Northwest B.C. Housing Splits Apart as Kitimat Rebounds and Smithers Prices Soar Terrace remains expensive despite falling sales, Prince Rupert struggles to turn port growth into housing momentum, and Kitimat emerges as the Northwest’s most affordable major market The housing market across Northwest British Columbia is moving in directions few would have predicted. Kitimat, still adjusting to the departure of thousands of LNG Canada construction workers, recorded one of the region’s strongest increases in home sales during the first half of 2026. Prince Rupert also sold more properties, even as detached-home prices declined and the city continued to wrestle with aging houses and failing municipal infrastructure. Terrace recorded fewer sales and a lower average detached-home price, but buyers received little meaningful relief as limited inventory kept the city among the Northwest’s most expensive housing markets. Smithers experienced the steepest sales decline among the four major centres, yet its median detached-home price climbed to approximately $575,000—the highest in the region. The latest figures show that Northwest B.C. can no longer be described as a single housing market. The LNG town, the port city, the regional service centre and the mountain lifestyle community are now following sharply different paths. Northwest B.C. housing at a glance CommunityFirst-half 2026 salesChange from 2025Median detached priceTerrace123Down 9.6%About $540,000Kitimat85Up 19.7%About $400,000Prince Rupert75Up 17.2%About $420,000Smithers73Down 17.0%About $575,000 The numbers challenge several common assumptions. Kitimat was not the weakest ownership market. Terrace was not leading the region in sales growth. Prince Rupert’s port expansion did not create a housing boom. And Smithers—not Terrace—was the most expensive major housing market in Northwest B.C. Kitimat’s post-LNG surprise Kitimat recorded 85 property sales during the first six months of 2026, up from 71 during the same period in 2025. That represents an increase of nearly 20 per cent. The total value of transactions rose from approximately $28.7 million to $31.9 million, while 62 detached houses changed ownership. The increase came as Kitimat continued adjusting to the end of LNG Canada’s enormous construction phase. At the project’s peak, thousands of temporary workers were accommodated in industrial camps, hotels, apartments, basement suites and investor-owned houses. As construction wound down and LNG Canada moved into permanent operations, much of that temporary population departed. The result has been a major shift in the kind of housing demand present in the community. Rental conditions reportedly weakened sharply as landlords lost industrial and contractor tenants. Some investors who purchased homes during the construction boom were left competing for a much smaller pool of renters. Yet the same correction appears to have helped Kitimat’s ownership market. The median detached-home price declined from approximately $419,500 in 2025 to around $400,000 in the first half of 2026. That made Kitimat the most affordable of the four principal Northwest markets. Homes also sold relatively quickly, averaging approximately 26 days on the market—faster than in Terrace, Prince Rupert or Smithers. Local families and first-time buyers who struggled to compete during the construction boom may now be finding opportunities. Kitimat’s housing market is not simply collapsing after LNG construction. It is being redistributed. Some houses that previously functioned as temporary workforce rentals are returning to the permanent residential market, where they can be purchased by people who intend to live in the community. KITIMAT MARKET SNAPSHOT Sales: 85 Sales change: Up 19.7% Median detached price: Approximately $400,000 Average detached price: Approximately $435,492 Average time on market: 26 days Main pressure: Post-construction rental correction Main advantage: Lowest entry price among the four major markets Kitimat’s longer-term outlook will depend on whether permanent industrial employment can replace enough of the extraordinary demand created by LNG construction. Rio Tinto’s BC Works smelter remains a major, stable employer. Cedar LNG is under construction and will bring additional activity, although its expected workforce is far smaller than the peak LNG Canada construction workforce. The possibility of future LNG expansion also continues to influence expectations. But proposed projects and future expansion cannot be treated as guaranteed housing demand. For now, Kitimat appears to be moving away from a temporary-worker market and toward a more affordable ownership market for permanent residents. Terrace remains expensive—but fewer homes are changing hands Terrace registered 123 property sales during the first half of 2026, down from 136 during the same period last year. The total value of sales dropped from approximately $72.1 million to $59.9 million. Detached-home sales fell to 68, while the average detached selling price declined to approximately $532,053. Those numbers would normally suggest a market losing strength. But Terrace buyers are unlikely to feel that the city has suddenly become affordable. The median detached-home price remained close to $540,000—approximately $140,000 higher than Kitimat. At the end of June, only 170 properties of all types were reportedly available across the Terrace trading area. Terrace is therefore facing an unusual situation: sales are declining, but the supply of attractive and attainable housing remains too limited to produce a major price correction. The city’s economic base helps explain why prices remain elevated. Terrace functions as Northwest B.C.’s primary healthcare, retail, aviation, education, government and professional-services centre. The opening of Ksyen Regional Hospital expanded Terrace’s healthcare role and created demand from physicians, nurses, technicians, administrators and other professionals requiring permanent housing. The city also benefits from Northwest Regional Airport, Coast Mountain College, provincial offices, construction companies, Indigenous organizations and regional businesses serving communities from Kitimat to the Hazeltons and beyond. This gives Terrace a more diversified employment base than communities tied primarily to a single industrial project. TERRACE MARKET SNAPSHOT Sales: 123 Sales change: Down 9.6% Median detached price: Approximately $540,000 Average detached price: Approximately $532,053 Average time on market: 37 days Main pressure: Limited quality inventory Main advantage: Diversified regional economy Terrace’s challenge is not necessarily disappearing demand. It is the shortage of appropriate homes. There are too few affordable rentals for service workers, too few attainable houses for first-time buyers and too few modern family homes for professionals relocating to the region. Existing homeowners may also be reluctant to sell and surrender mortgages secured when borrowing costs were lower. That so-called mortgage lock-in effect is a plausible contributor to limited listings, although local evidence would be required to measure its exact impact. Terrace is not experiencing an obvious housing boom. It is experiencing something more frustrating: fewer transactions, stubbornly high prices and not enough suitable homes for the people trying to enter the market. Prince Rupert’s port grows faster than its housing market Prince Rupert recorded 75 property sales in the first half of 2026, up from 64 during the same period in 2025. That was an increase of approximately 17.2 per cent. However, the total dollar value of sales remained almost unchanged at approximately $30.5 million. The median detached-home price reportedly declined from approximately $446,805 to $420,000. More properties sold, but they generally changed hands at lower prices. That creates an uncomfortable contrast for one of Canada’s most strategically important port cities. The Port of Prince Rupert continues to attract major investment in container shipping, bulk exports, energy terminals, logistics facilities and rail infrastructure. Cargo volumes increased during 2025, while additional projects around Ridley Island, Kaien Island and the regional rail network promise further investment. But major infrastructure investment has not translated into an equivalent housing surge. One explanation is that modern port expansion does not necessarily create employment in proportion to the volume of cargo moving through the terminals. Automated equipment, on-dock rail systems and highly efficient logistics operations can move more cargo without requiring thousands of additional permanent residents. Some construction employment is also temporary, while rotational and commuting workforces do not always create new local households. The other explanation is more visible on Prince Rupert’s streets. The city has a serious housing-quality problem. Many homes are old and have endured decades of heavy rain, moisture, wind and deferred maintenance. Buyers regularly encounter properties requiring expensive upgrades involving roofs, foundations, drainage, electrical systems, plumbing, insulation, mold or structural repairs. A $420,000 home requiring another $150,000 in renovations is not necessarily more affordable than a newer, more expensive property in another community. PRINCE RUPERT MARKET SNAPSHOT Sales: 75 Sales change: Up 17.2% Median detached price: Approximately $420,000 Average time on market: 49 days Main pressure: Aging housing and infrastructure failures Main advantage: Major port and logistics investment Prince Rupert also faces severe physical barriers to new construction. Steep rock, muskeg, limited serviced land and high building costs make new housing difficult to deliver. At the same time, the city is undertaking extensive work to replace aging water and sewer infrastructure after years of breaks, advisories and emergency repairs. These projects are essential, but they also consume municipal resources, disrupt neighbourhoods and add financial pressure to local taxpayers. Prince Rupert’s economy may be expanding, but its residential foundation remains fragile. The city’s next major challenge is not attracting another industrial announcement. It is ensuring that workers and families can find modern, reliable and financeable homes when they arrive. Smithers becomes the Northwest’s most expensive market Smithers recorded 73 property sales during the first six months of 2026, down from 88 during the same period last year. That was a decline of 17 per cent—the steepest fall among the four major Northwest markets. Yet the median detached-home price rose from approximately $529,659 to $575,000. Fewer homes sold, but the ones that did sell established the highest price level in the region. Smithers has increasingly become a premium lifestyle and professional-services market. The town has a stable employment base in healthcare, education, provincial government, tourism and regional administration. It also supports mining and exploration activity across northern B.C., attracting technical, engineering, environmental and administrative professionals. But Smithers’ appeal extends beyond employment. Its mountain setting, ski hill, fishing, trails, cultural amenities and community character make it attractive to retirees, remote professionals and families leaving larger cities. Smithers offers a lifestyle that buyers may be willing to pay a premium to obtain. The problem is that there are very few homes available. Only 31 detached houses reportedly sold during the first half of the year. Acreages and vacant land accounted for a significant portion of the remaining transactions. For a family seeking a standard home within town, the selection can be extremely limited. SMITHERS MARKET SNAPSHOT Sales: 73 Sales change: Down 17.0% Median detached price: Approximately $575,000 Average time on market: 45 days Main pressure: Extremely limited housing and rental supply Main advantage: Lifestyle demand and diversified professional employment Smithers is not experiencing a high-volume real estate boom. It is becoming an exclusive, low-liquidity market where scarcity allows a relatively small number of sales to support the Northwest’s highest prices. That creates growing affordability concerns for local service workers, younger families and residents without access to professional, government or resource-sector incomes. Houston delivers the region’s biggest surprise Beyond the four primary markets, Houston recorded the strongest sales increase identified in the regional data. Property transactions rose from 25 during the first half of 2025 to 37 in the first half of 2026—an increase of 48 per cent. The rebound came despite continuing uncertainty surrounding the forestry sector and the future of major mill operations. Lower housing prices may be attracting buyers looking for affordability along the Highway 16 corridor. Some households may also be choosing Houston while working in mining, construction, forestry support or other regional industries. But percentages can be deceptive in small markets. An increase of 12 sales creates a 48 per cent jump when the starting point is only 25 transactions. Houston’s rebound is notable, but it does not yet prove that the community has completed its economic transition away from dependence on forestry. The bigger question is whether affordable housing can help Houston retain families and attract new employers—or whether the increase represents a short-term bounce from an unusually weak year. Hazelton’s problem may not be weak demand The Hazelton and Highway 37 area recorded just 14 property sales during the first half of 2026, down from 17 a year earlier. It would be easy to interpret those numbers as evidence of a weak housing market. But transaction volume tells only part of the story. The Upper Skeena contains a substantial amount of older housing, some of which requires significant repairs or does not meet the standards demanded by conventional lenders and insurers. A property can be inexpensive and still be difficult to purchase. Homes with foundation problems, outdated electrical systems, water issues, major structural repairs or uncertain servicing can be challenging to finance. As a result, buyers may need larger down payments, private financing or cash. The region also faces limited serviced land, high construction costs and a shortage of local contractors. Hazelton’s housing problem may therefore be less about a lack of people seeking homes and more about a lack of safe, modern and mortgageable properties. Northwest B.C. has both a rental shortage and a rental surplus The region’s greatest housing contradiction may be found in the rental market. Terrace, Prince Rupert and Smithers continue to face very limited rental availability. Kitimat appears to be experiencing the opposite. Rental demand in Kitimat weakened following LNG construction demobilization, leaving some landlords with vacant houses, apartments and secondary suites. Reported local estimates have placed Kitimat’s vacancy rate as high as approximately 20 per cent. That figure requires caution because it may come from a local survey or a particular part of the rental market rather than a directly comparable CMHC measure. Smithers’ reported vacancy rate also comes from local housing analysis because the town is not consistently covered through the same CMHC rental survey used in larger centres. Even with those limitations, the broad divide is clear. In Kitimat, landlords are competing for fewer industrial tenants. In Terrace, renters are competing for limited housing near the Northwest’s largest concentration of healthcare and regional services. In Prince Rupert, tenants face a shortage of modern, well-maintained rental units. In Smithers, suitable vacancies can be extremely difficult to find. The same Northwest region contains both excess rental capacity and severe rental scarcity. There is no single solution The data exposes a housing mismatch rather than one universal regional shortage. Kitimat has to transition housing built or purchased around temporary industrial demand into stable homes for permanent residents. Terrace needs more apartments, townhouses, serviced lots and attainable family housing. Prince Rupert needs infrastructure replacement and major investment in the quality of its existing housing stock. Smithers needs additional supply in a market where land, labour and construction costs make private development difficult. Hazelton and the Upper Skeena need more homes that are safe, modern, serviced and eligible for conventional financing. Houston needs to connect housing affordability to a credible long-term economy beyond forestry dependence. Stewart, with its tiny population and project-driven economy, requires a completely different approach based on mining cycles, seasonal workers and extremely limited construction capacity. Building more units will not solve every problem if those units are unaffordable, poorly located, unsuitable for families or dependent on temporary workers. Northwest B.C. needs the right housing in the right communities for the people who will remain after the construction crews leave. What happens next The remainder of 2026 and 2027 could widen the differences between these markets. Cedar LNG construction may absorb some of Kitimat’s available rental capacity and provide additional confidence to the resale market. Any serious movement toward an expansion of LNG Canada could quickly change expectations, although a proposed expansion should not be counted as confirmed demand until a final decision is made. Terrace is likely to remain expensive unless more serviced land and new housing become available. Prince Rupert’s market will depend partly on whether large-scale infrastructure replacement creates conditions for modern residential development rather than merely repairing past failures. Smithers is likely to remain costly and tightly held as long as lifestyle demand and professional employment compete for a very small pool of properties. For years, industrial announcements across the Northwest were often treated as if they would lift every nearby community in the same way. The first half of 2026 shows why that assumption no longer works. LNG construction can produce a rental boom followed by a vacancy problem. Port expansion can increase cargo volumes without creating a matching population surge. Healthcare and government employment can keep housing expensive even while sales decline. Lifestyle demand can turn a small northern town into the region’s highest-priced market. Northwest B.C. is not rising or falling together. It is splitting into separate housing realities—and the distance between them is becoming increasingly difficult to ignore. Read the full article








