-Okanagan appears to have bucked some trends.

“During the pandemic, people got into the habit of working remotely,” says Mitchell, who oversees Atlantic Canada. “Because of that, they were able to find cheaper housing outside of the major metropolitan areas.”

“I would bet most U-Haul relocations have one thing in common: cost,” he adds.

“People are trying to find the most affordable places with the lowest cost of living while still being able to access the great outdoor amenities for which Canada is known.”

Snapshot of Canadian movers

• In 2019-2020, 2.1 million (14%) of the 15 million Canadian households moved.

• Renters (1.2 million) were more likely to be on the move than owners (870,000).

• Seeking bigger or better housing (28%) and seeking a more desirable neighbourhood (16.8%) were the most popular reasons given for moving.

• Of the millennials (25 to 40 years old) who moved within the two years before 2021, 46% moved to become homeowners; 15.8% said they moved for employment; 10.4% moved to reduce commuting time, and 16.9% moved because of a change in household size.

• Among members of Generation X (41 to 55 years old) who moved, 31.4% did so to become homeowners.

• Older movers (56 years and older) cited reducing housing costs (27.3%) as the most common reason for relocating.

• Being close to family (19.1%) was another common reason provided by older movers, while many also had their health (12.7%) in mind when moving.

- Statistics Canada

Sun-kissed Okanagan still attractive

Certainly anyone who’s lived in the Okanagan for a certain time knows the term ‘sunshine tax.’ However, the region continues to enjoy a net gain despite the cost.

Krista Mallory, executive director of the Central Okanagan Economic Development Commission, plays a key role in attracting newcomers. Part of the organization’s mandate is to lure people to the Okanagan to fill current and future workforce needs. Over one million job openings are predicted in BC over the next decade, she says, with 120,000 of those in the Thompson-Okanagan.

People are aging out of the workforce.

In the Okanagan, the number of people over the age 65 is up 20% from 2016 - 2021, drawing comparisons to Palm Springs, Calif., as a well-known retirement destination.

“When you think about how many of those people are retiring now or will be retiring, we’re on the leading edge of a well-documented and sustained global labour shortage. We need people to relocate here,” says Mallory.

“The Okanagan is the most amenity-rich region of its size in Canada. So, it’s popular from a quality of life perspective for all those same reasons that tourism thrives in the region: access to outdoor recreation, our agricultural setting, food, restaurants, cultural activities that are popular.” TMG

Story by David Wylie. BC-based freelance writer and the publisher of theounce.ca