British Columbia is facing billions of dollars in projected structural losses due to wildfires and floods.
A first-of-its-kind study in Canada published by the Canadian Climate Institute revealed that building new homes in flood and wildfire-prone areas could cost billions and threaten affordability.
“We’re looking at over a billion dollars for both flooding and wildfire losses on an annual basis in B.C. in a worst-case scenario,” said Sarah Miller, research lead for the study.
“As the government moves to accelerate housing supply we think the best and easiest move is to stop worsening the problem, by ensuring that the new homes are built in safer places. We know that is the most effective approach because you’re addressing the root of the risk,” said Miller.
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The Thompson-Okanagan region is no stranger to massive damages caused by natural disasters. According to the Insurance Bureau of Canada, wildfires in the Okanagan and Shuswap areas caused about $720 million in insured damage in 2023 alone, the tenth costliest in Canada.
“We found that over 90 per cent of wildfire losses across the country are concentrated in a handful of regions, the Thompson-Okanagan and Kootenays being two of those regions, where communities are really bearing the brunt of these disasters and bearing the brunt of the losses,” said Miller.
The report reveals that nationally, by 2030, more than 540,000 homes could be built in flood-prone areas, and 220,000 in high wildfire-risk zones, however, redirecting just three per cent of new homes to safer areas could prevent nearly 80 per cent of potential losses.
“We do know that some land is safer to build on other land, and densification is important, so densifying in safer areas even within high-risk communities is important,” said Miller.
Researchers are also pushing provinces to make fire-proofing of homes mandatory, rather than leaving it up to the homeowner.
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B.C. to bear brunt of structural losses due to wildfires and floods
