Kelowna building permit numbers still high

Despite the headwinds created by rapidly rising interest rates, Kelowna still recorded its fourth highest number of residential building permits in the last 10 years.

In an update to Kelowna city council, director of planning and development services Ryan Smith said the total value of building permits in the last quarter of 2022 at $278.67 million.

That breaks down to 2,262 permits issued, compared to 2,842 in 2021, however Smith noted the permits issued last year “generally have a higher value.” The number of plumbing permits are also included in the report with 1,996 issued in 2022 compared to 2,171 in 2022.

In keeping with the city’s goal of increasing the density of residential development, 78 percent of permits last year were issued for multi-family projects versus 22 per cent for single-family houses.

That’s down by a third from the five-year average of 31 per cent single-family development, Smith reports.

Some 61 per cent of residential permits in 2022 were issued for projects inside the urban core with the balance in suburban areas. This again reflects a push by the city to for infill projects closer to downtown with a five-year average of 53 per cent urban and 47 per cent suburban, the report shows

The report breaks out permit numbers for different kinds of housing last year including secondary suites (269), row housing (230), apartment units (2,266) and carriage houses (35).

Smith is predicting building activity in 2023 to be more in line with the 10-year average as the full effects of increased interest rates, trades shortages and supply issues continue to be make themselves felt.

Despite the slowdown from 2021, Smith said the planning department continues to be busy dealing with other projects such as the North End and Tolko mill site redevelopment plan and the aftermath of the city’s zoning bylaw update as well as the housing needs assessment and the aftermath of the Official Community Plan update.

Staff are also working on a review of short term rental regulations.