Building permits in 2012 on new record pace

Total value to surpass that of 2007

Calgary’s residential building permit applications are on track to set a new annual record for estimated construction value, says a city official.

The housing industry “is certainly is in a very healthy state,” says Cliff de Jong, senior special projects officer with the building regulations department at the City of Calgary.

The total estimated value of proposed residential construction in 2012 from Jan. 1 of that year to the end of November is estimated to be $2.4 billion.

It surpasses the previous high of $2.3 billion during the same period in 2007 and it is 16 per cent above the total for the same period in 2011.

For all of 2007, residential permits topped out at $2.5 billion in 2007.

“On the residential sector alone, it does appear that we are approaching a record year in terms of construction value,” says de Jong.

Due to the following five years, there are some cost increases to consider when making the comparison between 2007 and 2012, says de Jong. “There are some inflationary numbers there, but in terms of raw data, it does appear that we’re on pace to eclipse 2007 in the residential sector only.”

When commercial construction permits are included, the total estimated permit value for Calgary from Jan. 1 to the end of November is $4 billion — well off the pace for 2007, which was a record $5.6 billion.

The number of new residential units created this year is also not on track to set a new record.

As of November, building permit applications have been made for 8,953 residential units, down from 12,937 permits for all of 2007.

The City of Calgary’s latest data indicates the value of building permit applications for new residential construction and improvements totals $187.8 million for the month of November, a 12 per cent increase compared to the same month in 2011.

The 1,035 residential building permit applications in November marks a 13 per cent increase compared to the same month in 2011.

From Jan. 1 to the end of November, the number increased by nine per cent to 12,862 applications.

Building permit applications indicate an intention to build, not actual starts.

In November, there were 419 applications for new singlefamily homes, up 17 per cent compared to the same month last year.

There were 68 applications for new duplexes, up 15 per cent; eight applications for new apartment buildings, up 33 per cent; and seven applications for new townhouse projects, down 46 per cent.