Development steady in 2020 despite pandemic, but slowdown anticipated
Hamilton sailed to another billion-dollar-plus year in building permits despite the pandemic’s economic headwinds.
But there are signs development will slow with a drop-off in applications overall, councillors heard in budget talks Tuesday.
In 2020, the city processed $1.38 billion worth of building permits, the 10th time in 11 years that it has hit seven figures.
“I think that’s very good news,” said Jason Thorne, general manager of planning and economic development.
Of nearly 2,500 residential units added in 2020, more than 1,000 were apartments.
That’s approaching a “50-50 split” between apartments and other housing types, including single-family homes, townhouses and semis, Thorne said.
That’s a “significant” shift from about 10 years ago when apartments represented 10 per cent of the mix.
The city aims to add density to Hamilton’s housing stock to accommodate an expected spike in population of about 230,000 over the next 30 years.
Last year, the city saw about $242 million in industrial activity, the second-highest total on record, and a record two million square feet in commercial development added.
But a dip in site plan applications to 130 in 2020 from 179 the year before, “could suggest that we’ll see a little bit less development activity in 2021 and in 2022,” Thorne noted.
There was also a decline in applications for city development incentive programs, which again, “could foreshadow” a slowdown.
It made sense that fewer small businesses and eateries took advantage of facade improvement programs, Thorne said. “They obviously weren’t in a position to be investing a significant amount in their properties.”
Other sectors, notably tourism and hospitality, were decimated during last year’s pandemic months.
But the film industry held strong with more than 100 productions last year, surpassing $50 million in direct local spending, Thorne said.
The planning and economic development department’s proposed budget hike of 1.7 per cent is part of the city’s overall spending plan for 2021.
Councillors are working with a 2.5 per cent hike overall, or $92 more for the average household. Deliberations are scheduled to wrap up in late March.