Niagara building boom continues
Ongoing economic momentum unexpected during pandemic
Investment in Niagara saw a “serious surge” during the summer months, despite the economic toll of the COVID-19 pandemic, says Niagara’s planning and development commissioner, Rino Mostacci.
“Things are actually looking up quite positively coming out of the pandemic, particularly with respect to development volumes,” Mostacci said. “In fact, our August numbers for this year are better than August from last year.”
He told members of Niagara Region’s planning and economic development committee Wednesday in the months since the pandemic hit in the spring “there’s been a very serious surge in development activity and interest in the region since the beginning of the summer.”
Niagara Economic Development research and analysis manager Blake Landry said investment levels were not what he expected to see when he began analyzing data.
“I expected to see a total loss of momentum. This is very surprising,” he said. “It’s actually positive and shows us Niagara is quite resilient in terms of investors willing to continue on with their projects.”
There was a “major dip” in residential and commercial developments in April as building permits were suspended. But numbers quickly began to climb when building permits were again being issued in May, “with a strong trajectory outpacing the last few years.”
“We’ve actually surpassed previous levels, despite COVID,” Landry said. “I believe this is just a reflection of the resiliency of the housing sector.
There’s still a lot of demand here.”
Commercial building projects, too, saw a “major recovery in May.” And although industrial investment lagged behind the previous three years, Landry said it was “still historically strong.”
“The previous few years have been record-setting when it comes to industrial construction, but we’ve lowered back down to still strong levels.”
Government and institutional investments also increased significantly, driven by large-scale developments such as the Canada Summer Games facility be
ing built by Brock University.
Landry said it appears the fiveyear boom the region has experienced is continuing, with total investments so far this year reaching $158.5 million.
Meanwhile, building permits issued this year representing future investment have also increased over previous years.
Landry said 2020 remains on track to set a new record for Niagara, adding total building permit values had reached $740 million in July.
“There’s a ton of interest here from commercial investors and residential developers. We haven’t lost that momentum,” he said. “From an economic development perspective, we’re still attractive and we’re still working on many inquiries. Businesses are still looking here to expand and locate their businesses and develop opportunity.
Mostacci, however, said there is a downside to the investment.
He said housing shortages have led to “a very significant price escalation across the GTA.”
“Affordability coming out of the pandemic is going to be a serious concern, particularly in Niagara where we anticipate with the great amenities that we have and the lifestyle that’s available here, there’s going to be greater interest for housing supply in the region,” Mostacci said.
Landry shared concerns about affordability.
Despite the level of development in Niagara, he said “incomes don’t necessarily keep up with the cost of housing.”